freedom agent guide

Agent Guide

Issued by Forethought Life Insurance Company

Forethought® FreedomSM

M6143-06 © 2013 Forethought0113

FOR AGENT USE ONLY – NOT FOR USE WITH CONSUMERS

The Forethought® FreedomSM Advantages .......................................... 2

Forethought® FreedomSM Market ............................................................ 3

Forethought® FreedomSM Product .......................................................... 4

Agent Responsibilities ................................................................................ 5

Application Process ..................................................................................... 7

Completing the Application ..................................................................... 8

Forethought Contact Information ....................................................... 11

Table of Contents1

© 2013 Forethought0113

M6143-06 © 2013 Forethought0113


With Forethought Life Insurance Company (“Forethought”), you can be confident your client’s security comes first. We’ve been providing final expense products for over a quarter century. Forethought Life Insurance Company is a stable and secure financial institution and is consistently rated A- “Excellent” by AM Best. As our valued partner, we want to provide you the necessary tools to positively impact the lives of the families and communities you serve. The following guide was created to make the Forethought® FreedomSM application and underwriting interview process as easy as possible for you and your client.

Why Forethought® FreedomSM?• Simplified-issue whole life product

• Comprehensive Underwriting Medical Conditions Guide

• Medication Listing

• Online, fillable applications available in all states1

• Supplemental Benefits at no additional cost*

– Accelerated Death Benefit

– Accidental Death Benefit

– Grandchildren’s Benefit

• Forethought UniversitySM Training & CE Opportunities

– Access to both live and recorded webinars

– Online continuing education through www.successce.com

• Access to Online Reporting at www.forethought.com

• Point-of-sale interviews with decisions rendered in less than

15 minutes

• Product available in 48 states and the District of Columbia*

• Low, competitive premiums

• Commissionable policy fee and commission advance for

qualified agents

• No commission reduction for Graded or Return of Premium

death benefit

Forethought® FreedomSM Advantages

1 Product not available in NY or WA.* All underwriting classes and supplemental benefits not available in all states.

© 2013 Forethought 0113FOR AGENT USE ONLY – NOT FOR USE WITH CONSUMERS

M6143-06

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Forethought® FreedomSM Advantages Forethought® FreedomSM Market

Forethought® FreedomSM is a great choice for your client’s final expense needs. Low premiums, easy to understand policy language and a simple underwriting process combine to make this a prime product for the following:

The Silent Generation

• Approximately 32 million people

• Born from 1930–1945

• Average median income of $25,000

• Modest and conservative

• Seeking protection for their family

The Baby Boomer Generation

• Approximately 77 million people

• Born from 1945–1960

• Average median income $42,000

• Representing $1 trillion in annual spending power

• Preparing for their retirement years

M6143-06 © 2013 Forethought 0113FOR AGENT USE ONLY – NOT FOR USE WITH CONSUMERS

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Forethought® FreedomSM is a whole life insurance product designed to help your client cover the costs associated with end-of-life expenses. These include funeral expenses, medical bills, and other obligations that may occur when the client passes away. In addition to being a simplified-issue product, Forethought® FreedomSM provides your families with a unique value offering. Following are highlights of the benefits offered with this product.

1 Not available in all states. 2 Coverage may vary state by state. Not all

supplemental benefits are available in all states.3 Available to issue ages 50 through 70 only.

Coverage terminates on the policy anniversary following attained age 75. Not available for all risk classifications.

4 Less any policy loans, premiums due, and a transaction fee. The policy terminates following payment of the Accelerated Death Benefit and cannot be reinstated. Not available for all risk classifications. May not be available during the first 12 or 24 policy months.

5 All coverage under this benefit terminates on the earlier of the payment of one Grandchildren’s Benefit or termination of the base policy for any reason. Grandchildren age 18 and over at policy issue will not be covered. Coverage for any particular grandchild will end on his or her 22nd birthday.

