Promise Whole Life MetWINS User Guide

Transcription

1 General Description MetLife Promise Whole Life policy is a single life permanent product that may be an ideal solution for lifetime protection with additional benefits for the policy owner. Utilizing locked in death benefit, cash value and premium guarantees, this product offers the ability to utilize policy values via loans and withdrawals to supplement income and can create estate liquidity and solutions for business continuation planning needs. Several optional riders are available to help customize the policy. This is a participating product and offers the opportunity to receive dividends. Although dividends are not guaranteed, they can be used in many ways, including increasing cash value and death benefit of the policy over time. The product has guaranteed cash value as long as clients pay their premiums. Cash Value Life insurance can be designed to provide clients with cash accumulation while still providing protection. Tax deferred growth and tax favored distributions coupled with the protection of an income tax-free death benefit, this asset is an appealing solution for supplemental income, as well as efficient wealth transfer. Whole Life has a guaranteed death benefit; it is typically designed to endow on a guaranteed cash value basis and also has the potential for dividend payments. For the base policy, there is limited flexibility in premium payment. Premium payment flexibility can be obtained through the use of riders and/or potential dividend payments. In regard to death benefits, the same applies. Riders and potential dividend payments may increase the death benefit from its level starting point. MetLife Investors USA Insurance Company Metropolitan Life Insurance Company 5 Park Plaza, Suite Park Avenue Irvine, California New York, New York PEANUTS 2010 Peanuts Worldwide LLC Page 1 L [exp0212][All

2 Table of Contents: General Description...1 Policy Features....3 The Enricher. 3 Guaranteed Paid Up...3 Flex Term Rider Description. 3 MetWINS Start Up Screen. 4 Change To feature..4 Agent Functionality 5 Client Screen 6 Client Information.. 6 Policy Effective Date.. 6 Risk Class / Issue Ages...6 Flat Extras. 6 Unisex Rates. 6 Revised Illustrations...6 Plan Design Screen Face Amounts..7 Policy Design Options 7 Premium Types 8 Flex Term Rider 8 FTR Solves.8 FTR Solve Descriptions Enricher Options...10 Paid Up Options Premium Modes Whole Life / Term Policy Companion Concept..12 WL/Term Policy Companion Solves..13 Policy Options Screen..14 Dividend Options Transfers...14 Term Conversions Income Options.15 Riders...16 Acceleration of Death Benefit Rider...16 Accidental Death Benefit Rider...16 Applicant Waiver of Premiums Benefit Children s Term Insurance Rider...16 Disability Waiver.. 17 Guaranteed Insurability Waiver...17 Quick Calc Screen Reports 19 PWL Outputs..20 PEANUTS 2010 Peanuts Worldwide LLC Page 2 L [exp0212][All

3 Policy Features: Guaranteed cash value Guaranteed level premiums Potential for Premium offset (use of Dividends) Guaranteed paid-up limited pays (The Enricher) The Enricher: The Enricher enables the policy owner to pay additional premiums that purchase amounts of single-premium paid-up permanent life insurance. This allows the policy owner to increase life insurance protection and cash value, and inject some premium flexibility into the product. This rider is not available with policies that have FTR. Guaranteed Paid Up: A guaranteed limited-pay policy can be created using the Enricher Premium payments that would place the base policy into a paid-up status. The illustration software (MetWINS) will solve for an amount of The Enricher premiums that will accumulate sufficient guaranteed rider cash value to support a fully paid-up policy. Flex Term Rider (FTR): The FTR adds a term component to the Whole Life policy. The FTR supplements the base policy with a combination of term and paid up insurance. The term component will decrease as dividends and FTR premiums are used to purchase additional paid-up insurance. Eventually, the term component may be replaced with paid-up insurance. On each policy anniversary, if policy dividends are declared by the Company, they will be directed to the FTR. If the dividend option is changed after the first anniversary, the term component will be dropped from the FTR. FTR provides a guarantee on the total coverage amount to age 85. FTR is available at issue only with an initial MetLife Promise Whole Life face amount of at least $50,000; the minimum rider amount is $10,000. The initial face amount for the FTR is not allowed to exceed the base policy face amount (or 50% of the total face amount of insurance). This rider is not available with Paid-Up policies or policies that have The Enricher rider. Did you know that Whole Life policies have a cash accumulation feature? Assuming that the policy is properly funded and does not exceed IRS limits, the cash value in your policy accumulates on a tax-deferred basis and can be withdrawn or taken out as a tax-free loan. You can user this money to supplement your retirement income or for any reason you see fit. Loans and withdrawals reduce the policy s cash value and death benefit. PEANUTS 2010 Peanuts Worldwide LLC Page 3 L [exp0212][All

