TRANSAMERICA LIFE INSURANCE COMPANY Trendsetter LB Life Insurance Supplemental Quote

Transcription

1 1 Valued Client male age 45, preferred, non-smoker Initial ANNUAL Premium: Face Amount: Riders: $ $500,000 NONE Life Insurance Money for your Beneficiary Face Amount $500,000 on the insured. Accelerated Living Benefits Money for Accelerated Living Benefits See the following pages for more details on these living benefits that are included in your policy: * Terminal Illness Accelerated Death Benefit * Chronic Illness Accelerated Death Benefit * Critical Illness Accelerated Death Benefit Please review policy for all terms, conditions, and exclusions of each benefit listed. This supplemental quote shows guaranteed elements. Actual results may be more favorable than shown. This supplemental quote must be accompanied by a complete basic policy quote, so please refer to the basic policy quote for your life insurance policy s guaranteed elements and other important policy and rider information. Any benefits provided by the policy will be reduced if an accelerated death benefit is paid. Benefits accelerated may be taxable and affect eligibility to public assistance in some jurisdictions. Please consult your own tax advisor regarding your particular situation. THIS IS A SUPPLEMENTAL QUOTE ONLY. NOT AN OFFER OR CONTRACT. COVERAGE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE POLICY. THIS SUPPLEMENTAL QUOTE IS NOT VALID WITHOUT ALL THREE PAGES. This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 1 of 3

2 2 Valued Client male age 45, preferred, non-smoker SUMMARY OF ACCELERATED LIVING BENEFITS Initial ANNUAL Premium: Face Amount: Riders: $ $500,000 NONE Please review policy for all terms, conditions, and exclusions of each benefit listed. These benefits are automatically included in your policy. These benefits give you the choice to accelerate the face amount if the insured has a terminal, chronic, or critical illness, subject to state availability. If you choose to elect less than the amount quoted below, the accelerated payment will be lower but remaining death benefit amount will be higher. This policy gives flexibility and protection at times when you may need it most. Terminal Illness Terminal Illness Accelerated Death Benefit Benefit amount shown assumes the maximum acceleration has been elected and a claim is made in policy year 8. The maximum acceleration election is 100% of the policy face amount or $500,000 including any other accelerated death benefits with the company, whichever is less. Under these assumptions $471,206 would be payable to the owner. If 100% of the policy face amount has been accelerated, policy coverage terminates at the time of the payment and there would be no death benefit payable to the beneficiaries at the insured s death. Chronic Illness Chronic Illness Accelerated Death Benefit Benefit amount shown assumes the maximum annual election of 24% acceleration of the policy face amount. The maximum benefit over the lifetime of the insured is 90% of the policy face amount or $500,000 including any other accelerated death benefits with the company, whichever is less. The benefit is paid out annually and the first year benefit is shown below for each scenario. The benefit amount depends upon the severity of the chronic illness and the insured's remaining life expectancy at the time of acceleration. Estimated Maximum Accelerated Payout* Age at Claim Minor Moderate Severe $8,963 $300 $28,430 $34,468 $82,147 $81, $300 $17,463 $79,104 Remaining policy face amount in effect after the maximum payout of the first year benefit = $380,000. Premiums will be reduced proportionately and will continue to be payable on the reduced face amount remaining. Critical Illness Critical Illness Accelerated Death Benefit Benefit amounts shown assumes the maximum election of 90% acceleration of the policy face amount. The maximum benefit is 90% of the policy face amount or $500,000 including any other accelerated death benefits with the company, whichever is less. The benefit amount depends upon the severity of the critical illness and the insured's remaining life expectancy at the time of acceleration. Estimated Maximum Accelerated Payout* Age at Claim Minor Moderate Severe $35,033 $130,676 $309,473 $1,000 $108,817 $307,984 $1,000 $69,081 $300,232 Remaining policy face amount in effect after the maximum payout = $50,000. Premiums will be reduced proportionately and will continue to be payable on the reduced face amount remaining. THIS IS A SUPPLEMENTAL QUOTE ONLY. NOT AN OFFER OR CONTRACT. COVERAGE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE POLICY. THIS SUPPLEMENTAL QUOTE IS NOT VALID WITHOUT ALL THREE PAGES. This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 2 of 3

