FlexTerm Series IX Term Life Insurance. Marketing Guide

Transcription

1 FlexTerm Series IX Term Life Insurance Marketing Guide

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3 Expect More With Ohio National, you ll get the low rates you expect... and a whole lot more! Bottom-Line Pricing Ohio National continues to have some of the most affordable term life insurance rates in the industry. Across-the-board, our 10-, 15- and 20-year rates are hard to beat! There s no doubt about it, young or old, best class or standard, we remain a low-cost leader in the term industry. Outstanding Conversion Options Ohio National brings value beyond price to your clients. So when you re pricing term insurance for your clients, consider the option to convert to a company s permanent protection products and, specifically, to which product it can be converted. Ohio National s Plus product allows your client to choose from all of our competitive permanent policies what options do they get from other carriers? Fast and Easy Applications When it comes to your term applications, Ohio National gives you choices. Use our standard application for face amounts under $5 million, or for more convenience and easy processing, use our EasyApp fax or EasyApp Mobile online application process! 1

4 Portfolio Overview Basic vs. Plus Ohio National s 10-, 15- and 20-year level term insurance is available as Basic or Plus policies. Basic policies are just that they are less expensive and the conversion privilege is limited to a specific product chosen by the Company at the time of conversion. Additionally, not all riders are available with the Basic policies. Plus policies are value-oriented. For a nominal increase in price, they have expanded conversion options (see Conversion Privileges) and, currently, all riders are available on these policies. Premium Rate Bands Ohio National s term life insurance portfolio (except for YRT Plus II) has three premium rate bands based on the policy s death benefit: $100,000, $500,000, and $1,000,000. The top two bands provide a price break for clients requiring larger amounts of term life insurance a competitive advantage in large case markets. Underwriting Classes Our term portfolio has six underwriting classes: Super Preferred NS Preferred NS Select NS Standard NS Select Smoker (all tobacco) Standard Smoker (all tobacco) Having six rating classes allows the healthiest insureds to obtain the the best rates possible. Refer to our Life Underwriting Requirements Brochure (Form 6149) to determine which rating class is appropriate for your client. (Underwriting requirements also can be accessed in the illustration software.) Recap Term Recap Term is designed for clients who plan to convert their term life insurance policy to a permanent life insurance policy within the first five years of coverage. This product is ideal for clients who anticipate an increase in income in the near future, e.g., young doctors, dentists, or entrepreneurs. A 10-year guaranteed level premium policy, Recap Term is fully convertible to any available Ohio National permanent policy. All FlexTerm Series riders are available with this product. The unique benefit of Recap Term is the cumulative conversion credit. After the first year, this credit lets policyholders recapture all premiums paid on their term life insurance policy and apply them to any available permanent Ohio National life insurance product. The cumulative credit applies only during the second through fifth year of the policy. After the fifth policy anniversary, and through the tenth policy anniversary, the conversion credit is equal to one year s premium. The conversion credit does not apply to substandard premiums and is limited to a maximum of $5 per $1,000 per year of premium being applied as conversion credit. 2 YRT Plus II offers only Standard Unisex rates.

5 YRT Plus II YRT Plus II is an annually renewable term life insurance policy. The premium rates are fully guaranteed and increase on an annual basis. YRT Plus II is designed for your clients who need temporary protection and the option to renew for up to 10 years. It is convertible during the first three years to any available permanent life insurance policy. The actual underwriting class and gender will be used upon conversion. A conversion credit equal to the annual premium (up to $5 per $1,000 of face amount) is available. YRT Plus II has one underwriting class, Standard Unisex, and is not available for table-rated cases. The Waiver of Premium for Total Disability (WPD) Rider is the only rider available. There are no premium rate bands with this product. Note: No commission is paid on YRT Plus II sales. Conversion Privileges Term 10, Term 15 and Term 20 are convertible only to a product designated by the company, currently Virtus Basic, a universal life insurance policy. Term 10 Plus, Term 15 Plus, Term 20 Plus, Recap Term and YRT Plus II are convertible to any available Ohio National individual permanent life insurance policy. The contractual conversion right allows a term life insurance policy to convert only to an all-base permanent life insurance policy. However, our current practice is to allow conversion to a policy that is blended with an additional coverage rider or Plus Rider,* but only if the rider face amount represents no more than 50 percent of the total face amount of the combined policy. Current company practice is subject to change without notice. Term life insurance policies offer a noncommissionable conversion credit to policyholders after the first year. The credit is equal to one annual term insurance premium (except for Recap Term). Term life insurance riders do not count toward the conversion credit; only the premium for base policy face amount is used. The maximum annual premium that will count for conversion credit is $5 per $1,000 of face amount. Conversion is only available through the level term period of a policy, or the policy anniversary nearest the insured s 70th birthday, whichever occurs first. Conversion may only occur on a policy s monthly anniversary. Available products for conversion are limited to those available in the term life insurance policy s issue state at the time of conversion. * Additional Coverage Rider for V-Pro UL. Plus Rider for Prestige 100 whole life policies. 3

