dinamic foundation - high point university | high point, ncacme.highpoint.edu/~jwehrley/bua234/a...

presented toGary Sample

presented byScott SorrellCapital Financial Solutions8816 Six Forks Rd.Suite 301Raleigh, NC 27615(919) [email protected]

prepared onNovember 05, 2014

DInamic FoundationGuaranteed RenewableDisability Income Insurance

Why DI?

"It won't happen to me."

*Frequency of Disabling Injuries Class One Every...AllMotor VehicleWorkWorkers Off-the-JobHomePublic Non-Motor Vehicle

11510

324

second seconds seconds seconds seconds seconds

* Source: National Safety Council, Injury Facts 2010 Edition

Why is your income your greatest asset?

This is an illustration and not a contract

4502-GR/Version: 2.90.500/NCPage 2 of 9

What is your greatest asset: Your home? Your Business? They both are vital to yourlifestyle, and they are the result of your most valuable asset - your ability to earn anincome. If you become too sick or hurt to work, what would happen to everything you haveworked so hard to build for yourself, your family and your future?

You probably think of a disability as something that happens to other people. But simplybelieving "it won't happen to me" doesn't mean at sometime in your life you won't be facedwith a disabling illness or injury. Becoming too sick or hurt to work can happen to anyone atany time.

Annual SalaryAge $50,000 $75,000 $100,000 $150,000 $200,000 $250,000 $300,000

30354045505560

1,850,0001,600,0001,350,0001,100,000

850,000600,000350,000

2,775,0002,400,0002,025,0001,650,0001,275,000

900,000525,000

3,700,0003,200,0002,700,0002,200,0001,700,0001,200,000

700,000

5,550,0004,800,0004,050,0003,300,0002,550,0001,800,0001,050,000

7,400,0006,400,0005,400,0004,400,0003,400,0002,400,0001,400,000

9,250,0008,000,0006,750,0005,500,0004,250,0003,000,0001,750,000

11,100,0009,600,0008,100,0006,600,0005,100,0003,600,0002,100,000

The table shows how much money you could earn if you work until you reach the age of 67

*This assumes a maximum potential payout if you are totally disabled for the entire benefit period. Actual benefits will vary based oncertain factors, such as age at disability and riders selected.

DINAMIC FOUNDATIONDisability Income Insurance Summary Illustration

Guaranteed Renewable

Policy Information AmountAnnual

PremiumBase Monthly Benefit Elimination Period: 90 Days Maximum Benefit Period: To Age 65

$4,000 $1,254.40

Total Monthly Benefit $4,000 $1,254.40

Potential Annual Base Benefit ($4,000.00 x 12 months) = $48,000*Potential Cumulative Base Benefit ($4,000.00 x 12 months x 20 years) = $960,000

Definition of Disability: Own Occupation for the length of the benefit period

Base Policy FeaturesNondisabling Injury Benefit $2,000 No ChargeCOBRA Premium Benefit No ChargeSurvivor Benefit No ChargeGood Health Benefit No ChargePresumptive Total Disability No ChargeSurgical Transplant Benefit No ChargeCosmetic Surgery Benefit No ChargeRehabilitation No ChargeWaiver of Premium No Charge

Optional Riders SelectedEnhanced Residual Disability Rider $120.40Automatic Increase Rider (AIR) No Charge

Total Annual Premium $1,374.80Semi-Annual $703.74Quarterly $360.04Monthly $118.79


defOO/4502-GR/Version: 2.90.500/NCPage 3 of 9

Designed for: Gary Sample Prepared by: Scott SorrellRates: Male, Non Tobacco Prepared on: 11-5-2014Occupation Class: 6A Issue State: North CarolinaIssue Age: 45 Premium: Level

In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE 68510. In New York, DisabilityIncome insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY 10018. Policy and riders may varyand may not be available in all states.

This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas LifeInsurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financialcondition and contractual obligations. For more information about Ameritas®, visit ameritas.com.

Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company.© 2013 Ameritas Mutual Holding Company



Automatic Increase Rider

AIR Increased Benefits and Premiums

Age Base Monthly Benefit Annual Premium45 4,000 $1,374.8046 4,160 $1,431.4747 4,320 $1,491.1448 4,480 $1,553.5949 4,640 $1,618.5450 4,800 $1,685.74

Automatic Increase Rider: This rider is designed to provide for a 4% simple automatic increase in yourBase Monthly Benefit, on each policy anniversary, for up to five years. This increase will be made withoutevidence of insurability and will also apply to the Residual and Cost of Living Adjustment riders (if part ofyour policy). Declining an increase forfeits your right to future increases.







Policy Information

Thank you for considering Ameritas Life Insurance Corp. for your disability income insurance needs. Webelieve there is no better way to protect against the financial devastation a disability could cause you andyour family. To help you better understand how your Ameritas Life Disability Income Insurance policy canwork for you, we have described below the key features and options of your policy. If you have questionsabout what these features mean to you, contact your agent or call our home office toll-free at 1-800-319-6901.

Guaranteed Renewable to Age 65: Until you reach age 65, your policy cannot be canceled andrestrictions cannot be added, as long as you continue paying premiums as due. We reserve the right tochange the premium rates; however, the change will apply to all policies of this form and class for yourstate. Your new premium will be based on your original issue age and occupation.

Conditionally Renewable for Life: You may renew this policy on each policy anniversary after age 65for life if you are actively working at least 30 hours each week, you are not receiving a benefit under thispolicy or any attached rider, and the policy is in force with no premiums in default. When renewing yourpolicy, you will need to submit documentation of your current income and pay the premium due for yourage at that time.

Base Monthly Benefit: We will pay the Base Monthly Benefit for each month you are totally disabled,under the terms of the policy, due to accident or sickness. Benefits begin after you satisfy the eliminationperiod. Benefits continue as long as you remain totally disabled or to the end of the benefit period youselect, if sooner.

Waiving Physician's Care: While you are disabled, you must be under the regular care and treatmentof a physician appropriate for the condition causing disability. We will waive this requirement, if, in theopinion of that physician, continued medical treatment will not improve your condition.

Successive Periods of Disability: Successive periods of disability will be considered, as one period if:(a) they are caused by the same or related conditions, (b) they are separated by less than 180 days, and(c) each begins while the policy is in force. The elimination period and benefit period will not restart.



Own Occupation for the Length of the benefit period (OO): Total Disability or Totally Disabled meansthat, solely due to a sickness or injury, you are not able to perform the material and substantial duties ofyour occupation.

Your occupation means the occupation or occupations that you were engaged in, based on the dutiesyou were performing for wage or profit, at the time disability began. If you are not employed at the timeof disability, your occupation means any occupation you are able to perform based on your education,training and experience.

If you are a physician or dentist and have limited your duties to the performance of the usual andcustomary functions of a specific, professionally recognized medical or dental specialty, we will considerthat specialty your occupation.

Exceptions and Limitations: Benefits will not be paid: (a) for a disability caused or contributed by war,declared or undeclared, or any act or incident of war, or as a result of military service when scheduledactive duty is more than three months, (b) for a disability resulting from an intentionally self-inflictedinjury, (c) during any period you are incarcerated, (d) except as direct result of sickness or injury, if youare prevented from engaging in your occupation as a result of suspension, revocation, or surrender ofyour professional license or certification, (e) for more than 24 months during the lifetime of the policy fortotal disability caused by a mental/nervous disorder and/or drug or alcohol abuse, or (f) for more than 12months during the lifetime of the policy, if you reside outside of the United States.

Base Policy FeaturesNondisabling Injury Benefit: If you suffer an injury requiring medical treatment prescribed by aphysician or the repair to natural teeth prescribed by a dentist, we will pay the expense of suchtreatment, not to exceed the lesser of 50% of the base benefit or $3,000. (Not available for Colorado,Connecticut, Maryland or Massachusetts.)

