critical Illness - Life Insurance With Living Benefits

Report
National Life Insurance Company® | Life Insurance Company of the Southwest™
Life Insurance with Living Benefits
“Life insurance you don’t have to die to use”
National Life Insurance Company® | Life Insurance Company of the Southwest™
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require
additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy.
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 NLGroup 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.
00000 MK00000(0000) TC64165(0811)
DIE TO SOON, LIVE TOO LONG, OR
GET SICK…
Consumer Financial Concerns
Disability
Benefits in case
you become
disabled
Cash Value
Accumulation
Money for
Future Plans
Accelerated
Living Benefits
Terminal,
Chronic, or
Critical illness
riders
Life
Insurance
Protection for
your family
DIE TO SOON, LIVE TOO LONG, OR
GET SICK…
Many Consumers Don’t Want to
Pay for Three Different Policies
LTC
Life
$$$ / Month
Is there another alternative?
What Can Happen to You?
You may become Terminally or Critically Ill
HEART ATTACK
About every 34 seconds, someone in the United States has a
myocardial infarction (heart attack).1
STROKE
On average, a stroke occurs every 40 seconds.2
CANCER
A new cancer is diagnosed every 30 seconds in the United States.3
1 in 2 men and women will be diagnosed with cancer in their lifetime.4
“About Heart Attacks” American Heart Association. 12 June 2011. http://www.heart.org/HEARTORG/Conditions/HeartAttack/AboutHeartAttacks/About-HeartAttacks_UCM_002038_Article.jsp (24 April 2012).
2.“Impact of Stoke” American Stoke Association. 18 April 2012. http://www.strokeassociation.org/STROKEORG/AboutStroke/Impact-ofStroke_UCM_310728_Article.jsp (24 April 2012).
3. “Cancer Facts & the War on Cancer” National Cancer Institute. 2012. http://training.seer.cancer.gov/disease/war/ (24 April 2012).
4. “SEER Stat Fact Sheets: All Sites” National Cancer Institute. 2012. http://seer.cancer.gov/statfacts/html/all.html (25 April 2012).
1.
The chance of survival…
Yet, what about financial survival?
1.
2.
• Nearly half of people whose families have
been affected by cancer say the costs of
cancer care were a burden on their family,
including one in six who say such costs
were a MAJOR burden.2
• One in eight people with advanced cancer
turned down recommended care because
of cost.3
• The cost of a severe heart attack –
including direct and indirect costs – is
about $1 million.4
• 1.5 million Americans will declare
bankruptcy
thisPinney
year
and
60%
are due to medical
“Critical Illness Statistics”
Insurance
Center,
2012. http://www.pinneyinsurance.com/critical-illness/statistics.php
(13 April 2012).
“National Survey of Households Affected by Cancer” The USA Today/Kaiser Family Foundation/Harvard School of Public Health, November 2006.
bills.
http://www.kff.org/kaiserpolls/upload/7591.pdf (13 April 2012).
3
Shaw LJ, Merz CNB, Pepine CJ, et al. The Economic Burden of Angina in Women With Suspected Ischemic Heart Disease: Results From the National Institutes of Health
National Heart, Lung, and Blood Institute-Sponsored Women's Ischemia Syndrome Evaluation. Circulation. August 29, 2006 2006;114(9):894-904.
4.
“The Real Risk That You’ll Have a Critical Illness” Facts About Critical Illness Insurance Coverage and Costs, 2012 http://www.criticalillnessinsuranceinfo.org/ (13 April 2012).
What Can Happen to
You?
You may become Chronically Ill
Chronic Illness affects many people and can create
additional expenses for a family. Some of these
expenses may include:
Nursing Home Cost for a Private Room
For nursing home care, the national monthly
average is
now $6,266, which translates into $75,190 annually.
1
Assisted Living Facility
For assisted living facilities the national monthly
average
is now $3,185, which translates into
$38,220 annually.1
Home Health Aide (Certified)
For Home Heath Aide, the national monthly average
is
1. “Cost
now $3,623, which translates into $43,472 annually.
of Care Survey” Genworth 2012.
1
http://www.retirementguard.com/files/library/2010_Cost_of_Care_Survey_Full_Report.pdf
(13 April 2012).
1
The Worst Can Happen.
You may die too soon
The proportion of U.S. adults with life insurance protection has
declined to an all-time low as 41 percent (95 million) of U.S. adults
have no life insurance at all.1
And half of U.S. households now believe they are underinsured.2
•
Think about this…the median income in the USA is roughly
•
$60,000.00…
Given a standard retirement age of 65, what would your
potential earning power be until you reach that age? Let’s
assume a 3% annual growth for inflation, etc….