6 Optional Riders Waiver of Premium for Total Disability (WPD) Rider This rider provides continuation of insurance protection without payment of premiums in the event of total disability of the insured. Premiums are waived on the due dates, not during grace periods. Issue ages: Maximum $5 million per life; total face amount: combined face amount (by Company practice) Maximum benefit amount: $15,000 per month Elimination period: Six months Disability is defined as own occupation for the first five years and any occupation after five years. If disability occurs on or after the policy anniversary nearest age 60, then premiums are waived only to the anniversary nearest age 65. This rider may be added after issue, subject to underwriting, and is not available for ratings above Table D. Guaranteed Purchase Option (GPO) Rider This rider guarantees the policyholder s right to purchase additional coverage at prescribed points in the future without providing evidence of insurability. It is not available on rated insureds and is available only at issue. Additional insurance can be purchased on the specified dates shown at right: Issue Ages Periodic Option Date Under The periodic option date is the policy anniversary nearest the insured s age. Issue ages: Minimum face amount: $10,000 Maximum face amount: $100,000 Ninety days after the insured marries or becomes a parent, the policyholder can exercise the option to increase coverage by the option amount. Exercising this option will take the place of the next scheduled option date. This rider is only available on 10-, 15- and 20-year Plus policies. Not available with YRT Plus II. 4

7 Accidental Death Benefit (ADB) Rider This rider provides a supplemental death benefit if the primary insured s death results directly from accidental bodily injury within 180 days of an accident. This rider is not available for ratings above Table D. Coverage expires at the end of the policy anniversary date nearest age 70. This supplemental death benefit amount is doubled if the insured dies resulting from an injury received while a passenger on a public conveyance. Issue ages: Minimum face amount: $2,000 Maximum face amount: $200,000 Not available with YRT Plus II. Lifetime Advantage Rider (LAR) aka Accelerated Death Benefit The LAR allows for payment of an accelerated death benefit when the insured is diagnosed to be terminally ill (with a life expectancy of 12 months or less). The policyholder may receive up to 50 percent of the policy s death benefit subject to a $250,000 maximum. Payment of the benefit may not reduce the base policy below the minimum issue face amount for such policies. If the client exercises this option, a charge will be deducted from the policy s remaining death benefit. The charge varies according to current interest rates, but should generally not be more than 10 percent of the benefit taken. Clients should consult with their tax adviser regarding the taxability and status of ben efits under this rider. This rider is available at issue or upon request anytime while the policy is in-force, with no rider charge. Not available on YRT Plus II. Family Term Rider This rider provides specified term death benefits for children of the primary insured* up to the amount of $1,000 for every $5,000 of the base policy death benefit. The coverage expires on the day before the child s 25th birthday or the policy anniversary date nearest the insured s 65th birthday, if earlier. Issue ages of primary insured: Issue ages of children: 15 days up to age 21 Minimum face amount: $1,000 Maximum face amount: Convertibility: $1,000 per $5,000 of the base policy face amount, up to a maximum of $25,000. A child may convert his or her coverage to any available permanent policy issued by Ohio National. The new policy s face amount may be up to five times the coverage amount of the rider, but no more than $50,000. Conversion must occur prior to the expiration of the term coverage. This rider is only available on 10-, 15- and 20-year Plus policies. Not available with YRT Plus II. * By birth or adoption. 5

8 State-of-the-art Processing EasyApp and EasyApp Mobile EasyApp and EasyApp Mobile can help make the term application process easier. EasyApp streamlines the application process for you by taking administrative details off your hands. Simply complete the EasyApp and fax it to the dedicated EasyApp fax number: EasyApp Mobile works the same way, but you submit your term application online and immediately receive a policy number. You can use EasyApp Mobile on your tablet, laptop or desktop PC. EasyApp and EasyApp Mobile are available on 10-, 15- and 20-year term life insurance products and on Recap Term. They are not available with YRT Plus II or on face amounts over $5 million. Please refer to Form 6606 for full details. After faxing in your application or submitting it online, you mail any other accompanying materials to Underwriting. We take it from there. We ll order the required paramedical exams and, if necessary, Attending Physician Statement (APS). Fax or Upload Full Applications You may also fax or upload your full term applications. Fax your complete term application to If you have 1035 Exchange paperwork (Forms 9323 and 9324), fax these forms along with the application, and then send the original forms in regular mail. Upload your complete applications by following instructions on ON-Net > Quick Hits > Upload a Life/DI App. All checks and any original 1035 Exchange paperwork must be mailed to the home office. APS Express The APS Express form is attached to the back of every life insurance application and can be used with every non-easyapp case. The purpose of APS Express is to give you the opportunity to have an underwriter determine if he or she needs to order an APS on a particular case before the application is entered into our policy issue system. All you have to do is complete the form and fax it to underwriting. This can save you a week or more of processing time. Do not use APS Express with the EasyApp process. Please note: When providing treatment dates for a physician, please list the one or two most likely health issues that would cause an APS to be ordered. 6

