Life Insurance with Living Benefits Products issued by National Life Insurance Company | Life Insurance of the Southwest National Life Group is a trade.

Download Life Insurance with Living Benefits Products issued by National Life Insurance Company | Life Insurance of the Southwest National Life Group is a trade.

Post on 18-Jan-2016

220 views

Category:

Documents

0 download

TRANSCRIPT

Life Insurance with Living BenefitsProducts 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 YorkTC80406(0614)3For Agent Use Only Not For Use With The PublicWhat is it?Living benefitsLife Insurance You Dont Have To Die To UseTC80407(0614)3For Agent Use Only Not For Use With The PublicStatistics Dont LieWhat are the chances of experiencing one of these events?American Heart Association, American Stroke Association, Heart Disease and Stroke Statistics, 2012 updateMedicare, US Dept. of Health and Human Services, 2012TC80408(0614)3For Agent Use Only Not For Use With The PublicLeverage the power of ABRs in the event of a qualifyingTerminal IllnessChronic IllnessCritical IllnessAccelerated 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 clients eligibility for public assistance programs. TC80409(0614)3For Agent Use Only Not For Use With The PublicLife Insurance With Accelerated Benefits RidersThings to Consider About Accelerated Benefits RidersABRs 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 PublicAccelerated 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 clients 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)3For Agent Use Only Not For Use With The PublicAvailable on National Life and LSW PoliciesLife Insurance With Accelerated Benefit RidersInsured 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 sumBenefits can be used for anythingMaximum lifetime benefit is $1,500,000Receipt 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 clients 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)3For Agent Use Only Not For Use With The PublicAssumptions:Male Age 45, Standard N/S; N/T$500,000 Death Benefit$9,174 PremiumFlexLife; Basic Strategy4.75%100% P-tP CapFocus 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 RidersReceipt 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 clients 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)3For Agent Use Only Not For Use With The PublicExample of Terminal Illness BenefitA 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 IllnessUnable to perform two of six Activities of Daily Living or cognitive impairmentWaiting period*Life Insurance With Accelerated Benefit RidersReceipt 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 clients 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)3For Agent Use Only Not For Use With The PublicAssumptionsMale Age 45, Standard N/S; N/T$500,000 Death Benefit$9,174 PremiumFlexLife; Basic Strategy4.75%100% P-tP CapFocus 8.10%Life Insurance With Accelerated Benefit RidersReceipt 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 clients 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)3For Agent Use Only Not For Use With The PublicExample of Chronic Illness BenefitTo qualify for Critical Illness, the insured must have or have had one of the listed conditionsWaiting period*:90 Days for NL30 Days for LSWMaximum lifetime benefit is $1,000,000Critical IllnessQualifying Conditions*Heart attackStrokeCancerEnd state renal failureMajor organ transplantALS (Lou Gehrigs disease)Blindness*state specials apply check your policy form for state specific information.Life Insurance With Accelerated Benefit RidersReceipt 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 clients 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)3For Agent Use Only Not For Use With The PublicAssumptions:Male Age 45, Standard N/S; N/T$500,000 Death Benefit$9,174 PremiumFlexLife; Basic Strategy4.75%100% P-tP CapFocus 8.10%$409,469Category 4 Life ThreateningBased on nonguaranteed assumptions. Actual values may be higher or lower than shown.Life Insurance With Accelerated Benefit RidersReceipt 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 clients 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)3For Agent Use Only Not For Use With The PublicExample of Critical Illness BenefitHow does it work?Why should you care?Life Insurance With The Lifetime Income Benefit RiderWhat is it?TC80418(0614)3For Agent Use Only Not For Use With The PublicTax-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.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 insureds 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 policys 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)3For Agent Use Only Not For Use With The PublicLife Insurance With The Lifetime Income Benefit Rider1Assumes Non-MEC PolicyHow It WorksRiders 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)3For Agent Use Only Not For Use With The PublicLife Insurance With The Lifetime Income Benefit RiderLevel Income OptionFor Agent Use Only Not For Use With The PublicIncreasing Income OptionFor Agent Use Only Not For Use With The PublicLife Insurance With The Lifetime Income Benefit RiderTC80422(0614)3For Agent Use Only Not For Use With The PublicMust 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 RiderTC80423(0614)3For Agent Use Only Not For Use With The PublicNo rider charge deducted Premium payments Increases / Decreases Loans and WithdrawalsGuaranteed if: No face amount increases No partial withdrawals No loansRiders 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)3For Agent Use Only Not For Use With The PublicLife Insurance With The Lifetime Income Benefit RiderTraining MaterialsTC80428(0614)3For Agent Use Only Not For Use With The Public[Insert Name][Insert title] [Insert phone] [Insert email]TC80429(0614)3For Agent Use Only Not For Use With The PublicHi, I am NAME, TITLE with National Life Group.Today Id like to share with you an overview of our life insurance product offerings by the issuing companies of National Life Group. In the process I think you will realize why will want to write business with us!