Whole Life Agent Training PowerPoint

Transcription

1 Welcome to Online Training! Today you re going to learn about Whole Life. Please check Agent Services for product availability.

2 This Agent Training PowerPoint provides information about the Whole Life policy. Remember, this material is for training and has not been filed or approved as advertising. It should not be used as a sales tool. 2

3 People buy life insurance because it minimizes the economic hardships of death, and it can help meet the financial needs of the insured and their family. 3

4 Who are the best prospects for our Whole Life products? Customers who wish to provide cash to meet the needs associated with final expenses. Customers who desire a guaranteed level premium and a guaranteed death benefit. Customers who want the ability to stop paying premiums in the future and use the cash value to provide a paid-up life insurance policy. 4

5 Our life policies should not replace existing life coverage. Add additional coverage, do not replace. Replacement of existing Torchmark Corporation subsidiary insurance policies or United Investors Life Insurance Company policies is not allowed. Torchmark subsidiaries include: American Income Life First United American Life Globe Life And Accident Liberty National Life National Income Life United American Family Heritage Life 5

6 There are immediate financial needs that must be met when a contributing family wage earner dies. The first is the need for immediate cash to cover medical bills related to the final illness, funeral and cemetery expenses, taxes, legal fees, and court costs. 6

7 Ongoing needs for cash when a family wage earner dies include food, clothing, utilities, transportation, day care for the children, health services and medical care. 7

8 There also are other continuing needs for cash to pay for outstanding debts, mortgage or rent payments, and emergencies such as home repairs or automobile repairs. 8

9 When a family wage earner dies, the expenses of daily life continue, and the loss of his or her monthly income can be devastating. This is especially true if there are children, since the need for family income is greatest while the children are growing up and there are expenses such as tuitions for college or specialized training. 9

10 Some needs can be met by Social Security, but Social Security benefits are limited and are only payable under special circumstances. Let s consider how a Whole Life policy can help meet the family s financial needs following a wage earner s death. 10

11 Whole Life insurance can be used to provide an affordable amount of life insurance protection to help pay for final expenses when the insured dies. Whole Life is not a savings account nor does it work like one. It is a life insurance policy with a fixed premium and a guaranteed cash value buildup. 11

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13 Customers may choose the amount of life insurance coverage to purchase based on their individual needs. For issue ages 0-70, the WL Whole Life insurance policy is available in face amounts starting at $2,

14 For issue ages 71-80, a new WL Whole Life insurance policy is available in face amounts from $2,500 to $30,000. If the policy is issued from a Term Conversion, the WL Whole Life insurance policy is available in face amounts starting at $2,

15 The face amount of your customer s Whole Life insurance policy never decreases as he or she ages. Please note that the death benefit of a child under the age of two months is onefourth the face amount. 15

16 Premiums remain level for the life of the policy and are guaranteed never to increase. 16

17 On the second and fourth policy anniversaries, the customer may purchase additional coverage without evidence of insurability. Each optional purchase amount may be up to the original face amount, not to exceed $25,000. The OPAI is automatically included in the Whole Life policy for issued as applied for ages

18 A Terminal Illness Accelerated Death Benefit Rider is automatically included with an issued as applied for policy. The Terminal Illness Accelerated Death Benefit Rider is not included on rated policies. If a physician determines the primary insured is expected to die in the next 12 months from a terminal illness, the Accelerated Benefit Rider allows 50 percent of the Whole Life death benefit to be paid to the primary insured prior to death. The remainder of the face amount is paid to the beneficiary after the primary insured s death. 18

19 Policy premiums may be deducted automatically from your customer s checking account. 19

20 A nontobacco user discount is available on Whole Life if the insured has not used tobacco in any form for at least one year. In addition, the nontobacco user discount is available for insureds who are issued a policy without a nontobacco user discount, but subsequently abstain from using tobacco of any form for at least one year and meet other underwriting requirements. 20

