Medavie Blue Cross Individual Life - Product Manual August 2011

Transcription

1 Medavie Blue Cross Individual Life - Product Manual August 2011

2 DISCLAIMER Agents/brokers interested in selling Medavie Blue Cross personal life plans can use this document as a training tool. Existing agents/brokers can use this document as reference material. This is not a contract or a policy and does not contain all information related to Medavie Blue Cross personal life products. 2

3 Table of Contents Medavie Blue Cross has a portfolio of products to meet the needs of a diverse life insurance market. All life products are underwritten by Blue Cross Life Insurance Company of Canada. INDEX PAGE # WHOLE LIFE PRODUCTS 4 Easy Access 4 Preferred Access 4 Whole Life TERM PRODUCTS 6 Term 10 - under $100,000 6 Term 10 - $100,000 and up 6 standard 7 preferred 7 elite 7 Century Life 7 OPTIONAL RIDERS 8 Family Term Rider 8 Waiver of Premium Rider 8 Accidental Death Rider 8 UNDERWRITING REQUIREMENTS 9 GENERAL INFORMATION Day Free Look 10 Payment Information 10 Temporary Insurance Agreement 10 Policy Delivery 10 Commissions 11 Life Product Material 11 Contact Information 11 APPENDIX (RATES FOR ALL PRODUCTS LISTED IN APPENDIX) 12 Easy Access Rates 12 Preferred Access Rates 13 Whole Life 100 Rates 14 Term 10 - under $100,000 Rates 16 Term 10 - $100,000 and up (standard) Rates 17 Term 10 - $100,000 and up (preferred) Rates 18 Term 10 - $100,000 and up (elite) Rates 19 Regular / Enhanced Underwriting Table 20 Century Life Rates 21 Family Term Rider Rates 22 Waiver of Premium / Accidental Death Rider Term 10 Rates 23 Waiver of Premium / Accidental Death Rider Whole Life 100 Rates 24 Waiver of Premium / Accidental Death Rider Century Life Rates 25 Waiver of Premium Family Term Rider Rates 26 3

4 Whole Life Products EASY ACCESS Product Features All benefits, rates and cash values are guaranteed for the life of the contract. This is a non-participating, fully guaranteed whole life insurance product. No medical examinations required. Immediate death benefit available. No waiting period. Face amount doubles if death occurs by accident. Issue ages: years. Up to $35,000 of coverage available. Minimum premium: $200/year or $20/month. Financial security along with money for final expenses. Qualifying for Easy Access requires the client to answer no to four basic health questions. Once enrolled in Easy Access, coverage will never be reduced. PHYSICIAN S SIGNATURE REQUIREMENTS Age for any face amount EFFECTIVE DATE If applicant answers NO to the four questions: Immediate coverage, OR Coverage effective the first day of next month. If the applicant answers YES to any of the four questions: Coverage is effective upon policy issue and initial payment made in full. RATES Annual rates per $1,000 Annual policy fee of $50 for annual billing Monthly policy fee of $2.70 for monthly billing (pre-authorized chequing - PAC) Non-Forfeiture Benefits: Cash values and automatic premium loan provisions are available once the policy has been in force for three years. Annual rates per $1,000 * Click HERE (APPENDIX) for Easy Access rates * PREFERRED ACCESS Product Features Preferred Access offers the same features as Easy Access, but at better rates. To qualify for Preferred Access the applicant must satisfy six additional health-related questions. Medical examination or tests are not required. PHYSICIAN S SIGNATURE REQUIREMENTS Age for face amount over $10,000 Age for face amount over $7,500 Age for face amount over $5,000 Age for any face amount EFFECTIVE DATE Coverage is effective upon policy issue and initial payment is made in full. 4