6 Certain restrictions apply.

Forethought® FreedomSM Product4

• End-of-life planner• Retirement planning tools

Forethought Planning Tools via www.forethought.com/

planning tools

Additional Benefits

• Upon death of the insured, beneficiaries receive the full policy amount, less loans or premium due, within 48 hours 6

• Quick policy turnaround• Option of policy delivery to agent

or client• Point-of-sale interviews with decisions

rendered in less than 15 minutes

Level Death Benefit Graded Death Benefit Return of Premium Death Benefit

Male/female Smoker/non cigarette smoker (non cigarette smoker is defined as

not having used cigarettes in the last 12 months)

Example:• 60 year old, nonsmoker, male• $10,000 face amount• Monthly APA premium for life• Level: Full death benefit

$45.00 annual premium x 10 = $450.00Annual policy fee + 39.00Annual premium $489.00Monthly APA mode factor x 0.0865Monthly APA premium $42.30

Monthly EFT ................................. 0.0865Quarterly........................................ 0.2600Semiannual ................................... 0.5150Annual ............................................ 1.0000

Life PayLevel ........................................................50–80Graded ....................................................50–80Return of Premium ............................50–80

Issue Ages:

Underwriting Classes1:

Premium Calculation Example:

Premium Modal Factors:

LevelFull face amount and Supplemental Accidental Death Benefit available

GradedNon-Accidental Death = Percentage of faceamount from policy issueWithin 1st Year = 30% of face amountWithin 2nd Year = 70% of face amountIn year 3 + = full face amountAccidental Death = Full face amount and Supplemental Accidental Death Benefit available

Return of PremiumNon-Accidental Death = Return of Premium (percentage based) from policy issueWithin first two years = 110% of premium paidIn year 3 + = full face amountAccidental Death = Full face amount onlySupplemental Accidental Death Benefitnot available

Death Benefits1:

$39.00 (commissionable)

Annual Policy Fee:

Min. Max.Level $2,500 $25,000Graded $2,500 $15,000Return of $2,500 $10,000 Premium

Face Amounts:

Supplemental Benefits1, 2:Accelerated Death BenefitProvides payout of 97% of the base policy face amount if a licensed physician determines a life expectancy of six months or less4

Accidental Death Benefit Pays an amount equal to the Face Amount, in addition to the Face Amount, if death is due to a covered accident. This benefit is available immediately3

Grandchildren’s BenefitProvides coverage for eligiblegrandchildren ages six months up to18 years old. An eligible grandchildis determined to be natural or legallyadopted. The benefit amount is$5,000 or the base policy face amount,whichever is lower, and will be paidonly one time. The benefit does nothave a conversion privilege. 5

FORETHOUGHT® FREEDOMSM PRODUCT HIGHLIGHTS

FORETHOUGHT® FREEDOMSM SERvICE HIGHLIGHTS


Agent Responsibilities

Advertising

Agentaccess and

communication

Authority ofagents

Contracts andlicenses

Market conduct

Policysubmission

Rebating

Replacement

Solicitation

Agents shall not use or authorize any advertisement, circular, company logo, news release or other communication using Forethought’s name or our product names (whether written, audio or visual) without prior written approval by us.

Agents must not disclose any confidential information to any unauthorized person or entity. Without limiting the generality of the foregoing, confidential information of Forethought includes information regarding computer program processes, products and rate setting, names and addresses and any other personal financial or health information of any of Forethought’s policyholders.

Agents are authorized to solicit applications for insurance on such plans as offered by Forethought, to collect the initial premium, and to perform such other duties as Forethought may require.

Agents are not authorized to make, alter, or discharge policies or any other contracts for Forethought, or to waive forfeitures, grant permits, make extra rates for special risk, or bind Forethought in any way.

An agent must be a licensed resident and/or non-resident (if applicable) producer, contracted with Forethought, and receive a Forethought writing number, prior to soliciting business, and before taking an application for insurance in these states.

Agents must remain in compliance with all applicable anti-money laundering laws and regulations and continuing education requirements.

Agents should fax an application with a voided check to Forethought at 1-877-432-1646 or email it to [email protected].

Agents shall not, under any circumstances, pay or allow, or offer to pay or allow any rebate of premiums in any manner, directly or indirectly, and shall not violate any of the laws relating to the subject of insurance of any state in which the agent may be acting on behalf of Forethought.

Agents will not, directly or indirectly, engage in any marketing activities with the intent or effect of replacing in-force Forethought life insurance business. Should such replacement activity take place, commissions will be adjusted according to company rules.

Agents shall inform their prospective client, prior to commencing a life insurance sales presentation, that he or she is acting as an independent life insurance agent and inform the prospective purchaser of the full name of the insurance company which the agent is representing to the buyer.

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© 2013 Forethought 0113


Agent requirementsAn agent MUST be assigned a writing number before taking an application.