**The death benefit that life insurance provides can help protect what your clients care about most if they were to pass away. Beyond the emotional devastation, the loss of the familys primary income earner can be financially devastating as well.But what if that financial devastation occurs while the primary income earner is still alive? I love this picture*The chances of experiencing one of these severe and possibly financially devastating illnesses may be greater than you think.Did you know that every 29 seconds some will suffer a coronary event, and about every minute someone will die from it?Every 45 seconds someone will have a strokePeople who reach age 60 have a 40% change of entering a nursing homeThe great news is, you have solutions you can offer clients in the event of the very real challenge of a terminal, chronic or critical illness. While other companies may offer similar benefits, combined we have no peer that can offer all of these benefits. **Lets take a look at what these benefits are, and how they work.Accelerated Benefit Riders allow the policyholder to access the death benefit, with a qualifying illness during their lifetime, in the even the insured incurs aTerminal IllnessChronic IllnessCritical IllnessThe policy owner has full discretion on how the benefits are used. Benefits can generally be used for anything the are not limited to unreimbursed expenses. They can be used for:Quality of life expendituresMedical proceduresExperimental treatmentsReimbursing a family member for their assistance(Limitations apply in MA for chronic illness)**Not all products offer all three ABRs. We advise that you check rider availability for each product your are considering.For survivorship policies, the ABRs are not available until after the first death.Not all ABRs are approved in all states and some states have different provisions. i.e. 12 months vs 24 months on Terminal IllnessIf your policy is rated, critical illness will not be available.**Here is a high level look at the ABRs available on our policies, and the qualifications for exercising them . Keep in mind that many states have slightly different definitions for each rider, so please check the ABR Agent Guide, or your policy form for state specific information.**TERMINAL ILLNESSIn order to qualify for Terminal Illness the insured must be diagnosed with a terminal illness and the condition must be expected to result in death within 24 months.The definition of life expectancy to qualify for the rider is 12 months in several states. Refer to the web for state specials.The client can accelerate all or a portion of the discounted death benefit and the benefit is received in a lump sum. Once the insured qualifies, benefits can be used for anything. With a maximum lifetime benefit for all ABRs of $1,500,000.If you look at our competition 24 month life expectancy for Terminal Illness is very liberal. Most other companies require 12 months.**Review example**CHRONIC ILLNESSTo qualify for the Chronic 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) BathingContinenceDressingEating ToiletingTransferringor required substantial supervision to protect oneself from threats to health and safety due to severe cognitive impairment.Short-term or long-term memory impairmentLoss of orientation to people, places or timeDeductive or abstract reasoning impairmentNOTE:LSW ABR Maximum monthly benefit calculated as @% of the net death benefit (actual payment is discounted) each month or 24% annually (not to exceed the IRS annual per diem aount (2013 - $116,800) with a total discounted lifetime payout not to exceed $1,500,000)NLIC ABR Maximum annual benefit is the IRS Annual Per Diem Amount; 2013 = $116,800. Total lifetime payout not to exceed $1,500,000 ($2,000,000 in New York) Maximum Lifetime Acceleration: 100% of death benefit up to $1 million combined maximum per life under all other accelerated benefit riders.There is no acceleration permitted under ABR 2 for the first two years that the rider is in effect.The Chronic Illness benefit is not offered by many companies, it sets us apart.**Lets look at another client, same assumptions as before If this were accelerated on a monthly basis he would receive $7,338 per month.If he went for the Lump Sum benefit his payment would be $366,922. Lump sum is not available in MA.**CRITICAL ILLNESSTo qualify for Critical Illness, the insured must have or have had one of the conditions we have listed.No acceleration is permitted under ABR 3 for the first 30 days that the rider is in effect.Critical illness is underwritten at the time the rider is requested. If the policy has a rating, the rider will not be issued.Benefits are paid in a lump sum. Maximum lifetime benefit is $1,000,000Critical Illness is a very uncommon rider in our markets.**Our client wants to accelerate the Critical Illness Benefit instead. At age 65 he could expect a $409,469 benefit. This is assuming he was classified as a category 4 life threatening. If he was classified as a lower category, the benefit would be smaller.Note that this does not mean he still has the ability to accelerate the death benefit for another terminal, chronic and critical illness. Once a policy is fully accelerated it is terminated.**Next I would like to share with you the Lifetime Income Benefit Rider.First lets go over the Rider.Second Lets talk about why you should care: what it is and how it can help one of your clients challenges.Third We will go over how the rider works, and why its such a great tool to be out there talking about. **Life insurance provides your clients with valuable survivor protection in the case they Die Too Soon, but what if they live too long?If properly funded, an indexed universal life insurance policy with the LIBR rider can be a great tax-advantaged resource for retirement. LIBR benefits are received through loans which reduce your clients policy values.After minimum thresholds are met, benefit payments will continue as fixed Net Cost loansInterest in the amount of the benefit payments will be credited to the basic strategy Loans are received income tax-free, so your clients benefits will now be TAX FREE for their lifetime, because policy loans are income tax free, as long as the policy is not a MEC.