Columbus Life Insurance Company Strength. Product. Relationships For financial professional use only Slide 1 Columbus Life Insurance Company, Cincinnati, Ohio CL 5.XXX (09/12) is licensed in the District of Columbia & all states except New York. Matt Canterbury NATIONAL ACCOUNT MANAGER COLUMBUS LIFE INSURANCE CO.
For financial professional use only Slide 2 CL 5.XXX (09/12)
Outstanding Financial Strength COLUMBUS LIFE INSURANCE COMPANY A member of Western & Southern Financial Group A+ AA AA Aa3 96of 100 SUPERIOR A.M. Best VERY STRONG Standard & Poor s VERY STRONG Fitch In Comparison. EXCELLENT Moody s Comdex Ranking 91of 100 Avg. of 25 Largest Companies 80of 100 Industry Average The ratings in this document are accurate as of July 16, 2013, and are subject to change. These ratings are determined by independent insurance-rating firms. For the latest rating information on Columbus Life, please call 1-800-677-9696 Option 4. Insurance company ratings refer to the financial strength of the insurance company. Comparison information from VitalSales Suite, accurate as of July 16, 2013. For financial professional use only Slide 3 CL 5.XXX (09/12) Last updated 07/13
PRODUCT PORTFOLIO simple practical competitive Universal life Lifetime Guarantee Cash Accumulation Indexed Variable Second to Die UL Second to Die VUL Term life 10, 15, 20, 30-year Life Plus ADBR Return of Premium Flexible Convertibility Fixed Annuities + Enhanced Riders Single Premium Immediate Single Premium Deferred For financial professional use only Slide 4 CL 5.XXX (09/12) Listed products and features may not be available in every state. Provisions of each product may also vary by state. Surrender charges may apply in the event of full or partial policy surrender.
The Top Product Features You Have to Know About at Columbus Life 3 Columbus Life Insurance Company, Cincinnati, Ohio is licensed in the District of Columbia & all states except New York.
Industry Challenges facing Guaranteed UL Products Regulatory Changes Actuarial Guideline 38 EXIT GUL Market Rate Changes For financial professional use only Slide 6 of 32 CL 5.1872 (01/13)
Guaranteed Universal Life LIMRA Study 8 in 10 Universal Life Buyers Very Important that their Premiums did NOT Change 70% Universal Life Buyers Wanted Premium and Death Benefit Guarantees Universal Life Buyers WANT Premium & Death Benefit Guarantees Source: LIMRA International, Finding New Customers, 2005 For financial professional use only Slide 7 CL 5.XXX (09/12)
Voyager UNIVERSAL LIFE NLG flexible affordable premium UL Focus on affordable death benefit Adjustable No-Lapse Guarantees LIFETIME Pay only to 100! For financial professional use only Slide 8 of 32 CL 5.1872 (01/13)
Looking for rock-solid consistency, affordable premiums and lifetime guarantees? CL 5.1828-02 (05/13)
Consistent Pricing Columbus Life Legacy G SUL Core Competitors No-Lapse Guarantee UL Products $1,000,000 Face Male, 70 / Female, 70, Standard Class Solve for Lifetime No Lapse Guarantee Paid to Age 100 Carrier Annual NLG Premium Change 2009-2013 1/1/2009 4/27/2013 Columbus Life $18,951 $18,951 +0.0% 0.0% Change in 4+ Years Lincoln Benefit $19,516 $24,653 +26.3% Protective Life $18,382 $26,087 +41.9% John Hancock $21,685 $33,481 +54.4% MetLife $20,178 Not offered Not offered Competitor information is obtained from sources believed to be reliable, but its accuracy is not guaranteed. This data is for informational purposes and is not intended as a solicitation or recommendation of any insurance product. Information is current as of 4/27/2013.
Sales Ideas Legacy G UL Family Estate Planning David (61) & Trudy (64) both Standard Family business with high net worth, need for estate planning Trustee wants guarantees & assurance from CL Result $1.6M single prem for $7.7M DB or $800k single prem for $3.8M DB For financial professional use only Slide 11 of 32 CL 5.1872 (01/13)
Sales Ideas Legacy G UL Family Estate Planning Several conference calls with CL product, underwriting, & marketing Premium limits now in place of $1M per life per year For financial professional use only Slide 12 of 32 CL 5.1872 (01/13)
The Capital Transfer Solution Explorer Plus + Capital Transfer Riders Cash Accumulation UL 3 Enhanced No Lapse Guarantee Riders Guarantees + Flexibility CL 85 0707 Explorer Plus Flexible Premium Universal Life Insurance Policy CLR-196 1107 Enhanced No-Lapse Guarantee Rider (Accumulation) CLR-197 1107 Enhanced No-Lapse Guarantee Rider (Return of Premium) CLR-198 1107 Enhanced No-Lapse Guarantee Rider (Death Benefit) For financial professional use only Slide 13 of 33 CT Overview 1111
Sales Ideas Capital Transfer The Power of Liquidity Special Rider Language If you withdraw part of the account value from the policy while this rider is in effect, the total specified amount will be decreased to an amount necessary to keep the Enhanced No Lapse Guarantee in effect. For financial professional use only Slide 14 of 32 CL 5.1872 (01/13)
The Power of Liquidity EXAMPLE: Female, 65, STNU, $100K Single Premium, Explorer Plus, Cap Transfer AV Rider Year Guaranteed Death Benefit Current Surrender Value 1 $269,541 $82,849 5 $269,541 $90,256 10 $269,541 $94,808 Withdrawal 14 $269,541 $101,270 $100,000 Remaining DB $142,164 The Liquidity feature allows clients to withdraw a portion of the cash value in the policy without losing the death benefit guarantee. The death benefit will be reduced proportionately to the withdrawal. For financial professional use only Slide 15 of 33 CT Overview 1111 Illustration current as of 11/1/11.