COBRA Premium Benefit: If, you become unemployed due to a disability and, as a result, you arepaying COBRA medical coverage premiums, we will reimburse you for those premiums up to $1,000 amonth, beginning with the first premium due after you satisfy the elimination period of this policy but notto exceed 18 months. Reimbursement is also available if continuing your employer-group medical planunder the provisions of a state continuation plan. We will not pay more than 100% of the COBRApremium expense incurred monthly, under all policies.

Survivor Benefit: Should you die after satisfying the elimination period and while monthly disabilitybenefits are being paid under the policy, we will pay an additional three months of Base Monthly Benefitto your designated beneficiary, if any, otherwise to your estate.

Good Health Benefit: For every consecutive policy year you complete without receiving any benefitsunder the policy, we will reduce the elimination period by two days. In no case will the elimination periodbe reduced to less than 30 days.

Presumptive Total Disability: You will be considered totally disabled if you sustain the complete loss ofhearing in both ears, sight in both eyes, speech, or the use of any two limbs. The elimination (waiting)period will be waived, and benefits will be payable for as long as the presumptive disability continues,even if you are working in an occupation. The loss does not need to be permanent or irrecoverable.

Surgical Transplant Benefit: After your policy has been in force for 6 months, if a part of your body istransplanted into another person's body and as a result you become totally disabled, we will pay benefitsas if the disability was due to a sickness, except that we will waive the elimination period.

Cosmetic Surgery Benefit: If a total disability results from cosmetic surgery to correct a disfigurementor to improve your appearance, we will consider you Totally Disabled due to sickness, provided thecosmetic surgery occurs more than six months after the issue date of the policy.

Rehabilitation: You can participate in an occupational rehabilitation program without being considered"recovered" from your disability. Moreover, if we approve the program, we will pay for the reasonableexpense of the program, subject to our mutual agreement in writing.



Waiver of Premium: After 90 days and once a claim is approved, we will begin waiving premiums for aslong as you are disabled - even beyond the benefit period. We will refund the premiums paid during theelimination period.

RidersEnhanced Residual Disability Rider: We will pay you a residual benefit while you are residuallydisabled if you suffer a loss of at least 15% of your net earned income, and you are able to perform oneor more, but not all, of the material and substantial duties of your occupation or you are unable to engagein your occupation for more than 80% of the time as was usual prior to the start of your disability.Recovery Benefit - In the month immediately following a period for which disability benefits have beenpaid, upon recovery and return to your occupation on a full-time basis, a residual benefit will be paid ifyou maintain a loss of, at least, 15% of your net earned income and that loss is a direct result of yourprevious disability.

Automatic Increase Rider: This rider is designed to provide for a 4% simple automatic increase in yourBase Monthly Benefit, on each policy anniversary, for up to five years. This increase will be made withoutevidence of insurability and will also apply to the Residual and Cost of Living Adjustment riders (if part ofyour policy). Declining an increase forfeits your right to future increases.



The options shown above reflect changes in the base benefit and elimination period only. However, the SIS eliminationperiod will never be less than the base elimination period.



Premium Alternatives

Definition of Disability: Own Occupation for the length of the benefit period

5 Yr Benefit 10 Yr Benefit To Age 65 To Age 67 To Age 7030 Days $1,667.60Base Policy $1,520.80 N/A N/A N/A N/AEnhanced Residual Disability $146.80 N/A N/A N/A N/AAutomatic Increase $0.00 N/A N/A N/A N/A

60 Days $1,366.00Base Policy $1,246.40 N/A N/A N/A N/AEnhanced Residual Disability $119.60 N/A N/A N/A N/AAutomatic Increase $0.00 N/A N/A N/A N/A

90 Days $954.40 $1,227.60 $1,374.80 $1,472.80 $1,809.60Base Policy $872.00 $1,120.40 $1,254.40 $1,343.60 $1,650.40Enhanced Residual Disability $82.40 $107.20 $120.40 $129.20 $159.20Automatic Increase $0.00 $0.00 $0.00 $0.00 $0.00

180 Days $799.60 $1,025.20 $1,148.00 $1,229.60 $1,508.80Base Policy $730.80 $936.40 $1,048.00 $1,122.00 $1,376.40Enhanced Residual Disability $68.80 $88.80 $100.00 $107.60 $132.40Automatic Increase $0.00 $0.00 $0.00 $0.00 $0.00

