Life Insurance with Living Benefits
Life Insurance with Living Benefits
Products issued byNational Life Insurance Company | Life Insurance of the SouthwestNational Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affiliates. Each company of NL Group is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York
TC80406(0614)3For Agent Use Only – Not For Use With The Public
What is it?What is it?
Living benefits
Life Insurance You Don’t Have To Die To Use
TC80407(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
Statistics Don’t LieStatistics Don’t Lie
What are the chances of experiencing one of these events?
1. American Heart Association, American Stroke Association, Heart Disease and Stroke Statistics, 2012 update
2. Medicare, US Dept. of Health and Human Services, 2012
TC80408(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
Leverage the power of ABRs in the event of a qualifying…
Terminal Illness
Chronic Illness
Critical Illness
Accelerated Benefit Riders are optional and may not be available in all states or on all products. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs.
TC80409(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits Life Insurance With Accelerated Benefits Riders
Life Insurance With Accelerated Benefits Riders
Things to Consider About Accelerated Benefits Riders
Things to Consider About Accelerated Benefits Riders
ABR’s are available at issue at no additional cost!
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.
TC80409(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
Accelerated Benefits RidersAccelerated Benefits Riders
*state specials apply – check your policy form for state specific information.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80411(0614)3
For Agent Use Only – Not For Use With The Public
Living BenefitsAvailable on National Life and LSW Policies
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
• Insured must be diagnosed by a physician with a terminal illness. Generally the condition must be expected to result in death within 24 months, but this may vary slightly by state.
• The client can accelerate all or a portion of the discounted death benefit and the benefit is received in a lump sum
• Benefits can be used for anything• Maximum lifetime benefit is $1,500,000
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80412(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Assumptions:•Male Age 45, Standard N/S; N/T•$500,000 Death Benefit•$9,174 Premium•FlexLife; Basic Strategy
– 4.75%– 100% P-tP Cap– Focus 8.10%– Benefit Summary Age 65
$431,629 at Age 65Based on nonguaranteed assumptions. Actual values may be higher or lower
than shown.
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80413(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Example of Terminal Illness Benefit
• A Licensed Health Care Practitioner must certify that within the last 12 months, the insured, for a period of 90 consecutive days, could not perform two out of six Activities of Daily Living (ADLs);
• Or required substantial supervision to protect oneself from threats to health and safety due to Severe Cognitive impairment.
• Maximum lifetime benefit is $1,500,000
*state specials apply – check your policy form for state specific information.
Chronic Illness•Unable to perform two of six Activities of Daily Living or cognitive impairment•Waiting period*
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80414(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Assumptions•Male Age 45, Standard N/S; N/T•$500,000 Death Benefit•$9,174 Premium•FlexLife; Basic Strategy
– 4.75%– 100% P-tP Cap– Focus 8.10%
Monthly Basis
$7,338
Lump Sum Benefit
$366,922Based on nonguaranteed assumptions. Actual values may be higher or lower than shown.
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80415(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Example of Chronic Illness Benefit
• To qualify for Critical Illness, the insured must have or have had one of the listed conditions
• Waiting period*:– 90 Days for NL– 30 Days for LSW
• Maximum lifetime benefit is $1,000,000
Critical IllnessQualifying Conditions*•Heart attack•Stroke•Cancer•End state renal failure•Major organ transplant•ALS (Lou Gehrig’s disease)•Blindness*state specials apply – check your policy form for state specific information.
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80416(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Assumptions:•Male Age 45, Standard N/S; N/T•$500,000 Death Benefit•$9,174 Premium•FlexLife; Basic Strategy
– 4.75%– 100% P-tP Cap– Focus 8.10%
$409,469Category 4 Life ThreateningBased on nonguaranteed assumptions. Actual values may be higher or lower than
shown.
Life Insurance With Accelerated Benefit Riders
Life Insurance With Accelerated Benefit Riders
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance. TC80417(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Example of Critical Illness Benefit
How does it work?
Why should you care?
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
What is it?
TC80418(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
Tax-Free Income For Life!• Benefit payments will continue as
fixed Net Cost loans.• Because policy loans are tax-free,
once qualifications are met, LIBR payments are guaranteed to continue tax-free for life.
Living Benefits
The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to the insured’s attained age being between 60 and 85, and that the policy has been inforce at least 10 years (15 years for LSW SecurePlus Provider). Insufficient policy values or outstanding policy loans may also restrict
exercising the rider. Exercising the rider and receiving an income benefit will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their benefits. Except in the case of a Modified Endowment Contract (MEC), withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate
taxable event, but substantial tax ramifications could result upon contract lapse or surrender. All benefit payments will be taxable on MECs.TC80420(0614)3
For Agent Use Only – Not For Use With The Public
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
1Assumes Non-MEC Policy
How It WorksHow It Works
Living Benefits
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.TC80421(0614)3
For Agent Use Only – Not For Use With The Public
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
Level Income OptionLevel Income Option
For Agent Use Only – Not For Use With The Public
Living Benefits
Increasing Income OptionIncreasing Income Option
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
TC80422(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
• Must be between ages 60 to 85.• Minimum waiting period:
– 10 policy years.– 15 for LSW SecurePlus Provider.
• Must meet maximum death benefit ratio.• Modal income payment must be ≥ $100.• Outstanding policy loans must be repaid in full.• Policy cannot be owned by a qualified pension or profit sharing
plan at time of income election.• Exercising the rider may terminate other riders, or reduce their
benefits.
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
TC80423(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
No rider charge deducted
• Premium payments• Increases / Decreases• Loans and Withdrawals
Guaranteed if:• No face amount increases• No partial withdrawals• No loans
Living Benefits
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.TC80426(0614)3
For Agent Use Only – Not For Use With The Public
Life Insurance With The Lifetime Income Benefit Rider
Life Insurance With The Lifetime Income Benefit Rider
Training MaterialsTraining Materials
TC80428(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits
[Insert Name][Insert title]
[Insert phone][Insert email]
TC80429(0614)3For Agent Use Only – Not For Use With The Public
Living Benefits