Agent Reference Guide

Transcription

1 Agent Reference Guide For Guaranteed Cost or Price Estimate Only Funeral Planning SM Forethought Encore Advance Whole life insurance issued by Forethought Life Insurance Company FOR AGENT USE ONLY NOT FOR USE WITH CONSUMERS

2 Product Features Forethought Encore Advance SM Issue Ages 0-99 Initial Face Amount/Premiums 1 $500 - $25,000 Payment Plans 2 Payment Frequency Payment Methods Death Benefit Current Interest Rate Surrender Charges Policy Delivery Backdating Single Premium 3 Pay 5 Pay 7 Pay 10 Pay Monthly, Quarterly, Semi-annually, Annually APA, Check, Credit Card, Coupon Book Full coverage from date of policy issue for single pay plans 3 Full coverage or graded death benefit coverage with limited benefits for one to two years depending on answers to health questions Discretionary growth applied quarterly Not applicable Policies are mailed directly to the owner Allowable up to 6 months if it reduces premiums Free Look Period Contract may be returned within 30 days To ensure consumers have adequate time to receive and review their contracts, we allow 90 days from issue to make any changes to the contract 1 Total premium contributions over $25,000 require management approval. Maximum premium is the lesser of the funeral amount or $25, Premium payment plan availability may vary by state and/or age. 3 Some products may be subject to a 6 month delay.

3 Underwriting and Health Questions UNDERWRITING Field underwritten No medical exam required Underwritten (first day) coverage - If death occurs within the first two years then it is contestable - If the insured answers no to all health questions and physically signs the application/enrollment form Graded death benefit coverage - Limited benefits for one to two years - Full coverage is provided for accidental death on multi-pay plans HEALTH QUESTIONS Question #1 Question #2 Are you currently confined to a hospital, hospice, nursing home (including custodial care) or other such facility; or, within the past twelve months, have you been told by a medical practitioner that you should be confined but have chosen not to follow that instruction? During the last five years have you been diagnosed as having, or have you received active treatment from a medical practitioner for any of the following: (Review medical descriptions/disorders list on following pages.) 2

4 Death Benefits UNDERWRITTEN COVERAGE Full first day coverage from date of policy/certificate issue Single payment plan (Ages 0 99) Available if health questions 1 and 2 on application/enrollment form are answered NO by the proposed insured. First six month s coverage = premium paid. 6 Upon six month anniversary, full face amount coverage becomes effective. Multiple payment plans Available if ALL health questions on application/enrollment form are answered NO by the proposed insured. Applies on preferred rate plans (Ages 0-70) if all health questions on application/enrollment form are answered NO by the proposed insured. 7 Full face amount is effective from the issue date of the policy/certificate. Note: Health questions are to be completed by the insured only, and the insured must sign the application/enrollment form for first day coverage. If death occurs during first two years from date of issue, the policy/certificate is contestable. GRADED DEATH BENEFIT COVERAGE Multiple payment plans Limited benefits for one to two years. Graded death benefit coverage is issued if proposed insured answered YES to health questions 1 or 2 on application/enrollment form. Full coverage is provided for accidental death on multiple payment plans. Graded death benefit coverage for multiple payment plans Months 3-pay 5-pay 7 & 10-pay Months % of PREMIUMS PAID 105% of PREMIUMS PAID 105% of PREMIUMS PAID Months % of original face amount 105% of PREMIUMS PAID 105% of PREMIUMS PAID Months % of face amount 70% of original face amount 110% of PREMIUMS PAID Months % of face amount 100% of face amount 100% of face amount This is a summary of selected contract provisions and is provided for informational purposes only. It is not part of the policy/certificate or contract. Coverage becomes effective once the policy/certificate or contract is issued while the insured is living and the first premium has been paid. Please refer to the policy/certificate or contract for complete terms and conditions. Please advise your client to review it carefully. 6 Varies by product. Preferred rate single pay equals full amount. 7 Preferred rates not available for all products. 3