Application and initial payment requirements – Use the Forethought® FreedomSM New Business Packet (“NBP”) approved for the state in which the application is signed. NBP’s are available at www.forethought.com. An original application or legible faxed application along with a copy of the initial check, voided check or savings deposit ticket and state required forms, including replacement forms, must be submitted to Forethought Life Insurance Company (“FLIC”).

Application submission – An original application or a legible faxed application along with a copy of the initial check will be accepted. It is the agent’s responsibility to mail the form of payment immediately following the underwriting process. Any changes or corrections on the application must be initialed by the applicant. No errors covered with correction fluid will be accepted.

Backdating – The procedure for an applicant to save age will be allowed up to six months. If you take advantage of this option, you must include all additional back premiums required.

Commissions – Commissions are paid seven days after the Initial Premium draft. The Initial Premium draft is determined by the date requested on the application. Policy fee is commissionable.

Initial payment – No agent or agency checks, CODs, money orders or cashier’s checks will be accepted for premium payment. Checks will be accepted as initial payment on monthly Electronic Funds Transfer (“EFT”). However, the check will be voided and placed in the policy file and the owner’s initial payment will be electronically drafted. Check payment via Direct Bill is the only option for annual, semi-annual, and quarterly billing modes. FLIC may attempt to secure premium a second time when the first attempt is returned for insufficient funds. FLIC will not be responsible for overdraft charges.

Insurable interest – Policyowners and beneficiaries must have an insurable interest in the life of the insured. This means they have a relationship by blood, marriage, or would suffer financial loss if the insured dies.

Insured consent – ALL applications must have the consent and signature of the applicant. If the applicant signs with an “X” or the signature is not legible, we require the applicant’s signature to be witnessed by someone other than the agent.

Policy – Applications must be dated the day the application is completed. Only applications that are signed within the preceding 30 days of receipt at the processing location are processed. Coverage is not effective until the Initial Premium has been deposited and the policy has been issued. An applicant may select a draft date for the Initial Premium no more than 30 days from the application signature date. The Subsequent Premium draft date is the date FLIC will draft the premium, each month, after the Initial Premium draft. The Subsequent Premium draft date may be different from the Initial Premium draft date but no more than 30 days beyond the Initial Premium draft date. Draft dates must be between the 1st and the 28th of the month.

Policy rewrites and re-dating are not allowed.

Reinstatement – Policy reinstatements are allowed up to 3 years from the Paid To Date with full payment of premium to bring policy current. Reinstatement is not allowed in all states, and is allowed only one time. Contact Agent Support Services at 1-888-606-6372 for information on availability and forms.

Replacement – We will permit external replacements as long as the replacement is in the best interest of the client and the appropriate state replacement forms are submitted with the application.

Underwriting – The underwriting is based on the answers to the health questions on the application, MIB, Inc. data, pharmacy data and a telephone interview. If conflicting information is received from MIB, Inc., the client may be asked to provide medical records to FLIC. In cases where the client feels the information upon which our underwriting decision was made was incorrect, we are willing to review the Proposed Insured’s medical records.

If you would like a case to be reviewed, please contact the Underwriting Department at [email protected] or 1-888-606-6372 and we will be happy to assist you in determining the appropriate source from which we would require medical records. FLIC will not be responsible for charges incurred from obtaining medical records.

These underwriting tools are used to help ensure prompt, accurate and consistent underwriting decisions. Our New Business/Underwriting associates are available to answer any questions regarding eligibility and we encourage all agents to utilize them whenever there may be an area of uncertainty. You may reach them by calling 1-888-606-6372.

Hours: Monday – Friday, 8:00am – 5:00pm eastern

Agent Responsibilities6


1. All sections of the Forethought® FreedomSM application and all required documents in the New Business Packet (“NBP”) must be completed and signed before beginning the interview.

2. After pre-qualifying, based on a review of the Proposed Insured’s medical condition and the medical questions, if the Proposed Insured qualifies to apply for a Forethought® FreedomSM benefit, the writing agent should contact Apptical, Inc. (“Apptical”) at 1-800-737-6972 for the Point-of-Sale interview. Forethought has chosen Apptical as its interviewer. The telephone interview is used to confirm information from the application and, once authorization is obtained, the interviewer will run a MIB, Inc. and prescription database check. Telephone interviews are recorded and saved for future reference.

3. The interview must be completed at Point-of-Sale with the Proposed Insured and during Apptical’s hours of operation (8:30AM to midnight Monday through Friday, and 10:00AM to 8:00PM Saturday and Sunday, all Eastern). If the Proposed Insured, and/or Owner (if different), and/or Payor (if different) are not fluent in English, you may request Apptical provide an interpreter.

