What Is Jumbo Life Insurance?
- 4330 POINTSContact Meview profileJerry Vanderzanden, CLU, ChFCPROCo-Founder, Coastal Financial Partners Group, CaliforniaJumbo 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+41 0+1 this answerflag this answerview more answers by Jerry Vanderzanden, CLU, ChFC
- 10968 POINTSContact Meview profileTim WilhoitPROOwner, Your Friend 4 Life, Brentwood TNA 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+51 0+1 this answerflag this answerview more answers by Tim Wilhoit
- 1450 POINTSContact Meview profileFred AdamsPROThe HSA Expert, Health Revival, Athens, GAJumbo 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+11 0+1 this answerflag this answerview more answers by Fred Adams
- 21750 POINTSContact Meview profileJim WinklerPROCEO/Owner, Winkler Financial Group, Houston, TexasThat 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+31 0+1 this answerflag this answerview more answers by Jim Winkler
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