Age
25
35
45
55
Years Until
Retirement
40
30
20
10
Annual Earnings
$
$
$
$
60,000.00
60,000.00
60,000.00
60,000.00
Income
Replacement
$ 2,400,000.00
$ 1,800,000.00
$ 1,200,000.00
$
600,000.00
With 3% Inflation
Each Year
$
4,524,075.00
$
2,854,524.00
$
1,612,222.00
$
687,832.00
“Facts About Life 2011” LIMRA, 2011. http://www.limra.com/newscenter/pressmaterials/11FOL.pdf (13 April
2012).
2. “Household Trends in U.S. Life Insurance Ownership” LIMRA, 2012.
http://www.limra.com/abstracts/abstract.aspx?fid=10627 (13 April 2012)
1.
ABR: Terminal Illness
Terminal illness is determined by a condition resulting from injury or illness which, as determined by
a physician, has reduced life expectancy to not more than 24 months (12 months in VT & PA).
This rider allows the insured to accelerate up to 100% (max of $1.5 Million) of the policy’s death benefit in
the event of a terminal illness.
National Life Insurance Company® | Life Insurance Company of the Southwest™
Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company
ABR: Chronic Illness
Bathing
Chronically ill is being unable to perform 2 of 6 activities of daily
living (bathing, continence, dressing, toileting, eating, and
transferring) without assistance from another person or being
cognitively impaired.
Dressing
Toileting
Eating
Continence
Transferring
Additional Info:
90 day waiting period
Can accelerate up to 2% of death benefit per month, or 24%
annually
Max lifetime benefit is $1,500,000
The policy must be in-force for 2 years before benefits are
available
*The maximum total amount of lifetime benefits for an
Insured under all Critical and Chronic Illness Benefit
Riders is $1,000,000
National Life Insurance Company® | Life Insurance Company of the Southwest™
Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company
ABR: Critical Illness
• Allows the insured to accelerate his/her death benefit if
they are critically ill
• Critical Illness includes diagnosis of cancer, heart
attack, stroke, ALS, kidney failure, major organ
transplant & blindness
• 30 day waiting period
• Max lifetime benefit is $1,000,000
*The maximum total amount of lifetime benefits for an Insured under all Critical and
Chronic Illness Benefit Riders is $1,000,000
National Life Insurance Company® | Life Insurance Company of the Southwest™
Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company
Male 45
$1,000,000
Face Amount
National Life Insurance Company® | Life Insurance Company of the Southwest™
Expenses
What normally
Income
happens when
you suffer a
Critical or Chronic
Illness?
Income Vs Expenses
Additional Income
From Living Benefits!!!
Your Family’s Income
DEBT
Time off
Work
Recovery
Time
Your Family’s Expenses
Deductibles
Co-Pays
Income Vs Expenses
48 - 48 - 60
What do these numbers mean?
48% of mortgage foreclosures are the result of
financial hardship due to critical Illness (only 3%
due to death).1
48% of businesses that fail, fail because of a
critical illness.2
60% or more of all bankruptcies are directly tied
to medical conditions such as critical illnesses,
and around 80% of the individuals were already
covered by health insurance.3
1.
Get Sick, Get Out: The Medical Causes of Home Foreclosures" Health Matrix, 2008.
Goldstein, Mark, “Critical Illness Insurance 101” http://ezinearticles.com/?Critical-Illness-Insurance101&id=4450375 (13 April 2012).
3. “More People are Surviving Critical Illnesses…” United States Critical Illness Insurance Resource Center,
2012. http://criticalillnesspolicies.com/insurance-coverage/critical-illness-statistics/ (13 April 2012).
2.
ALLIANCE GROUP
TESTIMONIAL VIDEO
The Dudley’s
Check out our website to view testimonials:
www.anallianceforlife.com
National Life
• Founded in 1848
• Montpelier, VT
• National in Scope
We Are Financially Strong
A.M. Best
Standard &
Poor’s
Moody’s
A (Excellent)
Third highest out of 16 ranking
A (Strong)
Sixth highest of 21 rankings
A2 (Good)
Sixth highest of 21 rankings
Financial Strength ratings for National Life Insurance Company and Life Insurance Company of the Southwest
Ratings are current as of March 31, 2012 and are subject to change.
Term Insurance with Living Benefits
“Life insurance you don’t have to die to use”
National Life Insurance Company® | Life Insurance Company of the Southwest™
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require
additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy.
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 NLGroup 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.