4. Writing agent will provide the interviewer with the phone number from which you are calling, your name, and your Forethought writing number. The interviewer will confirm that you have completed and signed the application and required documents in the NBP.

5. Writing agent will provide the interviewer with the following about the Proposed Insured: Gender, First Name, Middle Initial, and Last Name, Date of Birth, Social Security Number, Address, Phone Number, Birth State, and Birth Country.

6. The interviewer will provide you a “Reference Number” which should be written in the Reference Number field on the first page of the application.

7. The interviewer will ask you to put the Proposed Insured on the phone to complete the interview. The interviewer will provide you with the eligibility results for the Proposed Insured at the completion of interview.

8. Writing agent must submit the completed application and all required documents in the NBP, regardless of the decision, to Forethought and Forethought must receive this information within 14 days from the completion of the interview.

9. Important: Agents submitting an incomplete application/NBP will be notified by Forethought and asked to comply with the documentation requirements. Failure to comply in a timely manner may result in termination.

Forethought® FreedomSM Application Process 7


Completing the Application

IMPORTANT NOTICE: Order and appearance of questions may vary on state-specific applications. Please print legibly

1. PROPOSED INSURED: Include Proposed Insured’s First Name, Middle Initial, Last Name, Gender, Date of Birth, State of Birth, Social Security Number, Citizenship, Mailing Address, Residential Address (if different from Mailing Address), City, State, Zip Code, Occupation, Phone Number (home), Phone Number (work/cell), and E-mail Address.

2. OWNER (Complete only if the Owner and Proposed Insured are different). Owner must have an insurable interest: Include Owner’s First Name, Middle Initial, Last Name, Gender, Relationship to Proposed Insured, Citizenship, Social Security Number, Mailing Address, Residential Address (if different from Mailing Address), City, State, Zip Code, Phone Number (home), Phone Number (work/cell), and E-mail Address.

3. BENEFICIARY INFORMATION (Beneficiary proceeds will be split equally if no percentages are provided): Primary – First Name, Middle Initial, Last Name, Age, Relationship to Proposed Insured, Social Security Number, Percentage. Contingent – First Name, Middle Initial, Last Name, Age, Relationship to Proposed Insured, Social Security Number, and Percentage.

4. ELIGIBLE GRANDCHILDREN (to be covered by Grandchildren’s Benefit) – Include Grandchildren’s Full Name and Date of Birth, or write in “All Eligible, natural or legally adopted Grandchildren.” Only natural or legally adopted grandchildren of the Proposed Owner are eligible for coverage.

5. LEvEL DEATH BENEFIT will be issued if:· All health questions on the application are answered no by the proposed insured.

· Height and weight of proposed insured are within guidelines.

· MIB, Inc. records provide no information that may be inconsistent with health history provided by the proposed insured on the application.

· Prescription database check provides no information that is inconsistent with the health history provided by the proposed insured on the application.

GRADED DEATH BENEFIT* will be issued if:· Health questions 2 through 8 on the application are answered no by the proposed insured.

· Health questions 9 through 12 on the application contain at least one yes answer by the proposed insured.




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*not available in all states.

Completing the Application

RETURN OF PREMIUM DEATH BENEFIT* will be issued if:· Health questions 2 through 5 on the application are answered no by the proposed insured.

· Health questions 6 through 8 on the application contain at least one yes answer by the proposed insured.




6. REPLACEMENT INFORMATION – Both questions must be answered. If question 2 is answered yes, provide the name, face amount, and policy number of current coverage and submit the state specific replacement form.

7. INSURANCE PLAN INFORMATION: Payor – Check Proposed Insured, Owner or Other. Plan of Insurance – Check Level Death Benefit, Graded Death Benefit or Return of Premium. Make sure this selection matches the eligibility decision provided at the conclusion of the interview. Billing Mode – Check Monthly EFT, Quarterly, Semi Annually or Annually. Insurance Amount – List face amount of insurance applying for. Initial Premium – Select a payment option and list the amount of the initial premium. Agent or agency checks, CODs, money orders and cashier’s checks will not be accepted for premium payment. If EFT is selected, specify the desired Initial Premium draft date if the payor has a preferred date. This date must be within 30 days of the application signed date.