21 Customers also can choose to purchase optional benefits for additional premium. Customers ages 1-17 can add an Accidental Death Benefit Rider with a benefit amount equal to the face amount of the policy applied for. Customers ages can add an Accidental Death Benefit Rider with a maximum benefit amount of $200,000. The policy pays the additional ADB amount if the insured s cause of death is accidental. Total accidental death benefits, including all accidental death benefits provided by supplemental accident and health plans with Liberty National, cannot exceed $300,000. The Accidental Death Benefit Rider terminates at age

22 Another optional benefit the customer may purchase for additional premium is the Premium Waiver. The Premium Waiver waives premium if the insured becomes totally disabled. Disability must occur after age five, but before age 65. If the customer becomes disabled after age 60, premiums are waived until age 65 if disability continues. If disability occurs after age 65, premiums are not waived. 22

23 For an additional premium, your customer can add term insurance with or without the Accidental Death Benefit that insures the life of each child under the age of 19. Coverage begins when a child is 15 days old. The Children s Insurance Rider is issued in the amounts of $5,000, $10,000, $15,000, $20,000, or $25,000. Face amounts cannot exceed the base policy amount plus rider. 23

24 Additional coverage can also be added on the insured s spouse. The Spouse Term Rider must be the same product as the base policy. For example, you cannot add a 15 MDT Spouse Term Rider to a 30 MDT policy. 24

25 The customer also can purchase an Interim Term Rider for only $1 for the first month s premium. Coverage from $20,000 up to $50,000 is available. After the introductory period, rates are based on the primary insured s age, health, and selected plan. The Interim Term Rider is not available if the face amount for any one insured primary, spouse, or child exceeds $50,000, or has an Accidental Death Benefit that exceeds $50,

26 Whole Life and its optional riders must be submitted on the A-250 application, available in both paper format and as an eapp. 26

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28 Now we re going to take a look at a Whole Life sample policy. 28

29 On the WL Whole Life sample policy, you notice a statement at the top of the page: If the insured is less than two months old at death, we pay $250 per $1,000 of the amount of insurance. For example, if the face amount of the policy is $10,000, and the insured is a week old at time of death, the policy benefit is $2,500 one fourth of the original policy face amount. It s extremely important that you point this out if the policy insures a newborn child. 29

30 The next paragraph explains the 20-day free-look period that enables the customer to return the policy during the first 20 days for a full refund. This 20-day free look begins when the policy is delivered to the customer. Therefore, you must deliver policies as soon as you receive them and return the completed policy delivery slip to the Home Office. 30

31 At the bottom of the first policy page you see the name of the insured, policy number, death benefit amount, effective date of the policy, plan or type of policy, policy owner s name, insured age and sex, and Agency number. 31

32 Page two shows the Policy Specifications and Benefit and Premium Schedule. At the bottom of this page, there is a sentence about the Option to Purchase Additional Insurance that states: The option dates to purchase additional insurance occur on the second and fourth policy anniversaries. The face amount of each option also is shown on the Benefit and Premium Schedule. 32

33 Page three of the policy shows the Table of Guaranteed Values for the policy. It shows the Cash Value, the Reduced Paid-Up amount, and Extended Term Insurance. 33

34 Page five of the policy includes information about the automatic premium loan. It states that if APL is elected, premiums on the policy are automatically paid by charging them as a loan against the policy if the policy has loan value and the premium is not paid by the end of the grace period. 34

35 On page six of the policy are options the policy owner may elect concerning cash value. Under the section titled, Your Options, the customer may elect to take the net cash value in one of the following ways: Surrender for Cash Paid-Up Insurance Extended Term Insurance If no selection is made by the policy owner, the policy is continued under the automatic option, which is Extended Term Insurance. 35

36 All provisions in the policy are important, and you should be familiar with each of the provisions in each of the policies that you sell. Your Agency Owner or Agency Director will discuss policy provisions with you. Take the time to read these policies so that you understand them. If you have questions concerning any of the policy provisions, ask your Agency Owner or Agency Director. 36

37 Congratulations! You have completed the Whole Life Agent Training PowerPoint.