5 PREFERRED ACCESS cont d RATES Annual rates per $1,000 Annual policy fee of $50 Monthly policy fee of $2.70 for monthly billing (pre-authorized chequing - PAC) Non-Forfeiture Benefits: Cash values and automatic premium loan provisions are available once the policy has been in force for three years. Annual rates per $1,000 * Click HERE (APPENDIX) for Preferred Access rates * WHOLE LIFE 100 Product Features All benefits, rates and cash values are guaranteed for the life of the contract. This is a non-participating, fully guaranteed whole life insurance product. Face amount is paid on death or survival to age 100. Issue ages: 15 days to 85 years. Premiums are payable for the life of the contract. Non-Forfeiture Benefits: cash values, paid-up values and automatic premium loan provisions are available once the policy has been in force for five years. Waiver of Premium, Accidental Death, and Family Term Rider may be added as benefits to this policy. Minimum policy $5,000 Minimum premium: Male ages 0-14 $100/year or $10/month Female ages 0-17 Male ages Female ages $200/year or $20/month Each policy must meet both of these minimums for the policy to be underwritten. RATES Annual rates per $1,000 Annual policy fee of $75 For Whole Life the policy fee can be waived for the second same policy on the same life insured or an immediate family member of the policyholder or life insured. Please be sure to indicate on the application when this is the case. Note that immediate family members include; spouse, children, mother, father, sister and brother. Male ages 0-14; Female ages -17; $5,000-$24,999, add $0.50 per $1,000 $25,000-$100,000, table rates Over $100,000, contact Medavie Blue Cross Male ages 15-65; Female ages $5,000-$24,999, add $0.50 per $1,000 $25,000-$249,999, table rates $250,000 and up, apply a five per cent discount to the basic rates Male ages 66-85; Female ages ,000-$24,999, add $1 per $1,000 $25,000-$99,999, add $0.50 per $1,000 $100,000 and up, table rates Annual rates per $1,000 * Click HERE (APPENDIX) for Whole Life 100 rates * 5

6 Term Products TERM 10 - Product Features Rates are guaranteed for each 10-year period and rates only increase on renewal dates. Policy is guaranteed renewable without medical exams or questions up to age 75. If the policy is renewed after age 65, the term period will only be to age 75. Policy is convertible to permanent insurance until age 65. Waiver of Premium, Accidental Death and Family Term Rider may be added as benefits to this policy. There are four categories of Term 10 life insurance: 1) Term 10 - under $100,000 2) Term 10 - $100,000 and up a) standard b) preferred c) elite TERM 10 - UNDER $100,000 Issue ages: 15 days to 65 years old. Regular underwriting available. RATES Annual rates per $1,000 Rates for $25,000-$99,999 Annual policy fee of $50 For Term 10 - the policy fee can be waived for the second same policy on the same life insured or an immediate family member of the policyholder or life insured. Please be sure to indicate on the application when this is the case. Note that immediate family members include; spouse, children, mother, father, sister and brother. Minimum Policy $25,000 Minimum Premium $100/ year or $10/month Each policy must meet both of these minimums for the policy to be underwritten. Premiums for ages 0 to 15 are based on smoker rates at age 20, regardless of the smoking habit of the applicant. Premiums for ages 16 to 19 are based on smoker or non-smoker rates at age 20, depending on the smoking habit of the applicant. Annual rates per $1,000 * Click HERE (APPENDIX) for Term 10 - under $100,000 rates * TERM 10 - $100,000 AND UP STANDARD, PREFERRED AND ELITE CLASSES ISSUE AGES RATES (MIN $100,000 POLICY) SAME FOR ALL CLASSES NO TOBACCO IN LAST: STANDARD CLASS years Annual rates per $1, months PREFERRED CLASS years Rates for $100,000 & over Three years ELITE CLASS years Policy fee $50 Five years; non smoker rates For Term 10 - the policy fee can be waived for the second same policy on the same life insured or an immediate family member of the policyholder or life insured. Please be sure to indicate on the application when this is the case. Note that immediate family members include spouse, children, mother, father, sister and brother. 6

