Your guide to Term Insurance

Transcription

1 Protection Solutions Your guide to Term Insurance with Standard Life Making Retirement Better Grow. Protect. Live. Transfer.

2 Hello.

3 More and more people are looking for financial security that will get them through the most important events of their lives. Whether it s a client who needs protection for themselves or a family member, or someone who owns a business, a complete coverage should be available and it should be at an affordable price. Joint coverage for complete protection Easy plan conversion See page 5 See page 6 Critical Illness Insurance Children s protection See page 7 See page 8 Preferred Rates Program See page 10 In case of discrepancy between this document and the policy, the policy prevails. Standard Life 3

4 Standard Life s non-participating Term 10 Renewable and Convertible and Term 20 Renewable and Convertible policies provide clients with level insurance coverage until Insurance Age 85, with premiums changing every 10 or 20 years, depending on which plan is chosen. The premium rate at each renewal is guaranteed at issue. Both Term 10 and Term 20 coverages can be policies in themselves or riders attached to other term insurance or Perspecta universal life policies. Protecta Critical Illness riders can also be attached to Term 10 and Term 20 policies. Clients may also choose to convert the coverage to a permanent Standard Life insurance plan, without proof of insurability, at any time prior to Insurance Age 65. Thanks to our Life Profiles Preferred Rates Program, our Term 10 and Term 20 products are offered at preferred rates. How Term insurance can help your clients Individuals and Families Insure a loan (student loans, loans on car payments, etc.) Mortgage protection our Joint First To Die coverage is ideal for clients who want to include their spouse in their mortgage protection Provide for children s education Preserve their estate Cover costs related to final wishes Businesses Insure a loan for their business Fund buy-sell agreements Offset losses resulting from the death of a key employee 4 Standard Life

5 Choose the protection that best fits your clients needs To ensure that your clients have complete protection, they and their spouses could opt for Joint First To Die Term insurance policies as base coverages with Protecta 65 Joint Coverage Critical Illness insurance riders. The addition of Protecta riders allows your clients to save on policy fees while enjoying the benefits of joint coverage. Take a look at the example below. Joint mortgage protection First home buyers Joint First To Die Term 20 with a Protecta 65 Joint Coverage Critical Illness insurance rider Male aged 28 years old Term 20 years Term 20 years Protecta Female aged 26 years old Term 20 years Term 20 years Protecta Your clients will benefit from complete coverage until age 65 of the older of the Insureds along with the peace of mind of knowing their premiums are guaranteed. They will have the choice to keep their Term insurance coverage or to convert it to a permanent insurance plan. Standard Life 5

6 Term insurance product overview Issue Ages Term 10 Insurance: Ages (nearest birthday) Term 20 Insurance: Ages (nearest birthday) Joint First To Die Coverage Coverage for two lives and ends upon first death Can be a base policy or a rider to a Term 10 or Term 20 insurance policy Insurance Age is that of the older of the Insureds, unless otherwise indicated Plan Minimum The minimum Sum Insured is $100,000 Plan Maximum There is no maximum on the amount of insurance. However, for Sums Insured in excess of $5 million, please contact custom.quotes@standardlife.ca Rate Banding $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1 million coverage and above Your clients can make premium payments Monthly Quarterly Semi-annually Annually Renewing Policies The coverage automatically renews at each 10 th or each 20 th policy anniversary depending on the chosen coverage occurring before Insurance Age 85. If the coverage is renewed after age 75, it will cease at the policy anniversary immediately preceding the Insured s 85th birthday. The rates for renewal are determined at issue and are guaranteed. Coverage will cease on the policy anniversary closest to the Insured s Insurance Age 85. Converting Policies The coverage under a Term 10 or Term 20 insurance policy may be converted, upon request, to any permanent insurance plan then offered by Standard Life. The latest date at which the policy can be converted is the Insured s Insurance Age 65. Policy Fee The annual policy fee is $65. No matter what stage of life they re in, your clients can have complete coverage at an affordable price. 6 Standard Life

