LifeFund. All your biggest. financial questions. answered in one fund. Now, go live. A living life plan. Term. Life Insurance Policy

Transcription

1 All your biggest financial questions answered in one fund. Now, go live. Term LifeFund A living life plan. SM M3400 Allianz Life Insurance Company of North America

2 Term LifeFund Life insurance for the 21st century. Traditional life insurance is behind the times. An insurance policy that pays only when you die may have met your needs in the 20th century, but it falls short of meeting your financial needs in the 21st century. Now there s an alternative a whole new kind of life insurance. It s called Term LifeFund SM, the first insurance policy truly designed for the way you live today. You know that during life you may experience unwelcome, uncontrollable events: heart attacks, a stroke, cancer, accidents, even death. While you can t always prevent or even predict these tragedies, Term LifeFund gives you a resource to control their effect on your life. What if I have an accident and a serious injury keeps me from working? How will I pay bills during my recovery? What if I have a heart attack or get cancer? How will I cover the costs of treatment and still take care of my family? Sure, Term LifeFund pays if you die. But it s more than simple life insurance. Term LifeFund also meets the more immediate risks: What if I have an accident and a serious injury keeps me from working? How will I pay bills during my recovery? What if I have a heart attack or get cancer? How will I cover the costs of treatment and still take care of my family? Term LifeFund is simple, easy and logical. It s a pool of money you can use if you suffer a financial catastrophe caused by illness or disability. When you qualify for benefits from your Term LifeFund, you can use the money however you wish mortgage and car payments, groceries, medical expenses, childcare. It s up to you. What if someday you want other kinds of benefits from your Term LifeFund? No problem. As your life changes you might get married, have children, buy a home, plan for retirement you can convert your Term LifeFund to another life product that better fits your needs. Simply stated, Term LifeFund is the first life insurance policy that makes you the beneficiary. Term LifeFund provides simple, comprehensive protection for wherever life takes you. If you suffer a chronic illness or disability, you have instant access to your Term LifeFund. If you die unexpectedly, your Term LifeFund provides for your family. And, when your life changes, your Term LifeFund can change with you. With Term LifeFund here to cover the tough financial questions, you have more time to answer: What have I always wanted to do? Now, go live.

3 Term LifeFund SM Term LifeFund: Coverage for life s risks Term LifeFund offers much more than simple life insurance. This living life plan provides a death benefit, but it s also a pool of money that helps cover financial catastrophes brought on by illness or disability. Receive cash benefits when you need them the most. You can use a portion of your Term LifeFund if you become critically or chronically ill or disabled. Depending on your illness or disability, you will receive a percentage of your Term LifeFund. If you become critically ill, you can receive up to 50% of your Term LifeFund. If you become chronically ill, 1 you can receive up to 10% of your Term LifeFund annually in the form of monthly payments. If you become disabled and are receiving Social Security disability benefits, you can receive 1% of your Term LifeFund every month to age 65. Benefits received may total up to 90% of your initial Term LifeFund and under certain circumstances may exceed 90%. You re paid in cash and can use the money however you wish. And you don t have to coordinate or assign benefits with other insurance plans. Better still, during the time of illness Allianz Life waives the premium for your Term LifeFund (subject to limitations). 1 You are considered chronically ill if you have a permanent and total disability that prevents you from performing two of six Activities of Daily Living (bathing, continence, dressing, eating, toileting, and transferring) without assistance. Wherever Life takes you, LifeFund protects you. TM 1

4 Term LifeFund SM Critical illness: Benefits are based on diagnosis of your illness and are determined as a percentage of your Term LifeFund. You do not have to be terminally ill to receive benefits. Critical illness Maximum benefit amount ALS (Lou Gehrig s Disease) 50% Blindness 50% (total and permanent in both eyes) (100% if accidental) Cancer 50% (excludes: Carcinoma In-Situ, pre-malignant tumors, Stage 1 Hodgkin s, papillary cancer of the bladder, Stage A & B prostate cancer, Duke s A colorectal cancer, and all skin cancers except invasive malignant melanomas) End stage renal failure (failure of both kidneys) 50% Organ transplant 50% (lung, heart, liver, kidney, bone marrow, or pancreas) Paralysis (two or more limbs) 50% Stroke 50% (resulting in permanent paralysis or neurological damage remaining more than three months) Hearing loss 25% (total and permanent in both ears) (50% if accidental) Major heart attack 25% Minor heart attack 10% 2

5 Term LifeFund SM Taking care of your family If you die, your named beneficiary will receive the death benefit of your Term LifeFund, less any benefits you ve already received. Your beneficiary can receive the death benefit in one lump sum or choose from a variety of settlement options. If your beneficiary takes the payments over time (minimum of 10-year certain), he or she may receive 110% of the death benefit. Term LifeFund also provides an Accelerated Benefit for the death of a spouse or child. If your spouse dies, you ll receive up to 25% of your Term LifeFund in a lump sum to a maximum of $50,000. If one or more of your children dies, you can receive up to 10% of your Term LifeFund in a lump-sum payment to a maximum of $10,000 per child. Life changes so should your insurance policy Your life can change dramatically over just a few years, and with every change comes increased responsibility. That s why, as your needs evolve, Allianz Life lets you convert to another life product. This means that you can enhance your current Term LifeFund coverage to include a full package of retirement, death, and disability benefits. During your first five policy years, you can convert to another available life product without a blood test or physical exam. In policy year six and thereafter, you can still convert your policy by showing evidence of insurability. To make converting even easier, Allianz Life will credit up to three years of your Term LifeFund paid premiums to your new policy. So the premiums you pay today can contribute to the new LifeFund TM you may want tomorrow. 3

