Senior Wholesale Manager, EquiTrust Life Insurance Company Over 11 years experience as part of the EquiTrust team Dedicated to building successful

Transcription

1 Senior Wholesale Manager, EquiTrust Life Insurance Company Over 11 years experience as part of the EquiTrust team Dedicated to building successful relationships with marketing firms

2 EquiTrust Life Insurance Company Davis Life Advanced Sales Training The Power of Single Premium Life Presented by Jason Goodrich IC15-WX-1080

3 Exciting Wealth Transfer Life Products from EquiTrust Life WealthMax Bonus Life WealthSure Life TM WealthPay Life TM IC14-WX-1091

4 EQUITRUST LIFE PRODUCTS Help Fulfill Client Objectives with Single Premium Life Insurance An Effective Means for Wealth Transfer Turn $50,000 Into $103,500 Death Benefit Example assumes female age 60 non-smoker.

5 EQUITRUST LIFE PRODUCTS Help Fulfill Client Objectives with Single Premium Life Insurance Living Benefits for Certain Health Conditions Turn $50,000 Into $103,250* Living Benefits *When Death Benefit accelerated and taken as monthly payments. Example assumes female age 60 non-smoker.

6 EQUITRUST LIFE PRODUCTS Sources of Funds CDs Checking/Savings Accounts & Money Market Annuities Life Insurance Policies Qualified Accounts

7 EQUITRUST LIFE PRODUCTS Underwriting Process Simplified-Issue Standard to Table 4 Accept/Reject Pre-Qualification Chart Health Questions on Application Phone Interview: Point-of-Sale or Scheduled No Exams or Fluid Draws APS at Underwriter Discretion Underwriting Decisions Usually Within 48 Hours Real-Time Notification of Decisions

8 EQUITRUST LIFE PRODUCTS Liquidity Options 5% Free Withdrawals One Per Year, $25 Fee Per Withdrawal Proportionate Reduction to Death Benefit Loans Return of Premium (WealthMax Only) Accelerated Death Benefit Rider for Living Benefits

9 EQUITRUST LIFE PRODUCTS Living Benefit Rider WealthMax Bonus Life / WealthSure Life Automatically included in the Policy at no charge in states where it is approved. One-time administrative fee of $250 if benefit is elected.* Terminal Illness 95% of Death Benefit in Lump Sum Nursing Care Confinement 100% of Death Benefit over 3 Years or 85% of Death Benefit in Lump Sum Chronic Care 100% of Death Benefit over 5 Years or 75% of Death Benefit in Lump Sum *Rider provisions and availability may vary by state.

10 EQUITRUST LIFE PRODUCTS WealthMax Bonus Life WealthMax Bonus Life Standard Features: Issue Ages (No backdating to save age) Single Premium Min: $10,000/Max: $750,000 Face Amount (assuming no other inforce life or annuities) Guaranteed Death Benefit to Age Year Declining Surrender Charge Schedule Index and Fixed Accounts Available 12% Premium Bonus Added to Accumulation Value Immediately Return of Premium Guarantee Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Return of Premium is net of any prior partial withdrawals and any outstanding loan balance. Policy issued on Contract Form Series ICC11-ETL-IUL-2000(04-11). Policy and riders may not be available in all states and may vary by state.

11 EQUITRUST LIFE PRODUCTS WealthMax Bonus Life Rates Account Options Cap Rates* Illustrated Rates 1-Year Interest 1-Year Point-to-Point Cap Index 1-Year Monthly Cap Index 2-Year Average Cap Index 3.50% 8.00% Cap 3.00% Cap No Cap 3.50% 5.60% 5.80% 11.40% *Current rates, effective 10/31/14.

12 WEALTHMAX BONUS LIFE Excellent Commissions Ages Ages Ages % 8.5% 6.5%

13 WEALTHMAX BONUS LIFE What Does WealthMax Bonus Life Offer Your Clients? Return of Premium Living Benefits Guaranteed Death Benefit

14 WEALTHMAX BONUS LIFE WealthMax Bonus Life Scenario Non-Smoker Age 60 $50,000 in a CD earning 2% Betty Objective: Concerns: Options: Leave this money to her two grandchildren when she dies Potential for health-related expenses during her lifetime, such as medical costs or nursing home care Leave the money in a CD Transfer it to an annuity, at 3% Purchase a WealthMax Bonus Life policy

15 WEALTHMAX BONUS LIFE Death Benefit Comparison CD 1 Annuity Death Benefit WealthMax Bonus Life Death Benefit Guaranteed 2 WealthMax Bonus Life Death Benefit Non- Guaranteed 2,3 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $145,781 $129,377 $103,500 $103,500 $103,500 $79,020 $62,381 $67,494 $50,000 $50,000 $57,884 Immediate Value At 10 Years At 20 Years 1 Assuming a 28% tax bracket. Values assume CD value less all taxes paid in prior years. Actual CD death benefit will be current CD amount less income tax withheld in year of death. 2 Single Premium Life is an insurance product and is not FDIC insured. 3 Based on a 5.5% illustrated rate. The values shown are non-guaranteed and may not be presented to a client without a compliant illustration. The policy must be in force at the time of death to pay a death benefit. The death benefit will be reduced by any outstanding loan balance at the time of death. The death benefit is also reduced by any payment of Accelerated Death Benefits or partial withdrawals. Neither the Company nor its agents give tax, accounting or legal advice; please consult your professional advisors in theses areas. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company.

