Loan Indemnfication Coverage

Frequently, domestic carriers decline or limit their loan coverages based on medical history,

occupation, ownership percent, and organization size. At IDU, we approach these risks differently by

offering a wide range of flexible product designs. With the ability to protect up to 100% of the loan

including interest charges, our Loan Indemnification product protects individuals and businesses from

defaulting on their obligations in the event the payor suffers a disability.

Product Highlights

Aggregate limits of $50M and higher
Monthly issue limits of $250K+ per month
Policy Terms: 1 to 5 years
Benefit Periods: 12 to 120 months
Elimination Periods: 90 to 730 days
Own Occupation Definition of Disability
Waiver of Premium
Personal or third-party policy ownership
Benefits structured to mirror loan payments
Named beneficiary can be lender or collaterally assigned
Unemployment coverage
NO MEDICAL EXAMS REQUIRED!

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IDU Real Life Solution

Father & Son Business Ownership Transfer

David Smith, 71 years old, has decided to retire and sell 100% of his ownership to his son, Andrew Smith, 45 years old, a key person and executive at his company.

The Problem:

Since they are immediate family members, they were unable to obtain disability coverage through the domestic market for this non-traditional contractual loan agreement. The loan requires Andrew, the purchasing employee, to make monthly payments of $50,000 to David, the retiring owner, over the next 10 years. They have resolved this risk in case of death with a $6,000,000 life policy but are both still concerned about the remaining agreed upon payments being met if Andrew were to suffer a disabling event.

IDU Solution:

By acquiring a Loan Indemnification Policy from IDU, David and his son Andrew were able to solve this financial risk. This custom-tailored policy is designed to match the terms and the remaining loan payments needed to satisfy the financial obligation.

Monthly Benefit of $50,000
Total Aggregate Potential Policy Benefits of $6,000,000
120-Month Benefit Period
- Reducing to Match Loan Terms
5-Year Policy Term
90-day Elimination Period

IMPORTANT DISCLOSURE: This is not an exact description of coverage.

The benefits, limitations and/or exclusions described are for general illustration purposes only and may vary by state and client profile.