living_benefits_consumer_presentation
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1) The document discusses life insurance products that provide living benefits through accelerated benefit riders that allow policyholders access to a portion of the death benefit if they are diagnosed with a terminal illness, chronic illness, or critical illness. 2) It provides statistics on the likelihood of being diagnosed with conditions covered by the riders like cancer and outlines the qualification criteria and payout structures for the different rider types. 3) Examples are given showing how much money a policyholder could receive through the accelerated benefit riders for terminal illness, chronic illness, and critical illness claims depending on their age and policy details.
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living_benefits_consumer_presentation
- 1. Life Insurance with Living Benefits Products issued by National Life Insurance Company | Life Insurance of the Southwest National 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)3 For Agent Use Only – Not For Use With The Public
- 2. What is it? Living benefits Life Insurance You Don’t Have To Die To Use TC80407(0614)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 3. Statistics Don’t Lie What are the chances of YOU 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)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 4. Statistics Don’t Lie What are the chances of YOU being diagnosed with Cancer? TC80408(0614)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 5. 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)3 For Agent Use Only – Not For Use With The Public Living Benefits Life Insurance With Accelerated Benefits Riders
- 6. 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)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 7. Accelerated 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 Benefits Available on National Life and LSW Policies
- 8. 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
- 9. Assumptions: •Male Age 45, Standard N/S; N/T •$500,000 Death Benefit •FlexLife •Benefit Summary Age 65 $431,629 at Age 65 Based on nonguaranteed assumptions. Actual values may be higher or lower than shown. 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
- 10. • 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 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
- 11. Assumptions •Male Age 45, Standard N/S; N/T •$500,000 Death Benefit •FlexLife; Monthly Basis $7,338 Lump Sum Benefit $366,922 Based on nonguaranteed assumptions. Actual values may be higher or lower than shown. 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
- 12. • 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 Illness Qualifying 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 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
- 13. Live A Life You Love: The Jessica Story
- 14. I Was The Other Guy: The Bob Curry Story
- 15. Assumptions: •Male Age 45, Standard N/S; N/T •$500,000 Death Benefit •FlexLife; $409,469 Category 4 Life Threatening Based on nonguaranteed assumptions. Actual values may be higher or lower than shown. 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
- 16. Things to Consider About ABR Benefit Payment First time in our lives that we are able to benefit from our death coverage on our Life Insurance Policy 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)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 17. In Summary Living benefits Life Insurance You Don’t Have To Die To Use TC80407(0614)3 For Agent Use Only – Not For Use With The Public Living Benefits
- 18. Donald I. Duerme National Managing Director WealthSmart America 858-610-1975 libronduerme.WSA@gmail.com TC80429(0614)3 For Agent Use Only – Not For Use With The Public Living Benefits
Editor's Notes
- Hi, I am NAME, TITLE with National Life Group. Today I’d 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 family’s 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 stroke People who reach age 60 have a 40% change of entering a nursing home The 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.
- 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 stroke People who reach age 60 have a 40% change of entering a nursing home The 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 a Terminal Illness Chronic Illness Critical Illness The 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 expenditures Medical procedures Experimental treatments Reimbursing a family member for their assistance (Limitations apply in MA for chronic illness)
- Not all products offer all three ABR’s. 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 Illness If 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 ILLNESS In 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 ABR’s 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 ILLNESS To 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 (ADL’s) Bathing Continence Dressing Eating Toileting Transferring or required substantial supervision to protect oneself from threats to health and safety due to severe cognitive impairment. Short-term or long-term memory impairment Loss of orientation to people, places or time Deductive or abstract reasoning impairment NOTE: 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.
- Let’s 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 ILLNESS To 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 $1,000,000 Critical 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.
- Not all products offer all three ABR’s. 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 Illness If your policy is rated, critical illness will not be available.
- 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 family’s 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
- 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.