Senior Marketing Consultant, EquiTrust Life Insurance Company 15+ years experience in the life and annuity business with both marketing and new

Transcription

1 Senior Marketing Consultant, EquiTrust Life Insurance Company 15+ years experience in the life and annuity business with both marketing and new business Life licensed

2 Two Exciting Products from EquiTrust Life WealthMax Bonus Life & MarketTwelve Bonus LEAVE ON! Products that give your clients money to LIVE ON AND LEAVE ON! IC14-WX-1091

3 EQUITRUST LIFE PRODUCTS Help Fulfill Client Objectives with Single Premium Life Insurance An Effective Means for Wealth Transfer Turn $50,000 Into $103,500 Death Benefit Example assumes female age 60 non-smoker.

4 EQUITRUST LIFE PRODUCTS Help Fulfill Client Objectives with Single Premium Life Insurance Living Benefits for Certain Health Conditions Turn $50,000 Into $103,250* Living Benefits *When Death Benefit accelerated and taken as monthly payments. Example assumes female age 60 non-smoker.

5 EQUITRUST LIFE PRODUCTS Underwriting Process Simplified-Issue Standard to Table 4 Accept/Reject Pre-Qualification Chart Health Questions on Application Phone Interview: Point-of-Sale or Scheduled NO EXAMS OR FLUID DRAWS APS at Underwriter Discretion Underwriting Decisions Usually Within 48 Hours Real-Time Notification of Decisions

6 EQUITRUST LIFE PRODUCTS Point-of-Sale Flow Chart Agent completes all appropriate application paperwork with the proposed insured. Agent and client call out to conduct phone interview. The first few questions will be directed to the agent before handing the phone to the insured. Interview runs about 15 to 20 minutes. Agent faxes all required paperwork including application to EquiTrust. Application, MIB, and interview results are sent by us to our underwriter for review. EquiTrust Underwriter accepts or rejects based on review. Currently at 89% approval.

7 EQUITRUST LIFE PRODUCTS WealthMax Liquidity Options 5% Free Withdrawals One Per Year, $25 Fee Per Withdrawal Proportionate Reduction to Death Benefit Return of Premium Accelerated Death Benefit Rider for Living Benefits

8 EQUITRUST LIFE PRODUCTS Living Benefit Rider Automatically included in the Policy at no charge in states where it is approved. One-time administrative fee of $250 if benefit is elected.* Terminal Illness 95% of Death Benefit in Lump Sum Nursing Care Confinement 100% of Death Benefit over 3 Years or 85% of Death Benefit in Lump Sum Chronic Care 100% of Death Benefit over 5 Years or 75% of Death Benefit in Lump Sum *Rider provisions and availability may vary by state.

9 EQUITRUST LIFE PRODUCTS WealthMax Bonus Life WealthMax Bonus Life Standard Features: Issue Ages (No backdating to save age) Single Premium Min: $10,000/Max: $750,000 Guaranteed Death Benefit to Age Year Declining Surrender Charge Schedule Index and Fixed Accounts Available 12% Premium Bonus Added to Accumulation Value Immediately Return of Premium Guarantee Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Return of Premium is net of any prior partial withdrawals and any outstanding loan balance. Policy issued on Contract Form Series ICC11-ETL-IUL-2000(04-11). Policy and riders may not be available in all states and may vary by state.

10 EQUITRUST LIFE PRODUCTS WealthMax Bonus Life Rates Account Options Cap Rates* Illustrated Rates 1-Year Interest 1-Year Point-to-Point Cap Index 1-Year Monthly Cap Index 2-Year Average Cap Index 3.80% 8.50% Cap 3.25% Cap No Cap 3.80% 5.90% 6.40% 11.90% *Current rates, effective May 1, 2014.

11 WEALTHMAX BONUS LIFE Excellent Commissions Ages Ages Ages % 8.5% 6.5%

12 WEALTHMAX BONUS LIFE Client asks, remind me again what this product offers me? Return of Premium Living Benefits Guaranteed Death Benefit

13 WEALTHMAX BONUS LIFE WealthMax Bonus Life Scenario Non-Smoker Age 60 $50,000 in a CD earning 2% Betty Objective: Concerns: Options: Leave this money to her two grandchildren when she dies Potential for health-related expenses during her lifetime, such as medical costs or nursing home care Leave the money in a CD Transfer it to an annuity, at 3% Purchase a WealthMax Bonus Life policy

14 The policy must be in force at the time of death to pay a death benefit. The death benefit will be reduced by any outstanding loan balance at the time of death. The death benefit is also reduced by any payment of Accelerated Death Benefits or partial withdrawals. Neither the Company nor its agents give tax, accounting or legal advice; please consult your professional advisors in theses areas. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. WEALTHMAX BONUS LIFE Death Benefit Comparison CD 1 Annuity Death Benefit WealthMax Bonus Life Death Benefit Guaranteed 2 WealthMax Bonus Life Death Benefit Non- Guaranteed 2,3 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $50,000 $50,000 Immediate Value $103,50 0 $62,381 $57,884 $103,500 $103,500 At 10 Years $136,27 1 $79,020 $67,494 At 20 Years $161,088 1 Assuming a 28% tax bracket. Values assume CD value less all taxes paid in prior years. Actual CD death benefit will be current CD amount less income tax withheld in year of death. 2 Single Premium Life is an insurance product and is not FDIC insured. 3 Based on a 6% illustrated rate. The values shown are non-guaranteed and may not be presented to a client without a compliant illustration.