3 2 SUMMARY OF ACCELERATED LIVING BENEFITS (CONTINUED) Valued Client male age 45, preferred, non-smoker Initial ANNUAL Premium: $ Face Amount: $500,000 Riders: NONE *Severity is based on the reduction in the insured s life expectancy as determined by the company physician's assessment and using the industry standard 2001 Valuation Basic Tables. Minor means life expectancy is reduced 30%, moderate means life expectancy is reduced 50%; and severe means life expectancy is reduced 80%. Payouts shown above assume 6% discount rate. At the time of claim, the administrative charge for each Accelerated Death Benefit request will be $350, plus any future increases based on cumulative annual cost-of-living increases as measured by the Consumer Price Index for All Urban Consumers (CPI) since January 1, Cumulative annual cost-of-living increases will not exceed 5% per calendar year. Administrative charge and CPI increases may vary by jurisdiction. THIS IS A SUPPLEMENTAL QUOTE ONLY. NOT AN OFFER OR CONTRACT. COVERAGE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE POLICY. THIS SUPPLEMENTAL QUOTE IS NOT VALID WITHOUT ALL THREE PAGES. This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 3 of 3

4 3 Marketing Office 1150 S. Olive Street Los Angeles, CA A CUSTOM LIFE INSURANCE QUOTE OF OUR TERM LIFE INSURANCE: Policy Form Number: TL19 CO FOR Valued Client PRESENTED BY Valued Agent 8400 East Prentice Ave STE 1250 Greenwood Village, CO Telephone: License Number: APRIL 08, 2014 THIS IS A QUOTE SHOWING THE GUARANTEED ELEMENTS OF THE LIFE INSURANCE POLICY. CONSISTENT WITH TRANSAMERICA'S SALES PRACTICES, THE QUOTE REFLECTS THE GUARANTEED MAXIMUM CHARGES FOR THE SCENARIO REPRESENTED. This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 1 of 3

5 4 GUIDE TO THE QUOTE Annual Premium Death Benefit For the policy form named above, the annual premium is guaranteed to remain level for the first ten policy years. This quote shows the sum of the modal premiums that you will pay during the year. For instance, if you select quarterly payments, the first year premium outlay shown above shows 4 times the quarterly premium being paid each year. Premiums increase annually starting in the eleventh policy year. The death benefit of the policy is the amount payable to the beneficiary at the insured's death. Subject to all policy provisions, the face amount is guaranteed to remain level to the policy anniversary nearest the insured's age 105, as long as the required premium is paid before the end of the grace period. The policy owner may request a decrease in the face amount while the policy is in-force, but may not reduce the face amount below the policy minimum. Conversion Option Policy Issue Information This option allows the policy holder to exchange a Trendsetter term policy to a designated universal life insurance plan(s) made available by the Company at the time of the conversion. No underwriting will be required if the exchange is to a permanent policy with the same or lower face amount. The new policy will be issued at the class of risk of the in-force policy, if available. If such a class is not available at the time of conversion, the new policy will be issued at the class of risk that is most similar to the class of risk as the in-force policy. Actual premiums on this new policy will be based on the schedule in effect when the option is exercised. To qualify for a better class of risk, full underwriting may be required. This option must be exercised no later than the earlier of the end of the initial level premium period or the insured's 70th birthday (75th birthday on Preferred Plus class). The basic underwriting requirements based on this quote are: Paramedical, BCP, HOS Initial Modal Premiums A S/A Q Q/PAC M/PAC Kind Code / Plan Code 6757 TD529A R D Terminal Illness Accelerated Death Benefit (TIADB) Chronic Illness Accelerated Death Benefit (CHADB) Critical Illness Accelerated Death Benefit (CRADB) Eligibility for the Terminal Illness Accelerated Death Benefit is determined by a condition resulting from bodily injury or disease which, as described by a Physician, has reduced life expectancy to not more than 12 months from the date of the Physician's statement. The Policy's benefits and values will be reduced proportionally in accordance with the benefits advanced under this option. Benefits advanced under TIADB may be subject to taxation. Allows the policy owner to accelerate the death benefit if the insured becomes chronically ill. Chronically ill means that the insured has been certified, within the last 12 months, by a licensed health care practitioner as being unable to perform two of the six activities of daily living without substantial assistance from another person for at least 90 days, or being severely cognitively impaired for at least 90 consecutive days. The activities of daily living include: bathing, continence, dressing, eating, toileting and transferring. No Chronic Illness accelerated benefits will be paid under this endorsement during the first 2 years it is in effect. Waiting period may vary by jurisdiction. After the waiting period, the policy owner can accelerate up to 24% of the Face Amount annually once the insured has been certified as chronically ill. The maximum amount of lifetime benefits that can be accelerated for CHADB is 90% of the Face Amount or $500,000, whichever is less. However the actual payment will be, minus adjustments, less than the portion of the death benefits accelerated because the benefits are paid prior to death. Benefits may be subject to taxation. Benefits vary by jurisdiction. Allows the policy owner to accelerate the death benefit if the insured becomes critically ill. A critical illness is one of the qualifying events: heart attack, stroke, ALS (Lou Gehrig's disease), cancer, kidney failure, blindness due to diabetes, paralysis (loss of use of two or more limbs), and major organ transplant (Please see the policy for complete definitions of qualifying conditions). After a 30 day waiting period (may vary by jurisdiction), the policy owner can access up to 90% of the Face Amount or $500,000, whichever is less. However the actual payment will be, minus adjustments, less than the portion of the death benefits accelerated because the benefits are paid prior to death. Benefits may be subject to taxation. Benefits vary by jurisdiction. This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 2 of 3