4 Start Up Screen: 8. Product Template: Select the Product Template you wish to use. If this is the first time running this product in MetWINS you may have to create a Template before Continuing on. 9. Click OK to continue to the Promise Whole Life Edit Proposal Screens. Client Screen: Change To Another Life Product 1. Proposal Action: Select Create a New Proposal 2. Proposal Type: Select New Business 3. Concept: Select Basic Life Proposal 4. Product Class: Select Whole Life 5. Active Product: Select Promise Whole Life Presentation: Full Entry 7. Agent: Select Agent Name from the drop down list. Click Add to create a new Agent The Change To Product Class and Product drop-downs allow the user to change from the current Promise Whole Life product to any product within the Life product line. The system transfers Client, Plan and Rider information to the new product without returning to the Start-Up Screen. PWL can be changed to either a GAUL or LASUL product. PEANUTS 2010 Peanuts Worldwide LLC Page 4 L [exp0212][All

5 Client Screen: Agent Functionality To update your Agent Information Click on the Agent Button. The Agent Information Dialog will appear. Update your Agent Information and Click OK. The Agent drop down menu give the user the ability to change the Agent or update the Agent Information without returning to the Start- Up Screen. PEANUTS 2010 Peanuts Worldwide LLC Page 5 L [exp0212][All

6 CLIENT SCREEN: CLIENT INFORMATION Flat Extras Check the Permanent or Temporary Flat Extra checkboxes to enter a Flat Extra rate per thousand and duration. This is an extra charge added to the policy premium to cover the higher mortality cost associated with a person with a substandard risk class. (Flat Extra s are not available with the Elite Rating Class). A First and Last Name must be entered to run an illustration or to move on to other screens. Policy Effective Date The Policy Date is used to determine the insurance age and to measure policy years, policy months and anniversaries. RISK CLASSES / ISSUE AGES Issue age for the insured is based on the insured s age nearest birthday as of the policy date. Backdating the policy date to conserve age is allowed according to normal state guidelines but can be no more than 180 days (state variations may apply) from the application signature date. The following risk classes and issue ages are available: Unisex Rates Unisex rates are used for all issues in Montana and elsewhere when the policy is issued as a term, condition or benefit of employment. Please check the current state availability list for the latest approval status of the base policy and policy riders. Revised Illustration Checking Revised Illustration will show that is illustration is revised on the cover page and signature page. PEANUTS 2010 Peanuts Worldwide LLC Page 6 L [exp0212][All

7 Premium Amount: The system will solve for the level face amount to maturity using the amount entered in the premium box, using the Better Band Solve. Schedule Outlay: If selected the Schedule Outlay push button will become enabled. Outlay Options: Specified Outlay Minimum Premium Maximum Income Loan Repayment FACE AMOUNT POLICY DESIGN OPTIONS Face Amount: Enter your desired Face Amount & the system will solve for the premium based on your specified duration PEANUTS 2010 Peanuts Worldwide LLC Page 7 L [exp0212][All

