Life Insurance. Page 1 of 13

Transcription

1 Life Insurance Page 1 of 13

2 GCU offers a variety of life insurance programs: 1. Whole Life a. Single Premium Whole Life b. 20 Year Payment Life c. Ordinary Whole Life 2. Term a. Term to Age 30 b. Annual Renewable Term c. 10 Year Renewable and Convertible Term d. 20 Year Level Term e. 30 Year Level Term GCU Life Insurance At A Glance Plan Issue Ages Minimum Face Amount Issued Ordinary Whole Life 0-85 $5, Pay Whole Life 0-85 $5,000 Single Premium Whole Life 0-85 $5,000 Term to Age Issued only at $10,000, $25,000, or $50,000 Annual Renewable Term 18-85* $50, Year R&C Term $10, Year Level Term (1) : $100, : $50, : $25, Year Level Term (1) : $100, : $50, : $25,000 *Renewable to age 95 All Ages are based on "age closest birthday". (For example, a client who is 85 yrs and 7 months old is 86 for rating purposes) (1) 20 and 30 Year Term Contracts are convertible only up to age 75 or the end of the contract term, whichever comes first. The maximum deposit premium on an SPWL (age 18 and over) is $150,000. For ages 17 and under, the maximum face value is $50,000 A Blood Work Authorization Form is required on any contract (Insured age 18 +) regardless of the face amount. While the actual blood work may NOT be ordered, it s in the agent s best interest to have it signed in case the Underwriter decides a blood work profile is necessary. Non Medical Limits (This is a guideline. Can still be ordered at the discretion of the underwriter) Ages 0 to 45 = $200,000 Ages 46 to 60 = $100,000 Ages 61 to 65 = $50,000 Ages 66 to 85 = $25,000 Page 2 of 13

3 Single Premium Whole Life This can be a great contract to be written on younger children. Parents, grandparents, aunts and uncles have used our SPWL to bring their son or daughter, grandson or granddaughter, niece or nephew into the GCU as a new member. Having an SPWL policy for at least 5 years would be one of the requirements for that young person to participate in our GCU National Scholarship Program as well as our GCU Academic Performance Scholarship Program. (See Fraternal Guide for details.) It is a great way to start a young person s financial planning for their young adult/adult life. The SPWL contract can also be used with older clients who are looking to do Wealth Transfer planning. The KEY issue is this, however: The SPWL contract should NEVER be sold as a short term investment. As a modified endowment contract, there are tax issues involved that the client must understand. Simply put, the GCU SPWL should ALWAYS be sold as a LIFE INSURANCE CONTRACT. Should we become aware that an agent is not properly selling the SPWL as a life insurance program, we will terminate their appointment with us. Effective 1/1/13, the MAXIMUM premium deposit on a GCU SPWL is $150,000 per insured, per calendar year. Page 3 of 13

4 GCU Life Insurance Illustration Software You can produce illustrations on GCU Life Insurance contracts by downloading our illustration software. At this time, our system does NOT do illustrations for life cases that are substandard/rated. Also, at this time, the illustration software is not MAC (Apple) compatible. A signed illustration should be sent in with each application submitted. Go to Click on Download Page 4 of 13

5 At the next screen, you ll type in your name, address, and the password is: gcu. The password is all lower case. Page 5 of 13

6 Once that information is entered, press Continue. You should come to the following screen. Click on the folder, and choose Save.. You will go through a series of windows to process the download. Be sure that the block marked Create a desktop icon is checked. Once the download is finished, you can begin the illustration process, by clicking Begin Page 6 of 13

7 You should arrive at the following screen. The first step is to click on the Agent tab at the top. Page 7 of 13

8 Fill in your personal information, and click on Save/Close. This information will then appear on the cover page for each illustration you print. From there, you can enter your individual case information and view all of the illustration pages by clicking on Display. When you go from one case to another, we recommend that you click New, and then again, click Proceed with new case to clear out all old information. When done, you can close out of the program. If you downloaded the software properly and requested a desktop icon, you should have the following icon on your desktop: If you have any problems or questions on running illustrations, please contact us. Page 8 of 13