7 TERM 10 cont d To be eligible for non-smoker rates, the applicant must be able to state that he/she has not used tobacco products or nicotine replacement products, including hashish or marijuana, within the time specified in the table. Smoker rates are not available for the Elite class. STANDARD CLASS Annual rates per $1,000 * Click HERE (APPENDIX) for Term 10 - $100,000 and up (standard) rates * PREFERRED CLASS Annual rates per $1,000 * Click HERE (APPENDIX) for Term 10 - $100,000 and up (preferred) rates * ELITE CLASS Annual rates per $1,000 * Click HERE (APPENDIX) for Term 10 - $100,000 and up (elite) rates * REGULAR AND ENHANCED UNDERWRITING Regular and Enhanced underwriting is available for each of the Term 10 classes. Enhanced underwriting offers coverage at a lower rate, if requirements are met in such areas as weight, family medical history and driving record (Regular and Enhanced underwriting is explained further in the Life Products Rate Schedule and Information Directory). * Click HERE (APPENDIX) for Regular and Enhanced Underwriting Table * CENTURY LIFE - Product Features Century Life provides lifetime coverage with guaranteed level premiums to age 100. All benefits and rates are guaranteed for the life of the contract. Century Life is a non-participating, fully guaranteed term life insurance product. Issue age: 15 days to 70 years. Premiums payable until age 100. Face amount paid on death. Waiver of premium, accidental death and family term rider may be added as benefits to this policy. Minimum Policy $10,000 Minimum Premium $200/year or $20/month Each policy must meet both of these minimums for the policy to be underwritten. The Century Life product has no non-forfeiture options and has minimum policy and premium amounts. RATES Annual Rates per $1,000 $10,000-$99,999 table rates $100,000 and over, apply a five per cent discount to basic rates Annual policy fee of $75 For Century Life - the policy fee can be waived for the second same policy on the same life insured or an immediate family member of the policyholder or life insured. Please be sure to indicate on the application when this is the case. Note that immediate family members include spouse, children, mother, father, sister and brother. Annual rates per $1,000 * Click HERE (APPENDIX) for Century Life rates * 7

8 Optional Riders FAMILY TERM RIDER With the Family Term Rider benefit, policyholders can extend coverage to the spouse and children at affordable rates. The Family Term Rider provides: Term insurance on spouse up to age 65. Term insurance on children from age 15 days to 21 years. In the event of death of the life insured, benefits will continue without further payment of premium. Each unit provides: Spouse $5,000 Children $2,000 One to five units may be purchased. Conversion Privilege: On policy cancellation, coverage on spouse and children can be converted to permanent insurance for the amount of coverage in force under the Family Term Rider. When children reach age 21, permanent insurance can be purchased without medical evidence at up to five times the coverage under the Family Term Rider. Underwriting Requirements: The policy can be purchased as a rider on Term 10, with premiums adjusting every 10 years or on Whole Life 100 or Century Life, with level premiums for the life of the contract. The policy is available with full family coverage or on children only. If multiple units of children-only coverage are purchased, the premium rate is reduced by $1 per unit. If a waiver of premium is included on the basic policy, then it must also be included with this rider. A FAMILY QUESTIONNAIRE MUST BE COMPLETED TO UNDERWRITE THIS BENEFIT. Rates Rates per unit ($5,000 / $2,000) * Click HERE (APPENDIX) for Family Term Rider rates * WAIVER OF PREMIUM RIDER If, prior to age 60, the life insured becomes totally disabled for a period of at least six months during the term of the contract, the life insurance premiums are waived for the duration of the disability. The life insured s policy would remain fully in force. * Click HERE (APPENDIX) for Waiver of Premium Rider rates for Term 10 products * * Click HERE (APPENDIX) for Waiver of Premium Rider rates for Whole Life 100 * * Click HERE (APPENDIX) for Waiver of Premium Rider rates for Century Life * * Click HERE (APPENDIX) for Waiver of Premium Rider rates for Family Term Rider * ACCIDENTAL DEATH RIDER This option provides an additional payment to the policyholder s beneficiary should the policyholder s death be the result of an accident. Accidental Death coverage can be purchased to provide the beneficiary with up to two times the amount of coverage included under the life insurance policy. This benefit is automatically included with Easy Access and Preferred Access plans; with these two products the face amount will double if death occurs by accident. 8

