1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    Jumbo life insurance generally describes very large life policies which exceed limits a insurer has set for the life insurance risk to be retained and handled by that insurer or by prearranged reinsurance pools. Some insurers have a jumbo limit as high as $65M. Reinsurance is insurance to the insurers - a way to share an insurer's single policy risk with many. In the event an application for life insurance exceeds these limits the insurer must submit the case to the reinsurance market.
    Answered on May 15, 2013
  2. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    A jumbo life insurance policy is a life insurance policy with a face amount so large that one insurance company cannot take all of the risk to pay the claim. There are several large reinsurance companies that insure the insurance company to cover that large claim. The most recent case involves a world record policy written in California to a Tech Billionaire for a face amount of $201 million that actually used 19 different insurance companies so no one company had more than $20 million in risk.
    Answered on June 23, 2014
  3. 1450 POINTS
    Fred Adams
    The HSA Expert, Health Revival, Athens, GA
    Jumbo Life Insurance is a policy with a face value of at least $20 million. The majority of the time, such a policy would be underwritten and guaranteed by more than one insurance company, as the risk of such a large claim is more than a company will typically take on one life. These plans are typically used for business cases with an owner or other key member has an massively high net worth, or is otherwise obtained for estate planning purposes.
    Answered on September 6, 2014
  4. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! Like the name implies, a jumbo life insurance policy is one with a very high face value. We're talking very large. These multi-million dollar policies are generally supported by several insurance companies, so as not to sink a single company when the time came to pay the benefit. This is some serious wealth transference we're talking about here! Thanks for asking!
    Answered on October 7, 2014
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