8 PREMIUM TYPES Base policy premium for MetLife Promise Whole Life is level and will be payable until the policy anniversary on which the insured s attained age is 100. The policy will then continue as fully paid-up until maturity at attained age 120. Premium rates will vary based on issue age, sex, smoking status, pricing band and rating class. FLEX TERM RIDER allows your client to purchase the coverage they need in a way that may be more affordable than a 100% Whole Life solution. On each anniversary, if policy dividends are declared by the Company, they will be directed to the FTR. If the dividend option is changed after the first anniversary, the term component will be dropped from the FTR. FTR provides a guarantee on the total coverage amount to age 85. FTR SOLVES IN METWINS FTR Face Amt Design Solve drop down with the following choices: Specify Death Benefit & Base Face Specify Base face & FTR Face Specify Death Benefit w/max Term Blend Specify Total Death Benefit & FTR Blend FTR Premium Design Solve drop down with the following choices: Specify Premium Premium to Guarantee Coverage Minimum Premium to Guarantee Coverage to Age 85 Non Guar Premium Paid X (Curr Scale) Maximum Premium * Please note that Premium to Guarantee Coverage & Minimum Premium to Guarantee Coverage to Age 85 are the only FTR premium solves available when run with WL / Term Policy Companion Concept. GENERAL DESCRIPTION The FTR adds a term component to the Whole Life policy. The FTR supplements the base policy with a combination of term and paid-up insurance. The term component will decrease as dividends and FTR premiums are used to purchase additional paid-up insurance. Eventually, the term component may be replaced with paid-up insurance. The rider PEANUTS 2010 Peanuts Worldwide LLC Page 8 L [exp0212][All

9 FTR FACE AMOUNT SOLVE DESCRIPTIONS Specify Death Benefit & Base Face - Solve for FTR Face Amount using both the Total Specified Death Benefit & Base Face amount entered. Specify Base Face & FTR Face - Solve for the premium amount using the Specified Base Face & FTR Face amounts along with allowing the user to then specify the FTR premium to fund the FTR Face Amount. Non. Guaranteed Premium FTR Paid X (Curr. Scale) - Solve for premium required using non guaranteed values (Curr. Scale) and the FTR face amount entered to pay the FTR up at a specified duration. Maximum Premium - Solve for the maximum premium allowed based on the FTR Face Amount specified. Specify Death Benefit w/max FTR Blend - Solve for the Whole Life Specified Death Benefit with the Maximum Flexible Term Rider Blend allowed. Specify Total Death Benefit & FTR Blend - User specifies the desired Total Death Benefit Amount and FTR Blend, the system will then solve for the premium based on their specified duration to keep the policy paid up until age 100 on a guaranteed scenario. FTR PREMIUM SOLVE DESCRIPTIONS Specify Premium - Solve to support the specified FTR Face using the FTR premium amount entered by the user to have fully paid up FTR coverage at age 85 based on the current dividend scale and the premium duration specified. Premium to Guarantee Coverage - Solve for the premium to Guarantee Coverage to age 85 based off the FTR Face amount and premium duration entered. The intention being that the client would be paying enough FTR premium to maintain the guarantee to age 85. Minimum Premium to Guarantee Coverage to Age 85 - Solve for the Minimum G85 premium to keep FTR face amount entered by the user to age 85. The intention being that the client would be paying enough premium to maintain the guarantee to age 85. PEANUTS 2010 Peanuts Worldwide LLC Page 9 L [exp0212][All

10 ENRICHER OPTIONS GENERAL DESCRIPTION The Enricher enables the policy owner to pay additional premiums that purchase amounts of single-premium paid-up permanent life insurance. This allows the policy owner to increase life insurance protection and cash value, and inject some premium flexibility into the product. AVAILABILITY The Enricher is available at issue and can be added as a Current Date Addition (CDA) subject to administrative rules in effect at the time to policies with face amount of $25,000 and above. The Enricher is not available with policies issued as part of a qualified pension plan. The Enricher is not available in the illustration system in combination with the Flex Term Rider. METWINS ENRICHER OPTIONS Select the Enricher Premium Option: Choices include None, Specified Level, Specified Variable, Solve, and Equal to Base Premium. If Specified Variable is selected, the Schedule Enricher Options button will become enabled. ENRICHR WAIVER If the base policy includes a Disability Waiver, the owner may elect to waive a Enricher premium. The owner will select an annual amount of Enricher premium that will be waived if the insured becomes disabled. In the illustration system the Enricher Waiver checkbox will become enabled when both Enricher and the DW Rider are selected. PEANUTS 2010 Peanuts Worldwide LLC Page 10 L [exp0212][All