00000 MK00000(0000) TC64165(0811)
Level Premium TERM
With Living Benefits
With LSW's term insurance, you can
be prepared to meet your family’s major life
event needs under a single, affordable life
insurance policy. It’s a revolutionary solution
we call…
LIFE INSURANCE YOU DON’T HAVE
TO DIE TO USE
LSW Term
•
•
•
•
Middle to upper middle market
10, 15, 20, and 30 year term periods (G & NG)
Minimum face amount - $50,000
Good for the conversion policy and Mortgage Protection
Sales
• Not good for a long term solution sale but good
temporary product
Term Period
Issue Ages
• Oral 10
Swab
50, $100k thru 60, and $50k
Year Gup to $200k thru18-75
thru 70
15 Year G & NG
18-70
20 Year G & NG
18-65
30 Year G & NG
18-50
LSW Term
LSW IUL’s: WHY IUL? WHY NOW?
LSW Fixed UL Products
LSW IUL’s: WHY IUL? WHY NOW?
LSW Foundation UL
•
•
•
•
•
•
Middle to upper middle market
Current fixed rate of 5%
Issue ages 0-85
Minimum face amount - $25,000
15-year surrender charge period
Good for the low MMP sales and Mortgage Protection
Sales
• Not good for a long term solution sale
• Oral Swab up to $200k thru 50, $100k thru 60, and $50k
thru 70
LSW IUL’s: WHY IUL? WHY NOW?
LSW Income Builder UL
•
•
•
•
•
•
•
•
•
Middle to upper middle market and high income earners
Current fixed rate of 5.35% and a Guarantee of 3%
Issue ages 0-85
Minimum face amount - $100,000
15-year surrender charge period
Good for Endowment Sales
Good for a long term solution sale
.5% Int rate enhancement in year 6 and a .6% in year 21
Full Medical product
LSW IUL’s: WHY IUL? WHY NOW?
LSW Indexed UL Products
LSW IUL’s: WHY IUL? WHY NOW?
Interest Crediting Strategies
•
•
•
•
Basic
Fixed
Point-to-Point, Cap Focus, S&P
Point-to-Point, Participation Rate Focus,
S&P
• Point-to-Point, no Cap, S&P
• Point-to-Average, no Cap, S&P
• Point-to-Point, MSCI Index
LSW IUL’s: WHY IUL? WHY NOW?
SecurePlus® Provider
•
•
•
•
•
•
Middle to upper middle market
Upside potential without the risk of losses
Issue ages 0-85
Minimum face amount - $25,000
4 interest crediting strategies
1.25% Annual Account Value Enhancement starting at
year 10
• 10-year surrender charge period
• Lifetime Income Benefit Rider
• No routine medical testing up to $250k age 65 &
under
LSW IUL’s: WHY IUL? WHY NOW?
Underwriting Program – No Routine
•
•
•
•
•
•
Medical Testing
Face Amount must be $250,000 or less
Client must be age 65 or younger
Rate Class Available
• Verified Standard NT
Applies to base policy insured and
• Express Standard NT
OIRs
• Standard Tobacco
All substandard risk classes are available
Faster processing 4 – 7 days
Standard at best
No option to be underwritten for
Preferred
This is not a guaranteed issue program. The company reserves the right to require additional requirements as deemed necessary.
LSW IUL’s: WHY IUL? WHY NOW?
SecurePlus® Provider
October 10, 2012
Part. Rate
Cap
Illus. Rate
Point to Point
(Cap Focus)
100%
10.50%
7%
Point to Average
90%
None
5.90%
Point to Point
(Prt Rate Focus)
140%
10%
7.10%
Point to Point - MSCI
100%
9.50%
6%
Basic Strategy - 4.50%
Variable Loan Rate – 4.50%
Fixed Term Strategy – 4.50%
LSW IUL’s: WHY IUL? WHY NOW?
LSW FlexLife
•
•
•
•
•
•
•
•
•
4th Generation IUL
Upside potential, no risk for loss
Business or affluent/emerging affluent clients
Issue ages 0-85
Minimum Face: $100,000
5 interest crediting strategies
Price banding at $250k, $1MM, and $3MM
Account value enhancement of .35% beginning in yr 10
10 yr surrender period
Lifetime Income Benefit Rider
LSW IUL’s: WHY IUL? WHY NOW?
LSW FlexLife
October 10, 2012
Part. Rate
Cap
Illus. Rate
Point to Point
(Cap Focus)
100%
13%
8.10%
Point to Point
(Part. Rate Focus)
140%
11.50%
8%
Point to Point
(No Cap)
63%
None
8%
Point to Average
115%
None
7.50%
Point to Point - MSCI
100%
11.50%
7%
Basic Strategy – 4.75%
Variable Loan Rate – 4.50%
Fixed Term – 5.25%
Consumer Financial Concerns
Disability
Benefits in case
you become
disabled
Cash Value
Accumulation
Money for
Future Plans
Accelerated
Living Benefits
Terminal,
Chronic, or
Critical illness
riders
Life
Insurance
Protection for
your family
National Life Insurance Company® | Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
Lifetime Income Benefit Rider
Income For Life – Guaranteed
Once conditions* are met and the rider is exercised.