7 Benefits and Riders Term 10 R&C or Term 20 R&C insurance rider 10 year or 20 year terms Automatic renewal Coverage to age 85 Change in premium every 10 years or 20 years, depending on the chosen coverage (premium guaranteed at issue) Convertible to any permanent life insurance plan before age 65 Protecta Critical Illness insurance riders Return of Premium on Death option available with any Protecta coverage Protecta 10 Critical Illness insurance rider (4 illnesses or Enhanced: 24 illnesses) 10 year term Automatic renewal Coverage to age 75 Convertible to any level premium critical illness insurance product then offered until age 64 Protecta 65 Critical Illness insurance rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 65 Protecta 65 joint coverage Critical Illness insurance rider (4 illnesses or Enhanced: 24 illnesses) Offered on two lives Coverage to age 65 of the older of the insureds Coverage for both insureds terminates as soon as a claim is made, excluding a claim for a partial benefit for each insured Protecta 75 Critical Illness insurance rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 75 Standard Life 7

8 Protecta 100 Critical Illness insurance rider (4 illnesses or Enhanced: 24 illnesses) Guaranteed level premiums Coverage to age 100 Payment of the sum insured if the insured is still alive and no claim has been made, excluding a claim for a partial benefit Protecta Child Critical Illness insurance rider (13 illnesses) Level premiums to age 75 Coverage for children s illnesses to age 18 At age 18, if no claim has been made, the covered illnesses are replaced by those under the Protecta 75 Enhanced version for adults Children s protection rider Sum insured between $2,000 and $20,000, level insurance Covers only one child Age at issue: 15 days to 17 years Coverage to age 25 or wedding date, whichever is first Convertible to any available life insurance coverage 31 days before expiry date Children s enhanced protection rider Sum insured between $2,000 and $20,000, level insurance Covers only one child Age at issue: 15 days to 17 years Coverage to age 25 or wedding date, whichever is first Convertible to any available life insurance coverage 31 days before expiry date for amounts of 5 times the initial Sum Insured, including a Guaranteed Insurability Benefit with new coverage 8 Standard Life

9 Guaranteed Insurability Benefit (GIB) Available at the time of issue for insureds aged 40 or less Choice of Sum Insured between $10,000 and the lesser of $100,000 and twice the Sum Insured of the policy to which the GIB is attached Benefit may be exercised on any of the occasions specified in the policy Accidental Death Benefit Additional amount of insurance paid to the beneficiary if the insured dies as a result of an accident Minimum coverage of $10,000 Maximum coverage for insureds 15 days to 25 years of age is the lesser of $100,000 and the Sum Insured under the Term insurance policy Maximum coverage for insureds between age 25 and 65 is the lesser of $300,000 and the Sum Insured under the Term insurance policy Expiry at age 70 Waiver of premium on disability Waiver of premium during the disability of the policyholder or of the insured before age 60, up to the date of recovery or death of the policyholder or the insured Survivor s Insurance Benefit 65 or 70 Survivor of Joint First to Die coverage has the option of purchasing any insurance plan with an identical expiry date as the original policy within 31 days of the death of the insured, without evidence of insurability Sum Insured under the new policy must be the same as the original coverage Guarantee expires at age 65 or 70 of the younger of the insureds, depending on the benefit selected Standard Life 9

10 Life Profiles Preferred Rates Program Life Profiles is our method of underwriting for Term products which matches clients cost of insurance to their all-around lifestyle and medical history. We offer 5 rate classes which allow for a more accurate profile of each individual client. The criteria on which the categories are based fall under 5 basic headings: tobacco use, weight/height, family medical history, personal medical history and personal lifestyle. Profiles In short healthier clients will benefi t from lower premiums! Profile 1 People with very healthy lifestyles and an excellent personal and family medical history. Profile 2 People with healthy lifestyles who have a very good personal and family medical history. Profile 3 People with healthy lifestyles who have not smoked in the last 12 months. Profile 4 People with healthy lifestyles who do not smoke cigarettes or use nicotine products (e.g., nicotine patch or gum) but who use any of the following: cigars, pipes or chewing tobacco. (Same as Profile 2 apart from tobacco use.) Profile 5 People with healthy lifestyles who smoke cigarettes or use nicotine products. (People who do not qualify for Profile 4.) For more details on our Life Profiles Preferred Rates Program and the underwriting process for Term Insurance, please refer to the Underwriting Guide (#5664) or the brochure entitled This is all about a Preferred Rates Program with Standard Life (#3519) available on Advisor Source at 10 Standard Life

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