6 4 Maximum Accelerated Death Benefit The maximum total amount of lifetime benefits that can be accelerated including all other Accelerated Death Benefits under all policies, endorsement, or riders issued by Transamerica and its affiliates covering the same insured is $500,000 (subject to state variations). This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 3 of 3

7 5 Internal Rate of Return Quote NON -----DEATH BENEFIT----- End of GUAR. NET INTERNAL Policy Yr Age INTR. RATE PREMIUM OUTLAY DEATH VALUE RATE OF RETURN ,000 79,265.08% ,000 2,667.62% , % , % , % SUBTOTALS 3, , % , % , % , % , % SUBTOTALS 6, , , % , , % , , % , , % , , % SUBTOTALS 42, , , % , , % , , % , , % , , % SUBTOTALS 101, , , % , , % , , % , , % , , % SUBTOTALS 199, , , % , , % , , % , , % , , % SUBTOTALS 356,910 This supplemental quote is for comparison purposes only. A life insurance policy, being intended primarily to protect against the financial consequences of death, should not be purchased on the basis of its internal rates of return. This supplemental quote shows the Internal Rate of Return (IRR) on the Death Benefits. The IRR is the level annual rate of interest that an annualized cumulative stream of the Premium Outlay figures shown would need to earn outside the policy each year from the inception of the policy to arrive at the Death Benefits at the end of the year shown. Policy form number: TL19 CO This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 1 of 2

8 5 Internal Rate of Return Quote NON -----DEATH BENEFIT----- End of GUAR. NET INTERNAL Policy Yr Age INTR. RATE PREMIUM OUTLAY DEATH VALUE RATE OF RETURN , , % , , % , , % , , % , , % SUBTOTALS 618, , , % , , % , , % , , % , , % SUBTOTALS 1,065,140 This supplemental quote is for comparison purposes only. A life insurance policy, being intended primarily to protect against the financial consequences of death, should not be purchased on the basis of its internal rates of return. This supplemental quote shows the Internal Rate of Return (IRR) on the Death Benefits. The IRR is the level annual rate of interest that an annualized cumulative stream of the Premium Outlay figures shown would need to earn outside the policy each year from the inception of the policy to arrive at the Death Benefits at the end of the year shown. Policy form number: TL19 CO This is a quote not a contract. Presented by Valued Agent on APRIL 08, 2014 CO. Version Page 2 of 2