11 PAID UP OPTIONS Solve for Death Benefit System solves for the Paid Up DB Amount based on illustrated scenario. Withdrawal Non-Guar Excess Cash When Paid Up? - This feature allows the base policy to remain fully paid-up while allowing the policyholder to withdraw their excess cash. When the option Yes is selected, MetWINS will automatically generate an additional paid up report entitled, Supplement Illustration Paid Up Death Benefit Report with Non-Guar Excess Cash. This report will show the impact of withdrawing the excess Non-Guarantee Cash Value in the policy. PREMIUM MODES The following modal premiums are available at issue: Annual Semi-Annual Quarterly Monthly bank draft GUARANTEED PAID UP A guaranteed limited-pay policy can be created using Enricher premium payments that would place the base policy into a paid-up status. The illustration software will solve for an amount of The Enricher premiums that will accumulate sufficient guaranteed rider cash value combined with the base policy guaranteed cash value to support a fully paid up policy. In MetWINS your premium payment options available are to either specify a Year or Age or selecting between All Years, Until Retirement or solving for duration to achieve desired result. METWINS PAID UP OPTIONS Base Face Paid Up Paid up DB Amount will be equal to the Specified Face Amount Reduced Paid Up Amount can be entered by the user PEANUTS 2010 Peanuts Worldwide LLC Page 11 L [exp0212][All

12 WHOLE LIFE / TERM POLICY COMPANION CONCEPT The Whole Life Term Policy Companion concept in MetWINS allows the user to compare the Promise Whole Life product to the MetLife Guaranteed Level Term Product. This concept can be run with or without the new Flex Term Rider. Multiple Solve options to choose from: Specify Whole Life Face Amount Specify Whole Life Face Percent Max Whole Life Min Term Min Whole Life Max Term Original Total Face Amount Maintained CONVERTING THE TERM POLICY WITH THE COMPANION CONCEPT On the Policy Options tab the user can convert the new Term Policy to a new Whole Policy in a specified year. METWINS WL Term Companion Options: Term Plan field allows you to choose between MLI GLT 10, 15, 20 & 30 TERM RIDERS AVAILABLE WITH CONCEPT: Choose between entering the Total Term & WL Face Amount or Total Term & WL Premium PEANUTS 2010 Peanuts Worldwide LLC Page 12 L [exp0212][All

13 METWINS WL Term Companion SOLVE DESCRIPTIONS: Specify Whole Life Face Amount - Solve for the premium associated with the WL Face Amount specified and then solve for the remaining term Death benefit and associated premium based on the total face amount entered. Specify Whole Life Face Amount with FTR - Solve for the premium associated with the WL Face Amount specified, including the FTR Face Amount Solve specified and then solve for the remaining term Death benefit and associated premium based on the total face amount entered. Min Whole Life Max Term - Solving for the lowest Whole Life premium and face amount and maximum Term Death Benefit. Maintain Total Face Amt w/wl Amt of Original Whole Life - Solve is designed to add an ENRICHER rider so that the base policy and ENRICHER rider death benefit will be equal to the initial base plus term face amount at the end of the level term period. Specify Whole Life Face Percent - Solving for the Whole Life Face Amount based on the Whole Life Face Percent and the Total Face Amount entered and then solve for the remaining term Death Benefit. Specify Whole Life Face Percent with FTR - Solving for the Whole Life Face Amount based on the Whole Life Face Percent and the Total Face Amount entered including FTR Face Amt Design and then solve for the remaining term Death Benefit. Min Term Max Whole Life - Solving for the lowest Whole Life premium with the highest Whole Life Death Benefit and minimum Term Death Benefit. PEANUTS 2010 Peanuts Worldwide LLC Page 13 L [exp0212][All