9 Term Specifications 10-Year Level Premium 15-Year Level Premium 20-Year Level Premium Product Strength Low, fully guaranteed level Low, fully guaranteed level Low, fully guaranteed level premiums premiums premiums examples Protection sales Plus version offers choice of Plus version offers choice of Plus version offers choice of conversion products conversion products conversion products Sales Support and Literature For Career/PPGA Marketing, call , option 3. Minimum Issue $100,000 $100,000 $100,000 Issue Ages Smoker and Select Smoker Bands $100,000 $100,000 $100,000 (Higher bands with reduced rates) $500,000 $500,000 $500,000 $1,000,000 $1,000,000 $1,000,000 Underwriting Classes Super Preferred NS Super Preferred NS Super Preferred NS Preferred NS Preferred NS Preferred NS Select NS Select NS Select NS Standard NS Standard NS Standard NS Select Smoker Select Smoker Select Smoker Standard Smoker Standard Smoker Standard Smoker Premium Guarantee Period 10-Year 15-Year 20-Year Conversion Options Expanded = Plus products Both expanded and limited Both expanded and limited Both expanded and limited allow conversion to all available conversion options are available conversion options are available conversion options are available permanent life insurance offered with credit for 10 years or the with credit for 15 years, or the with credit for 20 years, or the by the company. policy anniversary nearest the policy anniversary nearest the policy anniversary nearest the insured s 70th birthday, whichever insured s 70th birthday, whichever insured s 70th birthday, whichever Limited = currently allows is soonest. is soonest. is soonest. conversion only to Virtus Basic. Renewal To age 100 To age 100 To age 100 Policy Fee $1,000,000+ $85 $85 $85 $500,000 - $999,999 $75 $75 $75 $100,000 - $499,999 $65 $65 $65 Optional Riders* Accidental Death Benefit, Family Term, Accidental Death Benefit, Family Term, Accidental Death Benefit, Family Term, Guaranteed Purchase Option, Guaranteed Purchase Option, Guaranteed Purchase Option, Lifetime Advantage Rider, Lifetime Advantage Rider, Lifetime Advantage Rider, Waiver of Premium for Total Disability Waiver of Premium for Total Disability Waiver of Premium for Total Disability Limited Convertibility Term 10 Term 15 Term 20 $1 Million Face, Best NS Class Annual Premiums Annual Premiums Annual Premiums Age 35, Male $235 $305 $435 Age 45, Male $545 $835 $1,125 Age 55, Male $1,495 $2,045 $2,795 Expanded Convertibility Term 10 Plus Term 15 Plus Term 20 Plus $1 Million Face, Best NS Class Annual Premiums Annual Premiums Annual Premiums Age 35, Male $245 $315 $455 Age 45, Male $585 $865 $1,145 Age 55, Male $1,555 $2,085 $2,865 * Family Term and GPO only available on Plus products. 7

10 Term Specifications (continued) Recap Term YRT Plus II example Protection sales Product Strength Cumulative conversion credit Low, fully guaranteed annually increasing premiums Sales Support and Literature For Career/PPGA Marketing, call , option 3. Minimum Issue $100,000 $100,000, maximum issue $1 million Issue Ages Bands $100,000 N/A (Higher bands with reduced rates) $500,000 $1,000,000 Underwriting Classes Super Preferred NS Standard Unisex Preferred NS Select NS Standard NS Select Smoker Standard Smoker Premium Guarantee Period 10-Year 10-Year Conversion Options Expanded = Plus products Expanded conversion. Expanded conversion. allow conversion to all available Cumulative conversion credit years Conversion credit for permanent life insurance offered 1-5. Annual premium conversion first 3 years, but not past by the company. credit years age 70. Not convertible after 3rd year. Actual underwriting class and gender used upon conversion. Renewal To age years Policy Fee $1,000,000+ $85 $150 $500,000 - $999,999 $75 $150 $100,000 - $499,999 $65 $150 Optional Riders Accidental Death Benefit, Family Term, Waiver of Premium for Total Disability Guaranteed Purchase Option, Lifetime Advantage Rider, Waiver of Premium for Total Disability Expanded Convertibility Recap Term YRT Plus II $1 Million Face, Best NS Class Annual Premiums Annual Premiums Age 35, Male $265 $470 (Standard Unisex) Age 45, Male $675 $850 (Standard Unisex) Age 55, Male $1,755 $1,780 (Standard Unisex) 8

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12 The Ohio National Life Insurance Company Ohio National Life Assurance Corporation One Financial Way Cincinnati, Ohio Post Office Box 237 Cincinnati, Ohio Telephone: Term life insurance is issued by Ohio National Life Assurance Corporation. Term products convertible to the end of the level term period or to the policy anniversary date nearest the insured s 70th birthday, whichever occurs first. Conversion options vary by term product. Product, product features and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer is not licensed to conduct business and products are not available in AK, HI and NY. Form 2911 Rev Ohio National Financial Services, Inc. for representative use ONLY. NOT FOR USE WITH the General PUBLIC.