9 * Click HERE (APPENDIX) for Accidental Death Rider rates for Term 10 * * Click HERE (APPENDIX) for Accidental Death Rider rates for Whole Life 100 * * Click HERE (APPENDIX) for Accidental Death Rider rates for Century Life * Underwriting Requirements Applicants for Easy Access, must answer four medical questions (found in the Easy Access/Preferred Access application Form BRO-034). Preferred Access applicants must answer an additional six medical questions from the Easy Access/Preferred Access application. Applicants for Term 10, Whole Life 100, and Century Life are required to complete an application form containing questions dealing with personal information and medical history. Additional underwriting may be required depending on the applicant s age and the face amount of the policy. This additional underwriting could include any one or a combination of the following: Paramedical Blood Profile Saliva Test Urinalysis Electrocardiogram (ECG) Attending Physician Statement (APS) Please refer to the tables on page five of the Life Products Rate Schedule and Information Directory to determine if additional underwriting will be necessary. Medavie Blue Cross and Blue Cross Life reserve the right to request additional medical evidence in underwriting an application. An inspection report may be requested by Medavie Blue Cross whenever the amount exceeds $500,000. Paramedical, Blood Profile, Saliva Test and Urinalysis can be arranged through Bodimetrics Profile Ltd. at If their services cannot be obtained at your client s location, please contact Medavie Blue Cross. Medical Any licensed physician may be used as an examiner but it is preferable that the medical be arranged through the life insured s personal physician. The agent/broker should make arrangements for the paramedical, medicals or other tests and follow through with the life insured to ensure they are completed and have been forwarded to Medavie Blue Cross. Family Questionnaire If a family term rider is being requested, please ensure the appropriate application form providing evidence on the spouse and children is completed. 9

10 General Information 10 DAY FREE LOOK If the applicant is not happy with the policy he/she is entitled to return it within 10 days of policy delivery and receive a full refund of premiums. If this return is done through the agent/broker, please attempt to determine the reason for his/her dissatisfaction. The applicant is entitled to a full refund of the premiums paid. PAYMENT INFORMATION Payment can be made through pre-authorized chequing (PAC) or through direct billing (annually, semiannually or quarterly). If premiums are to be paid through PAC, the bank authorization section of the application must be completed and a cheque marked void must be attached. CALCULATION OF PREMIUMS The following indicates the method of calculation of yearly premiums: If premiums are to be paid semi-annually, multiply the yearly premium by.525 If premiums are to be paid monthly or by pre-authorized chequing, multiply the yearly premium by.09 If premiums are to be paid quarterly, multiply the yearly premium by.27 TEMPORARY INSURANCE AGREEMENT The temporary insurance agreement may be used under the following circumstances: a. if the life insured is under the age of 60; b. if the life insured is applying for $500,000 or less; c. if the life insured is paying at least 1/12 th of the yearly premium for the amount applied for; and d. if all four health questions can be answered no. If these four conditions cannot be met, no money can be accepted from the client. If the temporary insurance agreement is given to the applicant, the agent/broker should make sure the 10 conditions are read and understood by the applicant. If we are unable to complete the underwriting of the application within the 90-day period provided under the temporary insurance agreement, a refund cheque will be sent to the applicant. POLICY DELIVERY The policy should be delivered as soon as possible in person to the applicant, making sure any outstanding premiums or other requirements are obtained before the policy is released. If there is any indication the health of the life insured has changed since the application was obtained, full particulars of the change should be obtained and sent to Medavie Blue Cross together with the policy so the underwriting decision can be reappraised in light of this new evidence before the policy is put into effect. If it is not possible to deliver the policy within 60 days of receipt by an agent/broker, then it should be returned to Medavie Blue Cross with an appropriate explanation. 10