14 DIVIDEND OPTIONS Dividends, if declared by the Board of Directors, are expected to be paid beginning at the end of the second policy year (end of fi rst year for policies $20,000,000 and above). They will vary by band, issue age, duration, sex and smoking status. The following dividend options are available: Paid Up Additions (AI) Reduce Premiums Div. with Interest (DWI) Paid in Cash (Cash) Repay Loan Repay Loan Interest Flexible Term Rider (FTR)* this dividend option is the only available option allowed when the Flex Term Rider is selected. Secondary Dividend Options: Secondary dividend options are available when the primary dividend is either Reduce Premiums, Repay Loan or Repay Loan interest. The following secondary dividend options are available*: Excess to Cash Excess to AI Excess to DWI Excess to Premium Reduction Excess to Repay Loan Excess to Repay Loan Interest * secondary dividend option will vary depending on what primary dividend is selected 1035 NET CASH TRANSFERS * Dividends can be used to purchase term insurance and paid-up insurance under the FTR. If the policy includes the FTR, FTR is the automatic dividend option at issue. This option can be changed at the end of the first year; however, changing this option will terminate the term portion of the FTR. DIVIDEND OPTION SELECTIONS IN METWINS Checking Change Dividend Option gives the user the option to change the Dividend Option starting in policy year 2. Checking Alternate Dividend Assumption gives the user the option to change the Dividend Rate to be illustrated. Check the 1035 s Net Cash Transfer checkbox to launch the 1035 Exchange screen. Select your 1035 Net Cash Transfer options. PEANUTS 2010 Peanuts Worldwide LLC Page 14 L [exp0212][All

15 TERM CONVERSIONS Term conversions to MetLife Promise Whole Life are allowed within limits regarding age and amount of insurance. Additional benefits and riders may be included in the new policy issued from a term conversion with company approval and may be subject to underwriting. Conversions from MetLife Group term policies are not allowed. With the PWL product the software allows for Converting your Disability Waiver. Promise Whole Life MetWINS User Guide INCOME OPTIONS Loans New and increased loans, as well as loan repayments and payment of loan interest, are allowed. Loan balances or interest may be repaid at any time while the policy is inforce. Policy loan interest will continue to accrue and be due each anniversary beyond attained age 100, if applicable. INCOME OPTIONS IN METWINS Income Design choices are None, Specify Level, Specify Schedule, and Solve for Maximum. If Specify Schedule is selected the Income Schedule push button will be available and the below screen will allow you to schedule your income. PEANUTS 2010 Peanuts Worldwide LLC Page 15 L [exp0212][All

16 RIDERS AVAILABILITY The ADB is available from age 0 to 65. For issue ages of 0, no ADB coverage applies until age one. ADB may be added after issue. Maximum issue is $500,000 of ADB on any one life. ACCELERATION OF DEATH BENEFITS RIDER (ADBR) GENERAL DESCRIPTION The ADBR provides for a discounted payment of all, or a portion, of the amount that would normally be paid to the beneficiaries upon the death of the insured under the policy. AVAILABILITY This rider is available to all issue ages and risk classes. It is also available after issue. ACCIDENTAL DEATH BENEFIT (ADB) GENERAL DESCRIPTION If the insured dies as a result of an accident, we will pay additional insurance equal to the base policy face amount, up to issue limits. APPLICANT S WAIVER OF PREMIUMS BENEFIT (AWB) GENERAL DESCRIPTION This benefit provides for the waiver of premiums if the adult applicant for a policy on the life of a juvenile insured dies or becomes totally disabled before the policy anniversary when the adult applicant is attained age 60. The waiver applies only to premiums due prior to the policy anniversary at the insured s attained age 25. Premiums will no longer be waived if and when the applicant is no longer disabled. AVAILABILITY The AWB is available at issue only to the adult applicant of a juvenile insured; issue ages of 0 to 14. The adult applicant requesting coverage must be issue age 55 or younger. CHILDREN S TERM INSURANCE RIDER (CTIR) GENERAL DESCRIPTION Provides term insurance coverage for each child, stepchild or legally adopted child of the insured, who is under age 18 on the date of application for this rider. Upon issue, all eligible children who are listed on the application will be covered. Any child who is born, legally adopted or becomes a stepchild after the date of the application will be covered automatically as he or she becomes eligible. Coverage for any additional insured child will not begin before the child is 14 days old. Half coverage for each insured child begins at age 15 days and continues to age six months, full coverage begins at age six months or the date of adoption, if later. PEANUTS 2010 Peanuts Worldwide LLC Page 16 L [exp0212][All