9 GCU Life Insurance Application Form AL-0494 Section 1 1. Complete all information. 2. You must provide a Social Security Number, even if the insured in a newborn. 3. Amount of life insurance in force: show total face amount of all existing policies on the insured. 4. Is the Proposed Insured a Member of GCU? If they are not currently a member, just check no. There is no separate application for membership. The life insurance application will serve as their application for membership. Section 2 1. Plan a. Ordinary Whole Life, 20 Pay, or SPWL b. Term to 30, ART, 10 Yr R&C, 20 or 30 Year Level Term 2. Face amount: initial death benefit. 3. Riders a. None, or; b. Accidental Death, or; c. Waiver of Premium, or; d. AD and WP 4. Requested effective date a. Unless there s a specific effective date needed, simply write in A.S.A.P. b. Contracts may not be backdated to save age. c. Contracts may not be effective prior to underwriting approval being given and at least the first modal premium having been received. 5. Dividend Option a. Cash b. Reduce Premium c. Accumulate at Interest d. Paid up Additions e. Please note: When doing an SPWL, any dividend option OTHER than Paid Up Additions will cause a taxable event to occur. Page 9 of 13

10 6. Premium Mode a. For SPWL: single payment b. All others: Annual, Semi-Annual, Quarterly, Monthly i. Keep in mind that all Monthly billed accounts must be set up under Direct Debit. 7. Amount Paid with Application: a. If it s an inquiry, you don t need to write in anything. b. We do NOT do C.O.D. Life contracts. 8. Replacement Questions a. If replacement is involved, the appropriate replacement forms must accompany the application Section 3 1. Beneficiary(s) a. Primary Beneficiaries: MUST have Legal Name, SSN, Relationship and share. Applications that do NOT have SSN s will NOT be able to be produced. b. If a Trust is named as a beneficiary, a copy of the Trust should accompany the application. Section 4 1. Contract Owner a. Proposed insured (must be 16 years old or older) b. Applicant c. Other 2. You could have a case where a grandparent is applying and paying for their grandchild s life policy. In that case, the grandparent could elect to be the contract s owner, or they could simply be the applicant and name the child s parent as the owner. 3. The owner must have an insurable interest in the insured. Sections 5, 6, 7, 8, and 9 1. It is ESSENTIAL that the agent asks each of these questions directly to the proposed insured/applicant. a. Tobacco use during the last 3 years includes ALL forms of tobacco: cigarettes, cigars, snuff, chewing tobacco, etc. Page 10 of 13

11 b. All Yes answers need to be fully detailed in Section 8. If you need additional space to fully answer any Yes response, please use a separate sheet of paper and include the section number and letter of the Yes you are responding to. i. Important information to collect would be: 1. Date first diagnosed. 2. Current status. 3. List of medications taken. 2. Inaccurate information on the application could be grounds for rejecting a claim. Section 10 In getting the name of the proposed insured s family doctor, please provide the doctor s full name, address, city, state, zip, and phone number whenever possible. Once all of this above information is accurately recorded on the application, the agent will indicate the location where the application was signed, along with the date, month and year. Appropriate signatures should then be obtained. Page 11 of 13

12 Authorization for Blood Testing and Disclosure of Results 1. This form should be completed for any proposed insured 18 or older, regardless of the amount of coverage requested. The underwriter may, at their discretion, request the blood work to be done based on information received in the underwriting process. Having the form signed at the time of application eliminates return calls to the client, and speeds up the underwriting process. If the blood work is NOT ordered, our underwriter will merely discard the form. 2. Be aware, however, that the GCU Underwriter may also request this form and the resulting test at any time based on the information recorded on the application, or obtained during the process of underwriting the proposed insured. 3. Once received, the GCU Underwriter will order the test to be done through one of our vendors, who will contact the proposed insured to arrange the appointment. 4. Agents should advise their client to be ready for the call from our vendor, and that the underwriting of the application will not proceed until GCU receives the results. Ages 0 to 45 = $200,000 Ages 46 to 60 = $100,000 Ages 61 to 65 = $50,000 Ages 66 to 85 = $25,000 Non-Medical Limits It is important to note that these are guidelines, and the final determination of whether or not a medical exam needs to be performed rests with the GCU Underwriter, based on the information obtained on the application or in the process of underwriting the proposed insured. Page 12 of 13

13 Death Claims 1. GCU does not have a separate claims form. 2. To report a death claim, please call our Home Office and indicate you are calling to report a death. 3. Our Claims team will see to it that the beneficiaries are identified, and all proper forms are sent to them. 4. Please do NOT mail in contracts or death certificates prior to speaking with our claims department. Page 13 of 13