5 Medical Descriptions/Disorders The following descriptions are examples of specific types of disorders that fall under the disorders listed on the application for insurance/enrollment form. These examples are not intended to be an exhaustive list. If you have any questions regarding a specific disorder, please call Forethought Life Insurance Company. 1 AIDS/ARC The applicant must have been diagnosed and/or treated for AIDS (Acquired Immune Deficiency Syndrome) or ARC (Aids Related Complex). HIV is not a relevant diagnosis. 2 CANCER includes but is not limited to: Metastasis Lymphoma Carcinoma Sarcoma Adenocarcinoma Multiple Myeloma Leukemia Malignant Melanoma Any internal cancer or cellular malignancy Oncology Disorder Hodgkin s disease 3 KIDNEY DISORDERS includes but is not limited to: Pyelitis Nephritis Nephropathy Nephroptosis Phelonephritis Nephrosclerosis Dialysis Renal Failure Polycystic Renal Disease Renal Insufficiency 4 BLOOD DISORDERS includes but is not limited to: Hemophilia Leukemia Lymphoma Aplastic Anemia Blood Transfusion (due to anemia) Von Willebrand Sickle Cell Anemia Thrombocytopenia 5 CIRCULATORY DISORDERS includes but is not limited to: Arteriosclerosis Thrombosis Carotid Artery Disease Hemorrhage Atherosclerosis Aneurysm Peripheral Vascular Disease 6 LIVER DISORDERS includes but is not limited to: Hepatitis Cirrhosis of the Liver Liver Failure Hepatoma Liver Transplant 7 BRAIN/NERVOUS DISORDERS includes but is not limited to: Epilepsy Myasthenia Gravis Transient Ischemic Attack (TIA) Cerebral Embolism Seizure Disorder Huntington s Disease Cerebral Palsy Stroke Muscular Dystrophy Alzheimer s/dementia Quadriplegia Cerebral Vascular Accident (CVA) Down s Syndrome Meningioma Amyotrophic Lateral Sclerosis (ALS)/ Multiple Sclerosis Cerebral Hemorrhage Lou Gehrig s Disease Parkinson s Disease Encephalitis Mental Retardation (MR) is a disability characterized by significant limitations both in intellectual functioning and in adaptive behavior as expressed in conceptual, social, and practical adaptive skills. MR is not a medical or mental disorder but if the individual is in a custodial care facility, unable to care for themselves, or diagnosed with other medical conditions contributing from MR, then MR would be considered a medical disorder. 4

6 8 HEART DISORDERS includes but is not limited to: Aortic Stenosis Angina Pectoris Heart Transplant Ischemic Heart Disease Valvular Disease Heart Valve Replacement Congestive Heart Failure Pacemaker Atrial Fibrillation or Flutter Heart Attack Myocardial Infarction Bypass Surgery Coronary Occlusion Arteriosclerotic Heart Disease Angioplasty Coronary Insufficiency Congenital Heart Disease Stent Placement Hypertensive Heart Disease Coronary Artery Disease Cardiomyopathy Rheumatic Heart Disease Defibrillator Tachycardia Hypertension (high blood pressure) We do not consider hypertension a heart disorder if it is controlled and managed within acceptable limits through diet, exercise and medication. However, if it is uncontrollable through normal treatment, or if the applicant has hypertensive crises, then hypertension should be considered a heart disorder. Note: If an insured has had bypass surgery, heart attack or any type of heart procedure, no matter how many years prior, they will need to answer yes to question #2 on the application for insurance/enrollment form. This is due to the fact that the insured will be diagnosed with coronary artery disease at that time and he/she will carry that diagnosis in the medical file until their demise. 9 LUNG DISORDERS includes but is not limited to: Emphysema Pulmonary Edema Tuberculosis Chronic Pneumonia Chronic Respiratory Disorder Pulmonary Sarcoidosis Chronic Bronchitis Pulmonary Fibrosis Bronchiectasis Chronic Obstructive Pulmonary Pulmonary Embolism Cystic Fibrosis Disease (COPD) Pneumoconiosis Lung Transplant Asthma is a disease of the respiratory system. This disorder is a chronic or recurring inflammatory condition. We do not consider asthma a lung disorder if it is intermittent and controlled by bronchodilators, but if asthma becomes a chronic respiratory impairment or severe persistent asthma associated with other lung/respiratory conditions, then asthma will be considered a lung disorder. 10 INSULIN DEPENDENT DIABETES Diabetes is a medical disorder characterized by persistent variable hyperglycemia (high blood sugar) levels. We do not consider diabetes to be a disorder if it is well controlled with only diet, exercise and/or oral medication (i.e., Type II). However, any use of insulin to control this condition (i.e., Type I) will cause the condition to be considered a disorder. Please call the Customer Service at (800) with any questions you may have regarding the above information. 5