16 WEALTHMAX BONUS LIFE Death Benefit Comparison Five Years Later Assume Betty needs to access funds to help pay for a terminal illness, nursing care confinement or chronic illness. $98,075 income tax-free Terminal Illness $87,725 income tax-free lump sum or $2,868/mo for 3 Years Nursing Home Confinement $77,375 income tax-free lump sum or $1,720/mo for 5 Years Chronic Illness Before electing any benefits, clients should contact their tax advisor regarding taxability of living benefits. Neither the Company nor its agents give tax, accounting or legal advice; please consult your professional advisors in theses areas.

17 WEALTHMAX BONUS LIFE What if Betty Changes Her Mind? Fortunately there s a Return of Premium Guarantee!

18 SALES TOOLS WealthMax Bonus Life Showbook Support your WealthMax Bonus Life sales with the EquiTrust WealthMax Showbooks featuring product information, financial comparisons and hypothetical examples. What s Inside: Product Positioning Information Life Product Information Hypothetical Examples Market Comparisons

19 What about your clients with Qualified money earmarked for Wealth-Transfer?

20 SOLUTION WealthPay Life Combines a single premium immediate annuity (SPIA) and a fixed premium, index-linked whole life insurance. Annual SPIA payments pay the annual insurance premium over 3, 5, or 10 years Taxable portion of SPIA premium is spread over each SPIA payment instead of all up-front Immediate income tax-free death benefit at issue Commuted value of SPIA in the event of death during premium-payment period

21 WEALTHPAY LIFE Hypothetical Example: Sharon $50, K No tax liability on lump sum Transferred to annuity SPIA $10,660 $10,660 $10,660 $10,660 $10, for each payment Annual Premium Payments $95,261 Death Benefit Example assumes female, 60, non-smoker, 5 pay. The policy must be in force at the time of death to pay a death benefit. The death benefit will be reduced by any outstanding loan balance at the time of death. The death benefit is also reduced by any payment of Accelerated Death Benefits or partial withdrawals. Neither the Company nor its agents give tax, accounting or legal advice; please consult your professional advisors in theses areas. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company.

22 WEALTHPAY LIFE Account Options and Current Rates Account Options Cap Rates* Illustrated Rates 1-Year Interest 1-Year Point-to-Point Cap Index 1-Year Monthly Cap Index 1-Year Monthly Average Participation 4.00% 9.00% Cap 3.25% Cap 100% 4.00% 6.10% 6.40% 6.60% *Current rates, effective 10/31/14. Rates subject to change.

23 WEALTHPAY LIFE Excellent Commissions Ages % Ages %

24 DynaMARC Index TM Annuity (Multi Asset Risk Controlled) IC15-WX-1079

25 DynaMARC Index Annuity Features 10-year surrender schedule Flexible Premium; $10,000 initial minimum Issue ages % free withdrawals after 1 st year Nursing Home Waiver 7% MGA Commission Income Benefit Rider available: Strategic Income Option Contracts issued on Contract Form Series ET-MTA-2000(06-07) or ICC15-ET-MTA-2000(04-15). 24

26 Strategic Income Option Available only on DynaMARC Index Annuity Stackable Design 10% Bonus on 1 st year premium, plus 4% Fixed Rate, plus Index and Interest Credits Minimum age to begin Income Withdrawals: 50 Annual rider fee: 0.95% of Accumulation Value Income Withdrawals available after 1 st year Contract issued on Form Series ET-IBR-STR(04-15) or ICC15-ET-IBR-STR(04-15). 25

27 The Process Asset-Class Diversification Dynamic Rebalancing Volatility Control 5 Asset Classes / 8 Domestic and International Components Equities Bonds Commodities Real Estate Cash US Equit y International Equity US Bonds European Bonds Global Commodities US Real Estate European Real Estate Money Market Broad diversification may lead to more stable returns Potential for more favorable risk-adjusted returns 26

28 The Process Asset-Class Diversification Dynamic Rebalancing Volatility Control Monthly rebalance of components Past data used to identify allocations with highest 6-month return, within volatility and weighting constraints Use of historical data to select portfolio for coming month captures market momentum 27