15 WEALTHMAX BONUS LIFE Death Benefit Comparison Assume Betty needs to access funds to help pay for a terminal illness, nursing care confinement or chronic illness. $98,075 income tax-free Terminal Illness $87,725 income tax-free lump sum or $2,868/mo for 3 Years Nursing Home Confinement $77,375 income tax-free lump sum or $1,720/mo for 5 Years Chronic Illness Before electing any benefits, clients should contact their tax advisor regarding taxability of living benefits. Neither the Company nor its agents give tax, accounting or legal advice; please consult your professional advisors in theses areas.

16 WEALTHMAX BONUS LIFE What if Betty Changes Her Mind? Fortunately there s a Return of Premium Guarantee!

17 LIVE ON! Guaranteed Income, For Life! The highly competitive Income For Life rider is available on all EquiTrust index annuties! Income Planning Guarantees Lifetime Income Based on 6.50% Accumulation For Up to 15 Years Annual Fee 0.75% calculated off Accumulation Value and taken from Accumulation Value only Benefit Base is a term that applies only under the Income For Life rider. The contract accumulation value grows as a separate value and has an annual 0.50% rider fee. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Neither the company nor its agents give tax, accounting or legal advice. Consult your professional advisors in these areas. Income rider issued on Form Series ET-IBR(06-08).

18 SINGLE PREMIUM FIXED INDEXED ANNUITY MarketTwelve Bonus Index MarketTwelve Bonus Index Product Features: 12% Bonus Over 3 Years 6% of Premiums Year 1 2% of Accumulation Value Beginning of Years 2, 3 and 4 8.5% MGA Commission Contract issued on Form Series ET-MPP-2000(02-05) with Rider ET-AVBR(06-09).

19 ILLUSTRATION Bonuses Are Included in the Benefit Base Year-End Benefit Base Growth Percentage Growth Illustration: Benefit Base Growth for MarketTwelve Bonus When the 12% Bonus is combined with the 6.5% Income For Life rollup rate, the Benefit Base grows at an attractive rate. The higher the Benefit Base, the greater the withdrawal amount. 3 Yrs, 1 Day 2 Yrs, 1 Day 1 Yr, 1 Day At Issue After 10 Years $211,156 After 5 Years 2% Accum Bonus $2, % Rollup Rate: $8,130 2% Accum Bonus $2, % Rollup Rate $7,484 2% Accum Bonus $2, % Rollup Rate: $6,890 6% Premium Bonus: $6,000 $154,118 $135,87 7 $133,21 3 $125,08 3 $122,63 1 $115,147 $112,890 $106, % 54.1% 35.9% 25.1% 15.1% Betty s IRA at Age 60 $100,000 Betty turns on her income rider at age 70 she locks in an annual payment of $11,614 or $968 monthly for the rest of her lifetime. Benefit Base is a term that applies only under the Income For Life rider. The contract accumulation value grows as a separate value and has an annual 0.75% rider fee. Surrender of the contract may be subject to Surrender Charge or Market Value Adjustment. Withdrawals before age 59 ½ may result in a 10% IRS penalty tax. Withdrawals do not participate in index growth. Contract issued on Form Series ET-MPP-2000(02-05) with Rider ET-AVBR

20 LEAVE ON! Achieve Wealth-Transfer Goals! WealthMax to increase the value of your clients estate! Provide an income-tax free legacy to heirs Accelerated death benefits for certain health conditions ROP Guarantee Medical Expenses Access to Cash Legacy Creation Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Neither the company nor its agents give tax, accounting or legal advice. Consult your professional advisors in these areas. Return of Premium is net of any prior partial withdrawals and any outstanding loan balance. Issuance of the policy may depend on answers to the health questions. Policies issued on Form Series ICC11-ETL-IUL-2000(04-11) and ICC11-ETL-ISWL-2000(01-10). Policies and riders may not be available in all states and may vary by state.

21 SALES TOOLS WealthMax Bonus Life Showbook Support your WealthMax Bonus Life sales with the EquiTrust WealthMax Showbooks featuring product information, financial comparisons and hypothetical examples. What s Inside: Product Positioning Information Life Product Information Hypothetical Examples Market Comparisons

22 Thank you!