Insurance Understood: Grass winter kill
By Steve Meldrum on May 27, 2023.
Doesn’t it seem like we skipped spring and went right into summer this year? Unfortunately, I quickly realized how much winter kill my grass had, too. Do you have the same problem? Now what? Well, most people deal with it by raking away the old grass and then spreading new soil and grass seed. With some consistent watering, it’s usually just a matter of time before there is new grass comes back. It may come back fully or slightly different but at least it is not dead anymore. This got me thinking about life insurance and applying for it. This past week, I had a business owner approved for life insurance, but with an exclusion. Exclusions are when a life insurance company determines that they will not pay a claim if certain activities or medical events lead to death. My client did not like this exclusion. Although happy with an approval, the exclusion was comparable to having winter kill grass spots. The exclusion would affect a major part of the business planning that was done between shareholders. Now what? It is not glamorous, but there is a process that you can take to potentially repair your insurance lawn. First, rake through the exclusion with your insurance professional. Have the insurance professional talk to the underwriter to till through the information from multiple angles. This will help you get to the core issue and the factors that led to the decision. Sometimes there is missing information that can be added to build up the case and make it more fertile ground for a positive outcome. Clients can often fill in gaps with more information so that the underwriter can gain better context. Additionally, many applications involve a telephone interview, and the person interviewing may not have recorded the answer fully or misunderstands an answer. Fortunately, the underwriter will listen to the recording for accuracy if asked. Of course, there needs to be some seeds of concern and care for the client and the insurance company to come together. Both the client and the insurance company can be sensitive. If someone gets a rainstorm of frustration it can wash the entire deal away. Or, if the client approaches it aggressively, it can scorch those seeds that are planted. There is a balance. Adding in the sprinkles of experience really does help. Keeping everyone working towards a better outcome does take sustained attention and frankly time. You can’t rush it. If you’re patient, you might eliminate the exclusion entirely. However, other times the counter offer will be better than an exclusion but still not quite a match to what the client hoped and applied for. Look, some people like to have a well thought out insurance plan and fuss about making it the best on the block. Other people don’t care at all. It’s the same with grass and winter kill. However, if you are doing some major landscaping, you’ll want to make sure you’re doing your best to drive the best outcome. Consult an insurance professional like you would a landscaper and they will help you get a better outcome that you and your family can enjoy for many years. Steve Meldrum B.Mgt. CFP CLU is the founder of Swell Private Wealth Ltd. For over a decade he has specialized in helping individuals and businesses expand protect and perpetuate their wealth. For further information or tailored advice, contact him at 403-487-0490, steve@swellwealth.com or connect on social media 10-9
