Income and Wealth Transfer

Transcription

1 ONE CARRIER TWO KEY STRATEGIES Income and Wealth Transfer Presented by J ason Goodrich IC14-WX-1089 For Producer Use Only.

2 Our products give your clients money to LIVE ON AND LEAVE ON! For Producer Use Only.

3 E QUITR US T LIFE INS UR ANCE COMPANY We Strive to Keep Things Simple Client-Friendly, Easy-to-Explain Products Return of Premium Guarantee Available in most states with two products Fully Vested Bonuses Immediately part of Accumulation Value One Index: S&P 500 Upside potential with downside protection Only One Moving Part Cap or participation rate reset annually One Income Rider One competitive rider eliminates confusion Competitive, Up-Front Commissions Entire commission* paid at the time of issue No Spreads, Margins or Asset Fees Either a cap or participation rate *Up to $25,000 in individual-case commissions are paid at contract issue, with any remaining balance paid after the free-look period. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. S&P 500 is a trademark of the McGraw-Hill companies, Inc. and has been licensed for use by EquiTrust Life Insurance Company. Products are not sponsored, endorsed, sold or promoted by Standard & Poor s and Standard & Poor s makes no representation about the advisability of purchasing any products. For Producer Use Only.

4 LIVE ON! Guaranteed Income, For Life! Income Planning The highly competitive Income For Life rider is available on all EquiTrust index annuties! Guarantees Lifetime Income Based on 6.50% Accumulation For Up to 10 Years Annual Fee 0.75% of Accumulation Value No Age Restriction to Add Rider Available for Inherited IRAs 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). For Producer Use Only.

5 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 14-Year Contract 8.5% MGA Commission Contract issued on Form Series ET-MPP-2000(02-05) with Rider ET-AVBR(06-09). For Producer Use Only.

6 ILLUSTRATION Bonuses Are Included in the Benefit Base Year-End Benefit Base Growth Percentage Growth Illustration: Benefit Base Growth for MarketTwelve Bonus 3 Yrs, 1 Day After 10 Years $211,156 After 5 Years 2% Accum Bonus $2,664 $154,118 $135, % 54.1% 35.9% 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. 2 Yrs, 1 Day 1 Yr, 1 Day At Issue 6.5% 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 $133,213 $125,083 $122,631 $115,147 $112,890 $106, % 15.1% Initial Premium $100,000 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 For Producer Use Only.

7 SINGLE PREMIUM FIXED INDEXED ANNUITY MarketPower Bonus Index MarketPower Bonus Index Product Features: 10% Up-Front Premium Bonus 14-Year Contract Competitive Caps/Rates 8.5% MGA Commission Contract issued on Form Series ET-MPP-2000(02-05). For Producer Use Only.

8 FLEXIBLE PREMIUM FIXED INDEXED ANNUITY MarketTen Bonus Index MarketTen Bonus Index Product Features: 6% Premium Bonus (years 1-5) 10-Year Contract ROP Rider (no charge) 6% MGA Commission Contract issued on Form Series ET-MTB-2000(06-07). For Producer Use Only.

9 LEAVE ON! Achieve Wealth-Transfer Goals! Three Wealth Transfer products to increase the value of your clients estate! Provide an income-tax free legacy to heirs Index-linked or interest-sensitive returns Accelerated death benefits for certain health conditions ROP Guarantee and premium bonus options Simplified underwriting; decisions within 48 hrs of interview 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. For Producer Use Only.

10 Exciting Wealth Transfer Life Products from EquiTrust Life WealthMax Bonus Life WealthSure Life TM WealthPay Life TM IC14-WX-1091 For Producer Use Only.

11 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. For Producer Use Only.

12 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. For Producer Use Only.

13 EQUITRUST LIFE PRODUCTS Sources of Funds CDs Checking/Savings Accounts & Money Market Annuities Life Insurance Policies Qualified Accounts For Producer Use Only.