**So how does it workHere we show that we are making annual premium payments, the cash value is growing and we have a level death benefitOnce certain conditions are met, such as the insureds attained age being between age 60 and 85, that the policy has been inforce at least 10 years (15 years for LSW SecurePlus Provider), there are no outstanding loans, and there must be sufficient policy values, then the LIBR Rider can be exercised.At the time we elect the Lifetime Income Benefit, the death benefit and cash value are decreased by the benefit payments.Benefit payments are made by loans against the cash value. So once qualifications are met, since policy loans are received tax-free, that means that LIBR payments are guaranteed to continue tax-free for life as long as the policy is not a modified endowment contract.Once the policy values reach the threshold, leaving a guaranteed minimum cash value of $1,000 and a guaranteed minimum face amount of $15,000, the company will deposit the payments into the policy so LIBR payments remain tax-free.*Once your client is ready to start their benefit payments, there is one other thing to take into consideration. Which income option will they choose? Option 1 is the level income option. This begins with higher payments, but they will not increase annually. This may be better for your clients who want more income now due to health or other concerns.There is a ratchet feature that resets the income base at the end of every fifth LIBR anniversary during the income period. At that time if the cash surrender value is higher than it was on the previous recalculation date, the income base will be increased to equal the higher cash surrender value. The benefit payments will then be recalculated using the adjusted income base. If the cash surrender value is lower than it was on the previous recalculation date, the income base will not be reduced.*Option 2 is the increasing income option. This starts with lower premiums, but they will increase every year. This increase will continue until the minimum threshold value is reached and the cash surrender value is exhausted, after which the annual Guaranteed Income Payment will remain level.This option often ends up paying out more over the long term, so your clients who think they have more long term needs might be more inclined to this option.Note: the ratchet feature discussed previously is available on the incresing income option as well.*No Policy Charge Until Rider is Elected0.65% Annual Asset Charge Once Income Benefit Payments BeginOnce income benefit payments are elected, they are guaranteed for life even if the income payments deplete the cash surrender value.Once income benefit starts, policy is guaranteed not to lapse. This assumes that policyholder does not elect to stop income payments under the LIBR rider. If policyholder elects out of LIBR, and takes other policy loans or withdrawals, or accelerates under the ABR riders, policy may be at risk of lapse. There could be substantial tax consequences if the policy were allowed to lapse at this point, or if it were surrendered.$15,000 Minimum Residual Death Benefit$1,000 Minimum Residual Cash Surrender ValueNo Additional Premium Payments are Allowed After Income Benefit is Elected, unless benefits are suspended.No Additional Policy Loans or Withdrawals can be Taken while LIBR benefits are being received, unless benefits are suspended.Available on Death Benefit Option BIncome % is 0.75% lower than Death Benefit Option AIncome Payment Modes Available (A, S, Q, M) *When you want to start receiving your LIBR benefit payments, you must elect to do so.Must be between the ages of 60 to 85Minimum Waiting Period of 10 Policy Years (or 10 Years from Last Face Amount Increase)15 years for LSW SecurePlus ProviderMust Meet Maximum Death Benefit RatioModal Income Payment Must be $100Outstanding Policy Loans Must be Repaid in FullPolicy Cannot be Owned by a Qualified Pension or Profit Sharing Plan at Time of Income Election.*Life insurance provides your clients with valuable survivor protection in case they Die too soon, but what if they live too long?If properly funded, an indexed universal life insurance policy with the LIBR Rider an be a great tax-advantaged resource for retirement. Once certain conditions are met, such as the insureds attained age being between 60 and 85, that the policy has been inforce at least 10 years (15 for LSW SecurePlus provider), there are no outstanding loans, and there must be sufficient policy values, then the LIBr rider can be exercised. Once started, and with no other changes, LIBr payments are guaranteed for your clients life. But what if they need to stop payments, what happens?You Can Start, Stop and Restart Benefits(stop - red)When stopping the benefit payments, no rider charge will be deducted.(yellow)While your payment are stopped, you can make additional premium payments, increases or decreases to your face amount, take partial withdrawals or loans and make loan repayments during the suspension period.(green restart)You can resume income payments as long as the minimum threshold has not been reached and if certain conditions are met, including, but not limited to the insureds attained age being less than 85.Once guarantees are restarted, they are guaranteed to be at least as much as your previous benefit payments as long as there have been no face amount increases, partial withdrawals or policy loans.*Perhaps add in here the new marketing resources, but not sure yet. *We have a few minutes left if you have any additional questions.{Pause answer questions as time allows}To Learn More you can always go onto the National Life Group website. Or feel free to give me a call at anytime.*

Recommended

View more >