365 Days $685.60 $878.00 $981.60 $1,051.20 $1,288.40Base Policy $627.20 $802.40 $896.80 $960.00 $1,176.00Enhanced Residual Disability $58.40 $75.60 $84.80 $91.20 $112.40Automatic Increase $0.00 $0.00 $0.00 $0.00 $0.00

730 Days $785.60 $878.40 $940.00 $1,151.60Base Policy N/A $718.40 $802.80 $858.80 $1,051.60Enhanced Residual Disability N/A $67.20 $75.60 $81.20 $100.00Automatic Increase N/A $0.00 $0.00 $0.00 $0.00









EZ App with Simplified RequirementsEZ App is an effective alternative to the traditional application process. The EZ App process speedsunderwriting time, eliminates redundant medical history and lifestyle questions, and reduces oreliminates the financial and medical requirements that are part of the traditional process.

Financial Requirements – On the application, provide income for the past three years (includes currentyear). Business Owners must submit a completed 1040, including all supporting schedules.Traditional Application ProcessIf you choose not to use the EZ App process, you will need to satisfy the requirements as outlinedbelow:

Financial Requirements – On the application, provide income for the past three years (includes currentyear). All joint returns require a copy of the W-2 from applicant only.To expedite the underwriting process, please submit an illustration of the desired plan design with theapplication.

Medical Requirements Financial Requirements

Medical Requirements Financial Requirements

Ages Mini-Exam* EKG18 - 40 $5,001** N/A41 - 50 $5,001** N/A

51+ $5,001** $10,001

To determine medical requirements, add thebase monthly benefit, with the SocialInsurance Substitute (SIS) Rider and one-halfthe Future Increase Option (FIO) Rider.

Financial Documentation Summary – Individual DIOwnership

Amount* EmployeeSole

Proprietor Partnership S-Corp C-Corp**

$5,000or less N/A

Complete1040 and

Schedule C

W-2 andSchedule E

or K-1

W-2 andSchedule E

or K-1W-2 and

1120

$5,001 -$7,500

Paystubor W-2

Complete1040 and

Schedule C

W-2 andSchedule E

or K-1

W-2 andSchedule E

or K-1W-2 and

1120

$7,501 -$14,999

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)and 1120

$15,000and up

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.Personalreturns

and 1120

Blood/HOS Paramed EKG 18 - 40 $3,000* $5,001** N/A41 - 50 $3,000* $4,001** N/A

51+ $3,000* $2,001** $10,001To determine medical requirements, add thebase monthly benefit, with the SocialInsurance Substitute (SIS) Rider and one-halfthe Future Increase Option (FIO) Rider.

Financial Documentation Summary – Individual DIOwnership

Amount* EmployeeSole

Proprietor Partnership S-Corp C-Corp**

Up to$7,500

Paystubor W-2

Complete1040 andSched. C

W-2 andSched. E

or K-1

W-2 andSched. E

or K-1W-2 and

1120

$7,501 -$14,999

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)

Complete1040 (All

Schedules)and 1120

$15,000and up

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.1040 (All

Schedules)

2 yrs.Personalreturns

and 1120

* Mini-Exam includes blood, urine, height,weight, blood pressure and pulsereadings. Medical questions are notincluded in the mini-exam since they areasked during the telephone interview.

** This amount reduces to $4,001 inCalifornia.

* Applied for and in force with all companies. All joint returns require a copy of W-2sfrom the applicant only.

** Form 1120 is not required if applicant owns 20% or less of the C-Corp.

* This amount reduces to $1,000in California.

** This amount reduces to $2,001in California.

* Applied for and in force with all companies.** Form 1120 is not required if applicant owns 20% or less of the C-Corp.

Gary Sample - Individual IllustrationCover PageWhy Disability?Summary Illustration (OO Level)Automatic Increase Rider (OO Level)Policy InformationPremium Alternatives (OO Level)EZ App with Simplified Requirements

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