*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 age 60
and 85, and that the policy has been inforce for at least 10 years (15 years for SecurePlus Provider). Insufficient policy values, outstanding policy loans and other considerations may
also restrict exercising the rider. Receipt of income benefits will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their benefits. There is a
monthly charge from the accumulated value during the income payment period. Guarantees are dependent upon the claims-paying ability of the issuing company.
National Life Insurance Company® | Life Insurance Company of the Southwest™
LIBR – Giving Your Clients More Flexibility
• Now available on all IUL products
– NL and LSW Flex Life
– NL and LSW LifeCycle Solution
– LSW Advantage 79
– NL Ultra Select
– LSW SecurePlus Provider
*Including LSW SecurePlus Paragon
National Life Insurance Company® | Life Insurance Company of the Southwest™
Also
available
on
in-force*
Lifetime Income Benefit Rider
National Life Insurance Company® | Life Insurance Company of the Southwest™
Introducing a Whole
New Way of Life
Product Introduction & Enhancements
Products issued by National Life Insurance Company® | Life Insurance Company 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 National Life 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.
TC70222(0912)
For Agent Use Only - Not for use with the Public.
What Is Whole Life?
• Whole life is a type of permanent life insurance.
• How is it different?
o Guarantees!1
 guaranteed death benefit
 guaranteed cash value accumulation
 guaranteed premiums
…for the whole life of the insured
1
Guarantees are dependent upon the claims-paying ability of the issuing company.
Products issued by National Life Insurance Company® | Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
Why Whole Life?
“The biggest
driver behind
both total
premium and
policy count
growth
continues to be
Whole Life.
It remains very
attractive to
consumers looking
for security of
premium and cash
value guarantees
along with lifetime
coverage”
– Ashley Durham, Sr.
Analyst, LIMRA 2012
Products issued by National Life Insurance Company® | Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
LSW ProtectorLife – Guarantees*
• Guaranteed Death Benefit
• Guaranteed Level Premium
• Guaranteed Cash Value
*Guarantees are dependent upon the claims-paying ability of the issuing company.
Products issued by Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
LSW ProtectorLife – Availability
• Issue Ages: 0-85 Age nearest birthday
• Minimum Face Amount: $25,000*
• Maximum Face Amount: $500,000**
• 7 Rate Classes; No table ratings
o Preferred Non-Tobacco
o Verified Standard Non-Tobacco
o Express Non-Tobacco 1
o Express Non-Tobacco 2
o Preferred Tobacco
o Verified Standard Tobacco
o Express Tobacco
*The minimum base face will be lower when an Automatic Conversion Rider is on the policy.
**No $500,000 face limitation for all policies sold inside Qualified Plans
Products issued by Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
LSW ProtectorLife – Underwriting
Convenience
• No routine medical testing required for a face amounts of
$250,000 or less and age 65 or younger.
• Ease of doing business is important to us, and it’s just as
important to your clients.
• Not available on Preferred Class Ratings
Products issued by Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
LSW ProtectorLife – Living Benefits
Accelerated Benefit Riders
• Terminal Illness
• Chronic Illness
• Critical Illness
Receipt of accelerated benefits will reduce the cash value and death benefit, may
be a taxable event and may effect eligibility for public assistance programs.
For Agent Use Only - Not for use with the Public.
LSW ProtectorLife – Family Protection
Other Insured Rider
• Covers the insured’s spouse or civil union partner
• 20 year level term with increasing premiums after year 20
• Convertible
• Issue ages for Rider: 20-65 (Preferred & Standard Rate Classes)
20-60 (Express Standard Rate Classes)
• Minimum Face Amount for Rider: $25,000
• Maximum Face Amount For Rider: Policy Face Amount
(combination WL/ACR face amount)
Children’s Term Rider
• Up to $25,000 of coverage on each Child
Products issued by Life Insurance Company of the Southwest™
For Agent Use Only - Not for use with the Public.
SW Sales Desk
800.906.3310
Life (Option #1)
Annuities (Option #2)
Sales Desk
2014 ALLIANCE
CONFERENCE
For Agent Use Only - Not for use with the Public.
Lee Duncan
Vice President and National Training Director
[email protected]
888.969.9233 or c 678.910.0551
Peter Goldfine
National Marketing & Social Media Director
[email protected]
888.969.9233 or c 678.282.7819
Jessica Myers
Distribution Relationship Manager
NATIONAL LIFE GROUP
[email protected]
802.229.3823 or c 802.249.6298
For Agent Use Only - Not for use with the Public.

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