7 Completing the Application/Enrollment Form The Forethought Encore Advance application/enrollment form facilitates the purchase of Forethought whole life insurance coverage. It is an easy to complete, one page application. The following instructions are intended to represent the typical fields required to be completed in most states. State variations may require additional information. Be sure to send all copies and a check made payable to Forethought Life Insurance Company in the postage paid envelope or fax all copies and a voided check to Forethought at (855) INSTRUCTIONS Section 1-2: Complete applicable personal information. Social Security number is required. Section 3: Provide the funeral amount, the face amount, premium amount, payment plan and payment mode. Section 3a: Insured must answer the health questions for a multiple premium payment plan only to qualify for first-day coverage. Section 4: Client must answer the replacement question by indicating yes or no. Section 5: Client must specify beneficiary and their contact information: including SSN or beneficiary. Section 6: Obtain necessary signatures. The policyowner/certificateholder must sign. Section 7: Agent must complete the agent replacement questions, provide all information as instructed and sign the application/enrollment form. Judy K. Doe John L. Smit h 3/11/15 The Guaranteed Cost or Price Estimate Only Funeral Planning Agreement, including Statement of Funeral Goods and Services, must be completed. This is not required if submitting a final expense policy. Please contact Forethought Customer Service if you have any questions as there are several state variations. 6

