bc life & health lifebenefits final expense whole life insurance october 2000
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BC LIFE & HEALTH
LifeBenefitsFINAL EXPENSE
WHOLE LIFE INSURANCE
October 2000
LifeBenefits
Why purchase final expense insurance?
According to the National Funeral Directors
Association, the average funeral costs $6,750
Social Security death benefit is $255 (if you
qualify)
FINAL EXPENSE WHOLE LIFE INSURANCE
Available for Ages 45 - 80 Rates based upon age at application Rates based upon sex of applicant
Simplified Issue 4 medical questions
$3,000 to $25,000 Face Value Choose one of three pre-calculated benefits Select own level of benefit in thousand dollar
increments
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Immediate BenefitImmediate Benefit No waiting period to be eligible to receive the full
face value at point of claim
Guarantee NoncancelableGuarantee Noncancelable Benefits cannot change
Rates cannot change
Guaranteed SatisfactionGuaranteed Satisfaction 30-day free look policy
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
IncontestabilityIncontestability Cannot contest, except for non-payment of
premium, after policy is in force for 2 years
SuicideSuicide If Insured commits suicide within 2 years from
policy effective date, benefit will be equal to the
total premiums paid less any debt owed
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Policy Loans Loans are available after the policy has been in
force at least 12 months and has a net cash value Policy is the security for the loan
The Insured will assign policy to BC Life & Health
Interest rate is 8% compounded yearly Interest is due on the policy anniversary
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Automatic Premium Loan Automatically in place unless otherwise indicated
on the application Should premium not be paid within the grace
period, a policy loan in the amount of the premium will be made automatically
• Policy must have enough loan value
• Premium loan subject to same provisions and interest rate as a policy loan
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Automatic Premium Loan May be discontinued with written request
Premiums may be paid either monthly, quarterly, semi-annually or annually
There is a 31 day grace period for premium payment
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
A policy that lapsed (and was not surrendered for cash value) may be reinstated within 5 years of the lapse Must be able to pass underwriting Must pay past due premium with 6% interest Must pay or reinstate debt with compound interest
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Beneficiary is the payee at
the death of the Insured Beneficiary selection is revocable (may be
changed) unless otherwise stated Change must be made in writing and will be
effective as of the signature datePayment of benefit
< $5000 paid in one lump sum > $5000 paid in one lump sum or optional method
of payment
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Optional Methods of Policy Settlement Option 1 - Option 1 - Policy proceeds held as principal and
interest paid to payee Option 2 - Option 2 - Policy proceeds of a specified amount
paid in equal installments to payee Option 3 - Option 3 - Policy proceeds paid in equal
installments for a specified period to payee Option 4 - Option 4 - Life Annuity - monthly installments
paid for life of payee
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Optional methods of policy settlement - cont’d Option 5Option 5 - - Life Annuity with Period Certain - monthly
installments paid for life of payee. Should payee die prior to ‘period certain,’ installments will be paid to payee’s estate
Option 6Option 6 - - Joint Life and Survivorship Annuity - monthly installments paid for life of two payees. At death of one payee, survivor continues to receive installments
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Nonforfeiture Options Option 1Option 1 - - Surrender for cash. Option 2Option 2 - - Reduced paid up life insurance
• Policy is continued in force as Reduced Paid-Up Life Insurance at a reduced face amount. Amount is computed so that its net single premium on the due date of the unpaid premium equals the net cash value
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Sales Requirements Life Insurance Buyer’s Guide must be presented Life Insurance Buyer’s Guide must be presented
at point of saleat point of sale If replacing coverage, Notice Regarding If replacing coverage, Notice Regarding
Replacement must be completed and included Replacement must be completed and included with the application for coveragewith the application for coverage
Must collect full modal premium (include the Must collect full modal premium (include the $30 monthly premium when calculating rates)$30 monthly premium when calculating rates)
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Agent Commissions
85% First Year85% First Year
5% Renewal Year5% Renewal Year
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
Thank you for your interest in
BC LIFE & HEALTH
LifeBenefitsFINAL EXPENSE WHOLE LIFE INSURANCE
For further information contact your
Regional Sales Manager or call
Senior Sales Support at888-209-7839