11 COMMISSIONS 1 st Year 2 nd year Renewals NOTES Easy Access 60% 5% 5% Preferred Access 80% 5% 5% Term 10 75% 10% 5% *see below Charge-Backs: If death occurs in the first or second year and the claim is paid, there are no charge-backs. If a claim is denied the contract is considered null and void and all commissions are charged back. Century Life 75% 10% 5% Subsequent renewals will be payable at five per cent for a total of eight years Whole Life % 10% 5% *TERM 10 NOTES - On renewal years in Term 10 (every 11th year) commission will be 25 per cent. If re-medically underwritten after eight years, commission will be 75 per cent. When Term 10 is converted to Whole Life 100, the commission for that year will be 100 per cent. The following year the commission will be 10 per cent and in subsequent years it will be 5 per cent. When Term 10 is converted to Century Life, the commission for that year will be 75 per cent. The following year the commission will be 10 per cent and subsequent years will be 5 per cent for a total of eight years. REMARKS Group Conversions No commission is payable unless accepted on an underwritten basis. Replacements If the policy is replacing a Blue Cross Life policy that has been out-of-force for less than 12 months, adjustments will be made to the first-year commission. LIFE PRODUCT MATERIAL Easy Access/Preferred Access Application BRO-034E Application for Individual Life Insurance FORM 104E Life Products Rate Schedule and Information Directory BRO-081E Options, Pre-approved Term Life Insurance Plan Flyer FLY-008 Life Plans Brochure BRO-080E Easy Access Reply Card RPLY-006 CONTACT INFORMATION For product information and inquiries: Reference Agent Update bulletins and Module Overview document Call our Agent/Broker toll-free line: Contact your Individual Agent Sales Manager

12 Appendix EASY ACCESS Rates (Annual Rates per $1,000) Return to EASY ACCESS 12

13 PREFERRED ACCESS Rates (Annual Rates per $1,000) Return to PREFERRED ACCESS 13

14 WHOLE LIFE 100 Rates (Annual Rates per $1,000) Return to WHOLE LIFE

15 WHOLE LIFE 100 Rates (con t ) 15

16 TERM 10 UNDER $100,000 Rates Return to TERM 10 UNDER $100,000 (Annual Rates per $1,000) 16

17 TERM 10 $100,000 AND UP (STANDARD) -Rates (Annual Rates per $1,000) Return to TERM 10 $100,000 AND UP (STANDARD) 17

18 TERM 10 $100,000 AND UP (PREFERRED) Rates Return to TERM 10 $100,000 AND UP (PREFERRED) (Annual Rates per $1,000) 18

19 TERM 10 $100,000 AND UP (ELITE) Rates (Annual Rates per $1,000) Return to TERM 10 $100,000 AND UP (ELITE) 19

20 REGULAR/ENHANCED UNDERWRITING TABLE Return to REGULAR AND ENHANCED UNDERWRITING 20

21 CENTURY LIFE Rates (Annual Rates per $1,000) Return to CENTURY LIFE 21

22 FAMILY TERM RIDER Rates (Rates per unit $5,000 / $2,000) Return to FAMILY TERM RIDER 22

23 WAIVER OF PREMIUM/ACCIDENTAL DEATH RIDER (TERM 10) Rates (Annual Rates per $1,000) Return to WAIVER OF PREMIUM RIDER Return to ACCIDENTAL DEATH RIDER 23

24 WAIVER OF PREMIUM/ACCIDENTAL DEATH RIDER (WHOLE LIFE 100) Rates (Annual Rates per $1,000) Return to WAIVER OF PREMIUM RIDER Return to ACCIDENTAL DEATH RIDER 24

25 WAIVER OF PREMIUM/ACCIDENTAL DEATH RIDER (CENTURY LIFE) Rates (Annual Rates per $1,000) Return to WAIVER OF PREMIUM RIDER Return to ACCIDENTAL DEATH RIDER 25

26 WAIVER OF PREMIUM RIDER (FAMILY TERM RIDER) Rates (Rates per unit $5,000 / $2,000) Return to WAIVER OF PREMIUM RIDER 26