14 EQUITRUST LIFE PRODUCTS WealthMax Bonus Life WealthMax Bonus Life Features: Single Premium Index Life (Competitive Caps/Rates) Simplified-Issue Standard to Table 4 Accept/Reject Guaranteed Death Benefit to Age % Premium Bonus added to Accumulation Value immediately Liquidity Options Return of Premium Penalty-Free Withdrawals/Loans Accelerated Death Benefit Rider Earn up to 9% Commission 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. For Producer Use Only.

15 WEALTHMAX BONUS LIFE What Does WealthMax Bonus Life Offer Your Clients? Return of Premium Living Benefits Guaranteed Death Benefit For Producer Use Only.

16 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 For Producer Use Only.

17 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 $145,781 $129,377 $103,500 $103,500 $103,500 $79,020 $62,381 $67,494 $50,000 $50,000 $57,884 Immediate Value At 10 Years At 20 Years 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 5.5% illustrated rate. The values shown are non-guaranteed and may not be presented to a client without a compliant illustration. 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. For Producer Use Only.

18 WEALTHMAX BONUS LIFE Death Benefit Comparison Five Years Later 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. For Producer Use Only.

19 WEALTHMAX BONUS LIFE What if Betty Changes Her Mind? Fortunately there s a Return of Premium Guarantee! For Producer Use Only.

20 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 For Producer Use Only.

21 What about your clients with Qualified money earmarked for Wealth-Transfer? For Producer Use Only.

22 EQUITRUST LIFE PRODUCTS WealthPay Life WealthPay Life Standard Features: One Application Simplified Issue Standard up to Table 4 Annual SPIA payments pay the life premiums over 3, 5 or 10 years Taxable portion of SPIA premium is spread over each SPIA payment instead of all up-front Immediate income tax-free death benefit Commuted value of SPIA in the event of death during premium payment period Liquidity Options Penalty-Free Withdrawals/Loans* Accelerated Death Benefit Rider Earn Up to 11% Commission *Withdrawals, outstanding loans or ADBR payments will reduce the death benefit and may result in policy lapse. Withdrawals during the premium-payment period will impact any future premium payments from the SPIA. ADBR may vary by state or may not be available in certain states. Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional advisors in these areas. The policy must be in force at the time of death to pay a death benefit. Life insurance death benefits will be lower if SPIA payments are reduced by an amount for tax withholding purposes. Accelerated Death Benefits are payable in the event of either terminal illness or chronic illness, but not both and are limited during the premium payment period. Accelerated Death Benefits may be income-tax free. This policy may be a Modified Endowment Contract (MEC) as defined by IRS section 7702A. Distributions including policy loans from a MEC may be treated as taxable income. Policy issued on Contract Form Series ICC13-ETL-IWL-2000(01-13) with rider ICC14-ETL-ADBR(08-14). SPIA issued on Contract Form Series ICC13-ET-SPIA-2000(01-13). For Producer Use Only.

23 WEALTHPAY LIFE Hypothetical Example: Sharon $50, K No tax liability on lump sum Transferred to annuity SPIA $10,460 $10,460 $10,460 $10,460 $10, for each payment Annual Premium Payments $81,813 Death Benefit Example assumes female, 65, non-smoker, 5 pay. 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. For Producer Use Only.

24 EQUITRUST LIFE INSURANCE COMPANY Company Strength Company Statistics EquiTrust Life is committed to meeting the financial goals of our customers. The guarantees associated with our products are backed by our financial strength and ability to pay our claims. EquiTrust is supported by a history of success, experience and strength, with portfolio management provided by Guggenheim Partners a global financial services firm with more than $220 billion under management. Total Assets $14.5 Billion Portfolio Investment Grade 95% Risk-Based Capital Ratio 402% Solvency Ratio $ Assets and financials as of 12/31/14, on a statutory basis. Data as of December 31, 2014, on a statutory basis. For Producer Use Only.

25 For Producer Use Only. Thank You!