Columbus Life Crediting Rates Rates as of January of each year Year Explorer Plus UL Crediting Rate Year Explorer II UL Crediting Rate 2013 5.10% 2012 5.30% 2011 5.50% 2010 5.70% 2007 5.10% 2006 5.10% 2005 5.10% 2004 5.75% 2009 5.80% 2008 5.80% For financial professional use only Slide 16 of 33 CT Overview 1111
The Power of Living Benefits our LifePlus Accelerated Death Benefit Rider The LifePlus Accelerated Death Benefit Rider CLR-179 rider series is available on all UL products and the CLR-201 rider series is available on Nautical Term. Your financial professional can provide additional information on the Life Plus Rider. This rider and its benefits may not be available in all states and benefits may vary by state. Sources cited were most recent available. Columbus Life Insurance Company is licensed in the District of Columbia and all states except New York. Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value. Payment of the benefits of Columbus Life Insurance Company products is backed by the full financial strength of Columbus Life Insurance Company, Cincinnati, Ohio. 2013 Columbus Life Insurance Company 400 East Fourth Street Cincinnati, OH 45202
Disabling Illness The Financial Impact People think DISABILITY won t happen to them. Disability Divide; The Council for Disability Awareness, March 2012 But the reality is: IT COULD Social Security Fact Sheet: June 2012 Commissioner s Disability Tables A&C
Disabling Illness Americans are UNPREPARED Social Security Fact Sheet June 2012 CDA 2009 Worker Disability Planning and Preparedness Study Consumer Federation of America, 2007 2010 Gen Re Disability Fact Book
Nautical Term with Life Plus Death Benefit Protection Accelerated Death Benefit Rider Terminal Illness Chronic Illness Specified Medical Condition The Life Plus Accelerated Death Benefit Rider Series CLR-201 1208 is available on Policy Series CL 83 0405, CL 83 0405 ID, CL 83-U 0405 and CL 83-U 0405 ID. Contact your financial professional for details on how Nautical Term and the Life Plus rider s availability, provisions and benefits may vary in your state. The accelerated death benefit under this rider will be made available to you on a voluntary basis only. It is possible that all or part of an advance may be considered taxable by the Internal Revenue Service. You should consult your attorney, accountant or other tax advisor before requesting an advance under this rider. Columbus Life Insurance Company is licensed in the District of Columbia and all states except New York. Payment of the benefits of Columbus Life Insurance Company products is backed by the full financial strength of Columbus Life Insurance Company, Cincinnati, Ohio.
