Download - Lifetime Legacy
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Lifetime LegacyLifetime Legacy
Americo Financial Life and Annuity Insurance Company
Product Training
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Life Insurance
What is Life Insurance? Peace of Mind Business Tool Family Protection Retirement Tool
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Life Insurance
Life Insurance Questions How much life insurance does a client need? What kind of life insurance should your client buy? When is the best time for your client to purchase life
insurance? Which company should you represent?
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Life Insurance
How much life insurance does a client need? How much of a legacy do they want to leave
behind? How much debt do they want to pay off for family? How long do they want to subsidize the lost
income from their death? What responsibilities do they have that may
become a burden on family?
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Life Insurance
What kind of life insurance should your client buy?
Term or Permanent
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Life Insurance
When is the best time for your client to purchase life insurance? Younger and healthier clients usually get lower
rates. If you wait too long, you take the risk of not
qualifying for any insurance.
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Life Insurance
Which company should you represent? A company that offers:
• Strong Ratings• Competitive Products• Great Service
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This is a summary overview of the product. Please refer to the Product Agent Guide and the policy for specific details.
Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give tax or legal advice. Clients should consult with a qualified, professional legal or tax advisor regarding the information and concepts contained in this material.
The product availability may vary by state. Please refer to the Product Ready for Sale Guide on Agent Café for specifics.
Any materials not provided by Americo that are used in presenting Lifetime Legacy to clients or agents must be approved in writing by Americo prior to use.
Lifetime Legacy is a flexible premium universal life insurance product. It is not a bank product, nor is it FDIC insured. It is not a LONG-TERM CARE product.
Agent Training Presentation Disclosures
This presentation was designed to assist Americo agents in understanding and presenting Lifetime Legacy. Please review and take note of the following general disclosures:
Policy Series 258
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Market Product Positioning How It Works Features & Benefits Simple Underwriting Sales Ideas Marketing Package
Policy Series 258
Lifetime Legacy
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Senior market Growing market
*Insurance Advisory Board, “Generations as Markets,” January, 2003
The US Senior market (individuals above 65) is expected to nearly double between 2000 and 2020.*
Senior Market Projected Growth (millions)
33
53
0
10
20
30
40
50
60
2000 2020
Policy Series 258
Lifetime Legacy Market
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From 1998 to 2052, the amount of wealth transferred as a result of death is projected to be between $41 and $136 trillion.*
Total annuity consideration is over $2 trillion in the last 10 years.
Only a small percentage annuitize.
LIMRA estimates that 80% of policyholders die with their annuities in the accumulation stage.
* Boston College Social Welfare Research Institute, “Why the $41 trillion Wealth Transfer Estimate is still Valid: A review of Challenges and Question.”, January 6, 2005
Policy Series 258
Lifetime Legacy Market
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Annuities and other financial vehicles are being used to transfer wealth from one generation to the next. By design By accident May not be the most efficient transfer method
Policy Series 258
Lifetime Legacy Market
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Client Profile Money in CDs, Money Market Accounts,
annuities, cash value life insurance, etc. Don’t need this money for income Worried about health emergencies…nursing
home confinement Want to leave the greatest possible legacy
How many times have you asked your clients if they have an asset that is specifically meant for loved ones?
Policy Series 258
Lifetime Legacy Market
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Where are seniors storing their savings?
CDs, Money Market Accounts,
Cash
Annuities
Life Insurance
Policy Series 258
Lifetime Legacy Market
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The problem: Annuities are excellent accumulation tools Not the best vehicles to transfer wealth to loved
ones Beneficiaries pay the taxes May significantly reduce the amount of wealth
transferred
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Lifetime Legacy – How it works
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The solution: Lifetime Legacy puts the control over taxes back in
the hands of the client Provides the beneficiaries with a guaranteed death
benefit generally free from income taxes May substantially increase the amount of wealth
transferred
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Lifetime Legacy – How it works
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Other major concerns for seniors Losing their retirement “nest egg” Losing their independence Becoming a burden on the family Emergencies
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Lifetime Legacy – How it works
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Common “Emergency” Needs for Cash
Medical Bills A New Car Vacations Nursing Home Expenses
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Lifetime Legacy
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In 2002, nursing home care cost, on average, was roughly $50,000 per year.*
The older population (ages 65 or older) was numbered 35.6 million in 2003, an increase of 3.3 million, or 10.2% since 1992.**
*“Beyond 50: A Report to the Nation on Trends in Health Security,” AARP, May 2002
**”A Profile of Older Americans: 2003”, Administration on Aging
Policy Series 258
Lifetime Legacy
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Efficient Transfer to Loved Ones Immediate increase in the value of the asset Passes generally income tax-free Avoid the costs & delays of probate
Guaranteed Minimum Death Benefit for Life No additional premiums necessary Assuming no loans or withdrawals
Guaranteed Cash Surrender Value Guaranteed to never be less than the initial premium after the 5th policy
year
The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken.
Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified legal or tax advisor regarding the information and concepts contained in this material .
Policy Series 258
Lifetime Legacy - Highlights
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Accelerated Benefit Rider Up to 80% of the Guaranteed Minimum Death
Benefit available*• Permanent confinement to a nursing home
– Skilled, intermediate care or custodial care– 90 Day elimination period
• Terminal Illness (12 months life expectancy) Lump sum available Quarterly or semi-annual Not Long Term Care Insurance
*80% of the guaranteed minimum death benefit less any policy loans
Policy Series 258
Lifetime Legacy - Highlights
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Access to Cash Withdrawals after the 5th policy year
• Reduces the Guaranteed Minimum Death Benefit by a proportional amount
• Guarantees stay intact Policy loans after the 1st year
• Net 2.5% to the client
The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken.
Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified professional legal or tax advisor regarding the information and concepts contained in this material.
Policy Series 258
Lifetime Legacy - Highlights
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Target issue ages 55 to 85 Minimum single premium $15,000 Maximum single premium
Premium that generates no more than $150,000 Net Amount at Risk
NAR over $150,000 with Home Office approval
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Lifetime Legacy - Highlights
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What is Net Amount At Risk?For underwriting purposes, the Net Amount at Risk is the difference between the Initial Guaranteed Minimum Death Benefit
and the Initial Single Premium.
For example: Female, Non-Nicotine, Age 65
(+) Initial Guaranteed Minimum Death Benefit: $115,207
(-) Initial Single Premium: $50,000
(=) Net Amount at Risk (NAR): $65,207
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Lifetime Legacy - Highlights
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No commission chargeback at death or surrender
Non-qualified money only
Beneficiary payout options No restriction payout – lump sum or any other payout option available by contract Monthly restriction payout – monthly payments of death benefit over a period of no less
than 60 months
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Lifetime Legacy - Highlights
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No NAIC illustration required Quoting guarantees only Simple Comparative funding
Repositioning from annuities – tax-deferred accounts
Repositioning from CDs – taxable accounts Sales-oriented output
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Lifetime Legacy - Software
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Lifetime Legacy - Software
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Policy Series 258
Lifetime Legacy - Software
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Lifetime Legacy - Software
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Policy Summary Benefits Graphical Comparison
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Policy Summary Summary of assets
repositioned What is the real value
today? Comparison to Lifetime
Legacy
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Policy Summary Guaranteed values Run to age 100 or for 6
years Will show loans and
withdrawals
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Underwriting Requirements Case specific
information Forms by state Underwriting
requirements
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Worksheet & Disclosure Required disclosure Optional worksheet Summarizes software
input Available at Relizon and
on Agent Café
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Specially designed Senior market Fast & efficient
Simplified Issue – Standard through Table 4
Specially designed application Minimal health questions MIB Authorization & Accelerated Benefit Disclosure
included
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Lifetime Legacy - Underwriting
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Simplified Issue Based on Net Amount at Risk
81-85
76-80
71-75
66-70
61-65
55-60
$100,000 – 150,000$0 – 100,000Age
Net Amount at Risk
Telephone Interview
APS (if necessary)
Telephone Interview & APS - Paramed & HOS if necessary
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Lifetime Legacy - Underwriting
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Teleunderwriting Point of Sale Toll-free number Complete details in Agent Guide
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Lifetime Legacy - Underwriting
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Underwriting tools Impairment Guide Combination Impairment Guide
• Both on Agent Café & in Agent Guide Prescription Drug Guide on Agent Café Direct Access to your underwriter
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Lifetime Legacy - Underwriting
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Our goal: Easy to do business Paper
Application Disclosure & Benefit Worksheet Transfer & replacement forms by state
All on Super Agent Kit & Agent Café
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Lifetime Legacy - Underwriting
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Guarantees Death Benefit Cash Values
High Death Benefit Competitive Commissions Accelerated Death Benefit Simplicity
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Lifetime Legacy
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Variety of product types Variety of benefits Lifetime Legacy takes the best of all
worlds Death Benefit Guarantees Commissions Underwriting
Competitive
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Lifetime Legacy
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Lifetime Legacy Kit Agent Guide Q&A for clients and agents Client Brochure Client Video Software New Agent CD – Special edition
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Lifetime Legacy
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Your Clients that may… Have reached retirement age.