8 Credit Card Authorization Forethought Life Insurance Company accepts premium payments via credit card through Simply Easier Payments, a third party credit processing vendor that specializes in providing online payment services. A Security and Delivery Fee for the service will be charged. Please contact Forethought Customer Service for assistance. A completed Credit Card Payment Authorization form will be required. COMPLETION CHECKLIST 1. Complete Insured s personal information 2. Complete credit card payment information 3. Select authorization for initial premium only or recurring payments 4. Obtain necessary signatures and date CREDIT CARD PAYMENT AUTHORIZATION Forethought Life Insurance Company One Forethought Center Batesville, Indiana Name of Insured Insured s Date of Birth Name of Policy Owner if different Policy/Certificate Number Cardholder s address Credit Card Payment Information This will allow Forethought Life Insurance Company ( Forethought ) to charge your insurance premium to your credit card account. Credit Card Number: Type of Credit Card: VISA MasterCard Discover CVV Code : (3 digit code on the back of card) Expiration Date: / Cardholder Name (as appears on credit card) M M Y Y Important Information regarding Simply Easier Payments, the Service Provider Simply Easier Payments is an independent payment service. By using this service, you are contracting with Simply Easier Payments to handle these transactions. A Security and Delivery Fee is an amount charged by Simply Easier Payments to you for processing your payment and forwarding it to Forethought to whom you have made the payment. The Security and Delivery Fee is nonrefundable. The full amount of your payment is forwarded to Forethought and the transaction is recorded as occurring the moment you complete it. The timely recognition of your payment is one of the primary benefits of using this method of payment as it may help you avoid late payment fees or a lapse in coverage. The Security and Delivery Fee is not a part of the payment you are making, but it is a separate charge made by and for Simply Easier Payments. You may decide to make your payment by mailing a check or requesting an automatic payment from a checking or savings account to avoid the Security and Delivery fee. Security and Delivery Fees associated with Simply Easier Payments* Payment Options Payment Security and Delivery Fee Credit Cards Accepted Single Premium/Early payoff Up to $7, $ MasterCard, Visa, Discover Single Premium/Early payoff Over $7, % of premium MasterCard, Discover Multiple Premium Payment One time Up to $ $4.00 MasterCard, Visa, Discover Multiple Premium Payment One time Over $ % of premium MasterCard, Discover Recurring Multiple Premium Payment Up to $ $4.00 MasterCard, Discover Recurring Multiple Premium Payment Over $ % of premium MasterCard, Discover *Simply Easier Payments reserves the right to modify the Security and Delivery Fee without notice Authorization Check here if this authorization is for the initial premium only. Check here to establish recurring credit card payments. ( Address Required) I authorize Simply Easier Payments and Forethought to charge my credit card for the amount of the premium due plus the Security and Delivery Fee. I authorize this plan to continue for as long as the payment amount remains unchanged and request that the credit card company and bank institution honor such charges. This authorization shall continue until the policy/certificate is paid in full or authorization is revoked by me. I further agree that if any charge fails or is disallowed, neither the institution nor Forethought shall be under any liability whatsoever. Cardholder Signature Date A Forethought 0714 Automatic Payment Authorization Form The APA form authorizes Forethought to withdraw monthly premiums. COMPLETION CHECKLIST 1. Policy/Certificate Number 2. Account holder must select either the standard date or custom date option 3. Provide financial institution information 4. Provide the Social Security number of the account holder as well as account number and routing/transit number 5. Obtain necessary signatures 6. Send Forethought the completed form along with a bank voided check or deposit slip in the postage paid envelope provided or fax all copies and a voided check to (855) AUTOMATED PAYMENT AUTHORIZATION See instructions on reverse Policy/Certificate Number: Insured: Standard Date: This will allow Forethought Life Insurance Company to make monthly drafts from my account approximately thirty (30) days from the issue date of coverage. Custom Date: I prefer to select my monthly drafts on the of each month. When processing is not complete prior to the custom date selected, two premium payments may be withdrawn to keep your coverage current. To prevent this from happening you may prefer to include an additional premium payment. Please indicate your preference: I prefer to submit an additional premium. I prefer not to submit additional premiums and realize I may have two payments withdrawn on my first transaction to keep my coverage current. ( ) Name of Financial Institution Telephone Number of Financial Institution Type of Account: Checking Savings Social Security Number of Accountholder Routing/Transit Number Account Number Authorization: I authorize Forethought Life Insurance Company to withdraw from my account the amount of premium due and request that the Institution honor such withdrawals. I agree that the Institution's rights shall be the same as if it were a check drawn and signed by me. I further agree that if any withdrawal fails or is disallowed neither the Institution nor Forethought Life Insurance Company shall be under any liability whatsoever. This authorization shall continue until the Institution receives written notification from me or the policy/certificate is paid in full. Signature as Required on Account Date PLEASE ATTACH A BLANK VOIDED CHECK BELOW Forethought

9 Calculation Examples FULL BENEFIT SINGLE PAY LIFE Example: 65 year old prearranges a $5,500 funeral Initial Face Amount = $5,500 x = $5, month Face Amount = $5,500 x = $6,050 NOTE: When calculating the face amount for single pay contracts, it is necessary to calculate both the initial face amount and the 6-month face amount. Both amounts must be shown on the enrollment form. FULL BENEFIT MULTI PAY LIFE Example: 70 year old prearranges a $6,000 funeral and wants monthly payments over 5 years Initial Face Amount = $6,000 Monthly Premium Amount = $6,000 x = $ GRADED DEATH BENEFIT MULTI PAY LIFE Example: 75 year old prearranges a $5,000 funeral and wants monthly payments over 5 years with an initial down payment of $1,000 Initial Face Amount = $5,000 Face Amount = $5,000 - $1,000 = $4,000 Remaining to be funded = $4,000 Monthly Premium Amount = $4,000 x = $