17 AVAILABILITY Available for issue ages 18 to 55 of the primary insured. This rider is available at or after issue. This rider will be issued only in the Standard class. The base policy must be in one of the following underwriting classes: DISABILITY WAIVER OF PREMIUMS BENEFIT (DW) GENERAL DESCRIPTION If the insured becomes totally disabled, on or before the policy anniversary on which the insured is age 60, for a continuous period of at least six months, policy premiums will be waived for as long as the total disability lasts. If the disability begins after the policy anniversary at age 60, but prior to the policy anniversary at age 65, premiums will be waived until attained age 65. GUARANTEED ISSUE RIDER (GIR) GENERAL DESCRIPTION This rider guarantees the policy owner the right to buy additional insurance policies, on the life of the insured, at set option dates without evidence of insurability. AVAILABILITY The GIR is available on policies with face amounts of $10,000 and over, at issue ages 0 to 50. AVAILABILITY The DW is available at issue ages 0 to 59. Amounts in excess of the above limits, up to a maximum of $4 million for ages 16 through 60, $1 million for ages 1 through 15 and $400,000 for age 0, will be considered on an individual basis. PEANUTS 2010 Peanuts Worldwide LLC Page 17 L [exp0212][All

18 QUICK CALC SCREEN IN METWINS The Quick Calc Tab will quickly preview basic values of your proposal. The Quick Calc screen is not interactive; therefore to adjust any values you need to go back to the Plan Design Tab. The Whole Life Premium frame displays the Base Policy Premium, Enricher Premium, FTR Premium, Additional Rider Premium and Total Premium Amount. If the Flex Term Rider is selected the screen displays the Base to FTR Premium Splits for: 75/25, 50/50 and 25/75. In the display frame select how the illustration will show policy years, either by Duration (default), insured s Age or Year. The Death Benefit frame displays the Base Face Amount, FTR Rider Death Benefit, Total Enricher Option Rider Death Benefit Amount and the Total Death Benefit Amount. PEANUTS 2010 Peanuts Worldwide LLC Page 18 L [exp0212][All

19 AVAILABLE PWL REPORTS Cost of Waiting Report. The Term Details push button will become enabled in order to enter additional information for the Term & Invest the Difference Report or the Term Details Report. Additional information for Cost of Waiting & Net Cost Per Dollar Report. Underwriting Report Internal Rate of Return Report Whole Life Input Summary Net Cost Per Dollar Report Term and Invest the Difference Report Term Comparison Report Policy Values Ledger Policy Values Ledger (Alt. Div. Scale) Cost of Waiting Simplified Income Protection Program Paid By Ledger To show the Agent Picture on the cover page, or to exclude the cover page graphics, check the corresponding checkbox. Additional information for the Term & Invest the Difference and Term Comparison Reports. The Supplemental Information push button will become enabled in order to enter additional information for the Net Cost per Dollar Report or the PEANUTS 2010 Peanuts Worldwide LLC Page 19 L [exp0212][All

20 PROMISE WHOLE LIFE OUTPUTS PREMIUM SUMMARY COVER PAGE PEANUTS 2010 Peanuts Worldwide LLC Page 20 L [exp0212][All

21 SIGNATURE PAGE BASIC LEDGER PEANUTS 2010 Peanuts Worldwide LLC Page 21 L [exp0212][All

22 FLEX TERM RIDER REPORT PAID UP DEATH BENEFIT REPORT PEANUTS 2010 Peanuts Worldwide LLC Page 22 L [exp0212][All

23 WHOLE LIFE / TERM PLAN COMPANION CONCEPT REPORT Promise Whole Life MetWINS User Guide PEANUTS 2010 Peanuts Worldwide LLC Page 23 L [exp0212][All