29 The Process Asset-Class Diversification Dynamic Rebalancing Volatility Control Helps generate stable, smooth returns over time 5% volatility target monthly rebalance dates 5.5% volatility cap if exceeded on any day, cash position increased Reduces magnitude of both upward and downward swings 28

30 DynaMARC Index Annuity Account Options 1-Year Interest Account Current Rate Illustrated Rate* 1-Year Interest Account 2.50% 2.50% Dynamo Strategy Index-Linked Accounts Current Rate Illustrated Rate* 1-Year Point-to-Point Participation Index Account 2-Year Point-to-Point Participation Index Account 75% 100% 3.67% 4.81% S&P 500 Index-Linked Accounts Current Rate Illustrated Rate* 1-Year Point-to-Point Cap Index Account 1-Year Monthly Cap Index Account 4.50% 2.00% 3.34% 2.89% *The Illustrated Rates reflect annualized rates over the 10-year term. Rates as of 8/26/15 and are subject to change. 29

31 Hypothetical Backtested Analysis Hypothetical Index Account Performance Period Ending 10/1/05 10/1/06 10/1/07 10/1/08 10/1/09 10/1/10 10/1/11 10/1/12 10/1/13 10/1/14 1-Year Index Growth 15.15% 4.70% 3.80% 4.04% 2.69% 8.10% -3.59% 6.65% -0.20% 8.85% 2-Year Index Growth 20.56% 8.00% 11.01% 2.82% 8.62% 1-Year Account 75% Participation 11.36% 3.52% 2.85% 3.03% 2.02% 6.08% 0.00% 4.99% 0.00% 6.63% 2-Year Account 100% Participation 20.56% 8.00% 11.01% 2.82% 8.62% Backtested Performance The Index performance shown prior to 6/15/15 reflects backtested results, which is not actual performance but is calculated by applying the existing parameters. While the Dynamo Strategy Index did not exist during the full time period, the underlying component itself or the underlying constituents of the component did. Past hypothetical performance of the index is not indicative of future results. It is not possible to predict the future performance or volatility of any single component or portfolio of components. The performance of the index reflects an embedded 0.50% annual deduction to cover expenses, costs and fees. The index returns provided are net of this deduction. Because the index follows a rules-based, non-actively managed strategy to select assets based on historical performance, there is no guarantee that the component weights selected will generate the highest return for the given level of risk in the future. An alternate combination of weights may yield a higher return to risk ratio. The index is calculated on an excess-return basis, meaning the risk-free rate of Fed Funds is deducted from the index. If the index is allocated 100% to the Money Market position, the return of the index will be negative due to the deduction for the Fed Funds and the 0.50% annual fee deduction. If the index return over the crediting period is zero or negative, the account value will be credited with 0%. All crediting of the account value occurs only at the end of the specified crediting period. 30

32 ILLUSTRATION DynaMARC Index with Strategic Income Option Option Selected: Single Lifetime Income Rider Charge: 0.95% Benefit Start Year: 11 Payout Factor: 4.75% Account Allocation: 50% 1-Year Point-to-Point Participation Index Account 50% 2-Year Point-to-Point Participation Index Account Rider Values Projected on a Guaranteed Basis This is an illustration only. An illustration is not intended to predict actual performance. Interest rates or values that are set forth in the illustration are not guaranteed, except for those items clearly labeled as guaranteed. 31

33 ILLUSTRATION DynaMARC Index with Strategic Income Option Option Selected: Single Lifetime Income Rider Charge: 0.95% Benefit Start Year: 11 Payout Factor: 4.75% Account Allocation: 50% 1-Year Point-to-Point Participation Index Account 50% 2-Year Point-to-Point Participation Index Account Rider Values Projected on a Non-Guaranteed Basis This is an illustration only. An illustration is not intended to predict actual performance. Interest rates or values that are set forth in the illustration are not guaranteed, except for those items clearly labeled as guaranteed. 32

34 Client Advantages Multi-asset, globally diverse components Provide the potential for the highest risk-adjusted returns subject to a target volatility Participation Account Options Annual returns though more modest provide steadier compounding of index credits Stackable-Design Income Rider with 10% Bonus Potential for higher income due to index credits Rider fee is based on Accumulation Value 33

35 EQUITRUST LIFE INSURANCE COMPANY Company Strength Company Statistics EquiTrust Life is committed to meeting the financial goals of our customers. The guarantees associated with our products are backed by our financial strength and ability to pay our claims. EquiTrust is supported by a history of success, experience and strength. Guggenheim Partners with more than $240 billion in assets under management is involved in the management of the EquiTrust investment portfolio. Total Assets $14.5 Billion Portfolio Investment Grade 95% Risk-Based Capital Ratio 402% Solvency Ratio $ Assets and financials as of 12/31/14, on a statutory basis. Data as of December 31, 2014, on a statutory basis.

36 Thank You!