SIMPLE Benefits Calculation Columbus Life uses a simple formula method to calculate the benefits available for acceleration. Easier for clients to understand versus being subject to an underwriting review or a discounted death benefit
Savings Dilemma Retirement or College
Columbus Life s Life Insurance - Case Study Jim Male, age 35, Ohio Preferred, Non Tobacco Goal: Wants to set aside some funds for his two children ages 3 and 1. Jim wants to contribute an additional $10,000 per year in savings for education and retirement. Initial specified amount of $310,000 and pays a premium of $10,000 per year Indexed Explorer CASH ACCUMULATION UL Plus For all approved states and the District of Columbia: Indexed Explorer Plus Flexible Premium Universal Life Policy (Indexed Explorer Plus Flexible Premium Adjustable Life Policy in PA and VA; Equity Indexed Explorer Plus Flexible Premium Universal Life Policy in NJ) and some riders may not be available in all states. Benefits vary by state. Check the approved state variation. Policy series CL 88 0707 and CL 88 0707 ID, and riders, CLR-135 0101, CLR-136 0608, CLR-137 0101, CLR-138 0101, CLR-143 0101, CLR-160 0308, CLR-173 0707, CLR-174 0707, CLR-176 0707, CLR-177 0707, CLR-178 0707, CLR-179 0707 and CLR-199 1107. For AK and IN: Rider CLR-136 0101 substituted for CLR-136 0608. For financial professional use only Slide 24 of 32 CL 5.1872 (01/13)
Columbus Life s Life Insurance - Case Study At Jim s age 50 Stops paying the premium Takes withdrawals and loans for 6 years Age 50 Cash Surrender Value Total of Premiums Paid Illustrated Income Stream* Total of Illustrated Income Stream $243,866 $150,000 $10,000 $60,000 Total available to pay for College costs $20,000 per year *Income uses withdrawals. All values non-guaranteed. Assumes client lives in Ohio. Allocations are to 100% S&P 500 Uncapped Indexed option with the 0% floor elected. Decrease specified amount by $110,000 at age 50, Death Benefit Option Change from 2 to 1 at age 52. Illustrated as of 11/19/2012. Actual values will vary from illustrated case. For financial professional use only Slide 25 of 32 CL 5.1872 (01/13)
Columbus Life s Life Insurance - Case Study At Jim s age 67 Stops paying the premium Takes withdrawals and loans for 25 years Age 67 Cash Surrender Value Total of Premiums Paid Illustrated Income Stream* Total of Illustrated Income Stream $842,039 $260,000 $30,000 $750,000 Income available for 25 years $30,000 per year *Income uses withdrawals switching to loans at cost basis. All values non-guaranteed. Assumes client lives in Ohio. Allocations are to 100% S&P 500 Uncapped Indexed option with the 0% floor elected. Illustrated as of 11/19/2012. Actual values will vary from illustrated case. For financial professional use only Slide 26 of 32 CL 5.1872 (01/13)
Columbus Life s Life Insurance - Death Benefit Instant funding for Education Needs Retirement Needs Jim If passed away after 4 years there would be a death benefit of Death Benefit end of year 4 $350,376 Indexed Explorer Plus UL, Male age 35, Preferred-TNU, $310,000 specified amount, death benefit option 2, $10,000 Annual premium. 100% S&P 500 Uncapped indexed Option with the 0% floor elected. For financial professional use only Slide 27 of 32 CL 5.1872 (01/13)
Indexed Explorer Plus UNIVERSAL LIFE Withdrawals Withdrawals may be requested after the first policy year. Potential for Zero Cost Fixed Loans Loan Crediting Loan Interest Policy Duration Current Guaranteed Current Guaranteed Years 1-10 2.00% 2.00% 2.50% 2.50% Years 11+ 2.00% 2.00% 2.00% 2.50% For FL, MO & TX add 2% to each of these rates.
Current Rates: September 2013 For new premium segment dates 8/16/2013 to 9/15/2013 1% Floor Capped Indexed Account (Annual Point-to-Point) Participation Rate Cap 100% 12.5% 0% Floor Capped Indexed Account (Annual Point-to-Point) Participation Rate Cap 100% 14% Uncapped Indexed Account (Point to Monthly Average) Participation Rate Cap 120% None Uncapped Indexed Account (Point to Monthly Average) Participation Rate Cap 130% None Max Illustrated Rate: 7.6% Max Illustrated Rate: 8.0% Cash values in the Indexed Explorer Plus UL do not participate directly in the stock market. Credited interest in indexed options is based, in part, on the performance of the S&P 500 Index, subjects to limitations. 0% Floor not available in all states.
Marketing Technology Where we ve come from
Marketing Technology Andrew Cromer Sales Desk Manager COLUMBUS LIFE INSURANCE CO. Columbus Life Insurance Company, Cincinnati, Ohio is licensed in the District of Columbia & all states except New York.
In Good Order Business placed more rapidly with igo e-app than paper applications Direct access from the Columbus Life Extranet
Why use igo e-app? For financial professional use only Slide 33 CL 5.XXX (09/12) In Good Order Always using the right forms 12 Business days faster underwriting time Paid/Submitted ratio improved by 9%
Direct access from Allegis website For financial professional use only Slide 34 CL 5.XXX (09/12)
Tablet & mobile device access Certain browsers, tablets, mobile devices may not be as compatible as others. For financial professional use only Slide 35 CL 5.XXX (09/12)
vs. PCs Mobile Device Growth 56% of American Adults own a Smartphone 34% of American Adults now own a tablet computer and 56% of those in higher income households Source: Pew Research Center', Tablet Ownership 2013 Source: Pew Research Center s Internet & American Life Project 6/5/2013
vs. PCs Mobile Device Growth Year-over-year growth of global PC shipments Source: Statista, PC Growth Choked by the ipad s Arrival
Tax Guide Over 1,800 Downloads Since March Launch
Available in
CLIC Quote Our new CLIC Quote App allows producers to quickly quote Voyager UL and Nautical Term plans for their clients. Available in Security Key Columbus Life Sales Desk 1-800-677-9696, option 4
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