Underwriting Guide

Choose the type of coverage. The tool then shows only the inputs and methods relevant to it.

Enter up to three years. Averages are used automatically.

For business cases, this is the insured’s compensation — it drives the Key Person amount and the income-based premium affordability figure.

Enter up to three years of charitable giving. The average is used for the charitable method. Some carriers require an established pattern of giving (all three years) — e.g. Lafayette caps coverage at $50,000 without a pattern; OneAmerica requires three years of history.

Used for Buy-Sell and Creditor methods. Leave at zero if not applicable.

Business establishment affects some carriers' key-person multiples (e.g. Penn Mutual allows up to 20× for established businesses when the insured is under 70).

Coverage on a child is based on the parents' in-force coverage. Uninsurable parents are excluded from the calculation. The child is the insured — enter the child's date of birth above. Existing coverage on the child is taken from “Existing coverage” in Section 1.

Grandparent gifting selected. Carrier limits apply — e.g. Lafayette allows up to $100,000 per grandchild; Pan-American permits grandparent owner/beneficiary. All grandchildren must be treated equally.