Subsequent Premium – Agent or agency checks, CODs, money orders and cashiers checks will not be accepted for premium payment. If EFT is selected, specify the desired draft date if the payor has a preferred date. The Subsequent Premium draft date is the date Forethought will draft the premium each month after the Initial Premium draft. The Subsequent Premium draft date may be different from the Initial Premium draft date but not more than 30 days beyond the Initial Premium draft date.

8. BANK DRAFT AUTHORIZATION – If payment is drawn from a checking account, attach a voided check. If drawn from a savings account, provide the account number, routing number, bank name and phone number for verification. We may draft a second time for each NSF transaction. Forethought will not be responsible for NSF bank charges. Payor must sign and date this section if EFT is selected.

9. FRAUD WARNING/NOTICE – Review with applicant based on state of issue. State required notices are outlined.

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*not available in all states.

Completing the Application10


10. AGREEMENT – Review with applicant.

11. AUTHORIZATION TO OBTAIN AND DISCLOSE INFORMATION – Review with applicant. This authorizes Forethought Life Insurance Company to obtain protected health information.

12. SIGNATURES – Proposed Insured, Owner, and Licensed Agent signatures, dates, city and state are all required.

13. AGENT DECLARATION AND SIGNATURES – To be completed by the licensed agent meeting with the proposed applicant.

Health Insurance Portability and Accountability ActThe Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) combats waste, fraud and abuse in the insurance industry. HIPAA guidelines have specific disclosure requirements that prohibit unauthorized persons fromviewing or receiving confidential medical information. As a result, strict HIPAA regulations prohibit us from divulgingor discussing, with the agent, any medical information obtained during underwriting.

MIB, Inc.MIB, Inc., is a membership association of life insurance companies. The primary mission of the MIB, Inc., is to provide an alert to its member insurance companies against omissions and fraud. This helps MIB, Inc., member companies to protect their interests and leads to cost savings that can be passed on to the insurance consumer.

The authorization sections on the application authorize Forethought to access the MIB, Inc., and to obtain any necessary medical records on the Proposed Insured during the underwriting process. All necessary signatures must be on the application at the time of submission or the application will be returned. Please note that the MIB, Inc., is used as an alert. Actual underwriting decisions are not based on MIB, Inc., inquiry results alone.

Completing the Application Forethought Contact Information 11


ONLINE SERvICES:Access product information, service details, commission and policy reports, and other valuable information by logging on to www.forethought.com.

UNDERWRITING:To complete phone interviews of the health questions, contact Apptical at 1-800-737-6972. All other questions or status emails related to underwriting can be sent to [email protected]

AGENT SUPPORT SERvICES:Call 1-888-606-6372 for assistance with product sales, commissions, and agent contracting.

SUBMITTING A NEW BUSINESS APPLICATION:Fax to 1-877-432-1646Email to [email protected]

FORETHOUGHT MAILING ADDRESSES:Forethought FreedomAttn: New BusinessP.O. Box 148Batesville, IN 47006

Overnight DeliveryForethought FreedomOne Forethought Center Batesville, IN 47006

SUPPLY ORDERS:Order your supplies online at www.forethought.com.

Email your order to [email protected] for processing.

Contact 1-888-606-6372 for assistance with placing the order.

CLIENT SERvICE CENTER:Clients may access specific policy details through our customer service via phone or email.

Phone: 1-888-606-6372Email: [email protected]

Forethought Life Insurance Company

Administrative Office One Forethought Center

Batesville, IN 47006

Phone: 1-888-606-6372 Email: [email protected]

www.forethought.com

M6143-06 © 2013 Forethought 0113


Forethought® FreedomSM is funded through the purchase of whole life insurance from Forethought Life Insurance Company, Indianapolis, Indiana. Depending upon insurance plan offered death benefit may vary during the first two policy years. A representative who may also be an agent of Forethought Life Insurance Company can answer any questions you may have.

Forethought Life Insurance Company (“Forethought”), provides innovative insurance and financial solutions for families managing retirement and end-of-life needs. Headquartered in Indianapolis, Indiana, Forethought provides life insurance and annuities.

Forethought has been consistently recognized by A.M. Best for financial strength.

As of June 30, 2012, Forethought has assets owned and under management in excess of $5.9 billion, approximately $1.7 billion in annual revenue, and more than $5.3 billion of life insurance and annuity reserves.

With over 25 years of proven integrity, Forethought has served more than a million customers who rely on us to protect the financial future of their families.

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