6 Term LifeFund SM Answering your questions What protection does Term LifeFund offer? Term LifeFund pays your named beneficiary a death benefit upon your death. 1 A portion of the Term LifeFund is also available for use during critical or chronic illnesses, disability or the death of a spouse or child(ren). The policy features a guaranteed level premium for the first 10 policy years. It may be purchased for any amount of protection from $50,000 to $1 million. Issue ages for Term LifeFund are 15 to 55. How does Term LifeFund protect in the event of death? The death benefit is paid in a lump sum, unless you or your beneficiary chooses a settlement option. Settlement options include: Installments for a guaranteed period (10-year certain or longer will be based on 110% of the death benefit). Installments for life with a guaranteed period (based on 110% of the death benefit). Installments of a selected amount. How does the Accelerated Benefit work? The Accelerated Benefit is paid if you experience a chronic or critical illness, disability or death of a spouse or child. When a benefit is paid, your policy s death benefit is reduced by that amount. Only one lump-sum benefit can be taken for each covered condition (except for the death of more than one child). Disability or chronic illness payments can start no earlier than two years after payment of another benefit. How can a benefit payment be used? Benefit payments can be used for any purpose. There are no restrictions and no coordination or assignment of benefits with other insurance plans. What proof is required for a benefit payment? A benefit payment requires written diagnosis by a licensed physician with supporting documentation. For disability benefits, proof that you are receiving Social Security disability benefits is required. Do benefit payments ever have to be repaid? No. Benefit payments are not loans, so there are no interest charges or penalties and they are never repaid. However, when a benefit is paid, your policy s death benefit is reduced by that amount. 1 Assumes the policyholder is also the insured 4

7 Does Term LifeFund offer a retirement benefit? No, but you may convert your policy to another life product, which will include death, disability, and retirement benefits. How does the conversion option work? During the first five policy years, you can convert the policy to another life product available for conversion without evidence of insurability. Covered conditions for which Accelerated Benefits were paid in the first five years will not be available on the converted policy. Additionally, Term LifeFund SM will not cover any conditions linked to an accident, illness or disease for which an Accelerated Benefit has already been paid under your policy. Beginning in policy year six and thereafter, you can convert the policy only with evidence of insurability. If an Accelerated Benefit has been paid, all covered conditions will be restored on the converted policy. You can only convert your policy through age 55. Does the premium I ve already paid apply to my new policy? Yes. We will credit up to three years of your Term LifeFund paid premiums to your new policy. Premium will be credited annually. For example, premiums paid in the first year will apply to the first year of your converted policy, premiums paid in the second year will apply to the second year of your converted policy, and so on. What are my renewal options? The policy is renewable for another 10-year, guaranteed level premium period until age 55 with underwriting. Premiums are calculated based on your current attained age. If you are over age 55 or if you decline underwriting, you can renew your policy for a single-year term. The Accelerated Benefit rider is available if you renew after age 55. Are Term LifeFund benefits taxable? The Accelerated Benefits offered under this policy are intended to qualify for favorable tax treatment under the Internal Revenue Code of If the Accelerated Benefits qualify for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation. Consult your tax advisor about your specific situation. Are rollovers and exchanges allowed? Tax-free 1035 exchanges are not allowed on Term LifeFund. Who can own the policy? Term LifeFund may be owned by the insured or by a third party. If you are the policyholder, but are not the insured, then upon your death the policy ownership passes to the executor of your estate or to the contingent policyholder if one is listed on the application. What about pre-existing conditions? Pre-existing conditions are defined as any covered condition that occurs within 30 days after the policy effective date and for which medical treatment or advice was given or recommended during the six months prior to the policy effective date. Benefits will not be paid on preexisting conditions. What is the difference between a major and minor heart attack? A minor heart attack is indicated by chest pain, EKG changes and elevation of cardiac enzymes. A major heart attack is indicated by chest pain, EKG changes, elevation of cardiac enzymes, and ejection fraction of less than 35%. Thank you for choosing Term LifeFund.

8 Our top priority is the safety of your money All policies are issued by Allianz Life Insurance Company of North America, a member of the Allianz Group. With over 700 subsidiaries in more than 70 countries, the Allianz Group is one of the world s leading providers of integrated financial services. Our goal is to provide policyholders with wealth management products that can help meet today s needs and financial objectives, with a product philosophy of offering fair and equitable values on each policy we issue. Foremost in our minds is the safety of the money you entrust to our care. Allianz Life has consistently been assigned financial strength ratings by Standard & Poor s and A.M. Best that are among the highest available. It is one of a select group of major insurance companies to receive such high ratings. These independent agency ratings are based on an analysis of financial results and evaluation of management objectives and strategies. The ratings do not indicate approval by the analysts and are subject to change. Innovative products, exceptional customer service, and sound financial strength make Allianz Life the place to turn to help meet your retirement objectives. Term LifeFund SM is a term life insurance policy. Policies are issued by Allianz Life Insurance Company of North America (generic form number P1700N with PR1011N). Agent name: License number: Allianz Life Insurance Company of North America PO Box Minneapolis, MN / Product availability and benefits may vary by state (R-4/2004)