10 Calculating Premiums Insurance premiums and face amounts are both tied to mathematical factors known as premium and face factors. Premiums can be calculated electronically using the Forethought Rates2Go SM app or manually using the tables provided on your specific product sheet. RATES GOSM GET STARTED WITH THE RATES2GO APP As a new agent, you will receive an from Forethought. The will include an ID, password and link to download the Rates2Go app. Connect to the internet to login to rates2go.forethought.com and download the app. Internet access is not required once the app has been downloaded and you are logged in. Your device will automatically save your login information until you log out or access Rates2Go from a different device. If you have questions setting up Rates2Go on your device please call Forethought Sales Support at (866) or etech@forethought.com. Common Questions Why are Social Security numbers required for the Insured and Owner? In order to be compliant with Anti-Money Laundering guidelines Forethought uses the Social Security numbers of the Insured and Owner, if different, to verify the source of funds. In addition as part of our process to ensure unclaimed property is distributed appropriately we validate our active policies on a quarterly basis against the Social Security number. What if the applicant refuses to provide a Social Security number? If the applicant refuses to provide a Social Security number, or does not have one, we can accept alternative identification using our Identity Verification form (A7092), but we will not issue a policy or contract without some form of identification for both the Insured and Owner. Who can answer the health questions? Health questions can be answered by the Owner or Insured. To qualify for underwritten coverage, all health questions must be answered by the Insured. What if the Insured is unable to sign? The Insured s signature is only required for multipay underwritten coverage life insurance plans and/ or preferred rates. If the Insured is unable to sign, a single-pay life plan or multi-pay graded death benefit plan can be used depending on responses to the health questions, provided someone with insurable interest signs on behalf of the Insured. Insurable interest is defined as having a monetary interest in the continuing life of the Insured at the time of application for coverage. What if a change needs to be made to a policy? Any changes that need to be made to a policy including payment years, funeral amount, early pay-off, designated beneficiary, etc. should be initiated with Forethought Customer Service at (800) They can provide you with the proper paperwork and answer any questions you may have. 9 12

11 Top Reasons Why a Policy is Not Issued Immediately Avoid these simple mistakes to help ensure your business is processed quickly. Any signature missing Missing date of birth Check or payment didn t accompany the application/ enrollment form Box 3 of the application/enrollment form is not completed correctly, missing face amount If applicable, missing copy of power of attorney or guardianship papers Replacement questions not answered Missing agent number Premium not calculated correctly Submitted premium not correct Age of insured not eligible for payment plan selected Incorrect forms received Missing forms Missing Social Security number of proposed insured and owner, and/or beneficiary For down payment policies, not submitting both the down payment and premium Missing signature of proposed insured on Statement of Funeral Goods and Services CONTACT INFORMATION New Business Fax: (855) Address: Forethought Life Insurance Company P.O. Box 151 Batesville, IN Overnight Business Address Forethought Life Insurance Company Attn: Preneed new business One Forethought Center Batesville, IN Licensing and Contracting Phone: (800) Fax: (800) preneed.licensing@forethought.com Sales Support Phone: (866) sales.support@forethought.com Customer Service Phone: (800) Fax: (800) Claims Fax: (888) ask.us@forethought.com 10 13

12 This manual is intended to provide general information regarding Forethought Life Insurance Company products, forms and standard operating procedures. Please contact Forethought Sales Support for specific state information as some products, forms and standard operating procedures may differ or be unavailable in all states. Forethought is Forethought Life Insurance Company and affiliates, subsidiaries of Global Atlantic Financial Group Limited. Forethought Life Insurance Company One Forethought Center Batesville, IN (866) forethought.com M6160 (03-15) 2015 Forethought