(ages 55 to 85). Already have sufficient retirement income. Have sufficient assets to maintain desired lifestyle. Have no need for complicated estate planning. Want to leave the greatest possible legacy to heirs. Be in reasonably good health. Have assets that are earmarked for loved ones or
charities.
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Lifetime Legacy
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Earmarked assets are in Annuities CDs Money Market Accounts Outdated cash value life insurance policies
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Lifetime Legacy
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Case #1
Single Premium
$50,000 $115,207
Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000.
1
Initial Guaranteed Minimum
Death Benefit
For Illustrative Purposes OnlyPolicy Series 258
Lifetime Legacy
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Case #1
Single Premium
Initial Guaranteed Minimum
Death Benefit1
Accelerated Benefit Amount
Available
$50,000 $115,207$92,166
Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000.
2
For Illustrative Purposes Only
Accelerated Benefit RiderSeries 2149
Policy Series 258
Lifetime Legacy
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Case #2
1
2
For Illustrative Purposes Only
65 year old female, non-nicotine
$50,000 In CD’s
$15,000 In Money Market Funds
$60,000 In Mutual Funds
$125,000 Total Estate at Death
$115,207 Lifetime Legacy Death Benefit
$15,000 In Money Market Funds
$60,000 In Mutual Funds
$190,207
Total Estate at Death
Current Portfolio
Portfolio with the $50,000 CD repositioned to Lifetime Legacy
1
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Lifetime Legacy
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Case #3
Lifetime Legacy
Your client has two grandchildren. She would like to leave a legacy in the amount of $100,000 to each child. She has $100,000 in an annuity earning 5.5%. She is 69 years old and is disappointed that she may not make her goal.
$100,078 Single Premium = $200,000 Lifetime Legacy
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Specifically designed for the senior wealth transfer market Guaranteed lifetime death benefit Guaranteed cash surrender values Easy to understand Competitive commissions Simplified underwriting
Living Benefits Access to cash
Lifetime Legacy – The Package
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Quote software with comparative capabilities
No NAIC illustration required Agent training and recruiting materials Sales ideas Client video and sales materials Personalized sales support
Lifetime Legacy – The Package
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Direct access to your underwriter Fax your app program Competitive portfolio of annuities and life
insurance Agent Café Americo.com Daily EFT of commission
Lifetime Legacy – The Package
Policy Series 258
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Lifetime Legacy (Policy Series 258) is underwritten by Americo Financial Life and Annuity Insurance Company and may vary in accordance with state laws. Some products and benefits may not be available in all states. Certain restrictions apply. Benefits under the Accelerated Benefit Payment Rider (Series 2149) may vary by state and will not be available in all states. Certain limitations and exclusions apply. For further information, please refer to the policy or contract.
Policy Series 258
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Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Please consult a qualified, professional legal or tax advisor regarding the information and concepts contained in this material.
Products are underwritten by Americo Financial Life and Annuity Insurance Company, Kansas City, MO, and may vary in accordance with state laws. Some products and benefits may not be available in all states. Certain restrictions apply. For further information, please refer to the policy or contact Sales Support at 1-800-231-0801 x8410.
LIFE PRODUCTS