Universal Life Insurance with Return of Premium Benefit

1
Universal Life Insurance with Return of Premium
Benefit
2
Custom Accumulator III

• 50,000 minimum face amount
• Issue ages
• 15 days to age 75 (non tobacco)
• Age 18-70 (tobacco)
• Super Preferred rate class available

3
Custom Accumulator III

• Cash Value Accumulation Test (CVAT)
• Return of premium
• Age 0-64 95 years 1-5, 100 years 6-10
• Age 65 95 years 1-5, 100 years 6-7
• Withdrawals available year 2 (limitations apply)
• Non-guaranteed interest rate bonus

Not available in all states bonus interest not
applied to loaned funds
4
Chronic Illness Accelerated Benefit Rider

• No cost at issue! No special underwriting
• Available To Age 75 up to Table 4
• 2 of 6 Activities of Daily Living (ADLs), Severe
  Cognitive Impairment requiring substantial
  supervision, physician certification, 90 day
  elimination period
• One election every 12 months
• Maximum per election is lesser of 24 of Death
  Benefit or 240,000
• Minimum per election is lesser of 5 or 75,000
• 200 administration fee per election (may vary by
  state)
• Amount adjusted for expected mortality

Accelerated Benefit Rider for Continuous
Confinement in MN
5
Competitive Features

• Access to funds through loans and withdrawals
• CVAT allows heavy funding
• Interest rate bonus
• Competitive cash value growth

Not available in all states bonus interest not
applied to loaned funds
6
45 male, Preferred Non-Tobacco
Interest rate bonus years 6
95 ROP
100 ROP
The information presented is hypothetical and not
intended to project investment results.
Illustration is not complete unless all pages are
included.
15 year surrender charge period
7
Who Can Benefit From This Product?

• Think of your own clients
• Parents with kids aged 12-18
• Existing policy with cash value growth goal
• Looking to pass money on to heirs
• Seeking to solidify retirement income

8
Sales Ideas

• College Funding
• 1035 Exchanges
• Legacy Building
• Retirement Funding

9
College Funding

• Life insurance can help assure money for college1
• Access to funds with return of premium
• Outside Federal Application for Student Aid
  (FAFSA) formula2

1 The primary purpose of life insurance policies
is to provide a death benefit to beneficiaries.
Because of the uncertainty surrounding all
funding options except savings, it is critical to
encourage your clients to make personal savings
the cornerstone of your clients college funding
program. However, even a well-conceived savings
plan can be vulnerable. Should your clients die
prematurely, their savings plan could come to an
abrupt end. To protect against this unexpected
event, life insurance may be the only vehicle
that can help assure the completion of a funding
plan. In addition to the financial protection
aspect of insurance, the tax-deferred buildup of
cash values can be part of your clients college
savings plan. Generally, distributions up to the
contract's cost basis are tax free. Moreover,
loans in excess of the cost basis are also tax
free as long as the policy remains in force. 2
See FAFSA application at the Federal Application
for Student Aid website at http//www.fafsa.ed.gov
/
10
College Funding
Premature death protection
45 male, Preferred Non-Tobacco
The information presented is hypothetical and not
intended to project investment results.
Illustration is not complete unless all pages are
included.
Assets for college
Exit strategy value
11
1035 Exchange

• Fantastic cash value growth potential
• Overcome objections

12
1035 Exchange
45 male, Preferred Non-Tobacco
Overcome the Where did my money go objection.
The information presented is hypothetical and not
intended to project investment results.
Illustration is not complete unless all pages are
included.
Excellent cash value growth
13
Legacy Building

• Leverage single-premium into death benefit
• Return of Premium feature (peace of mind)
• Cash Value growth (flexibility and control)
• Chronic Illness Accelerated Benefit Rider

14
Legacy Building
65 male, Standard Non-Tobacco
Build an estate through death benefit
Increase comfort level in transferring assets
Surrender value provides flexibility and control
The information presented is hypothetical and not
intended to project investment results.
Illustration is not complete unless all pages are
included.
Plus a living benefit with chronic illness
accelerated benefit rider!
15
Retirement Funding

• Death benefit protection during working years
• Cash value for income stream during retirement
  years
• Non-qualified means no IRS funding limitations

Tax consequences may result if withdrawals
exceed premiums paid into the policy. Policy
loans from life insurance policies generally are
not subject to income tax, provided the contract
is not a Modified Endowment Contract, as defined
by Section 7702 of the Internal Revenue Code. A
policy loan or withdrawal from a life insurance
policy that is a Modified Endowment Contract is
taxable upon receipt. Policy loans and
withdrawals will reduce cash value and death
benefit. Policy loans are subject to interest
charges. Tax advantages may be subject to
modified endowment contract rules, which may
cause taxes and penalties. Tax advantages may be
subject to the Alternative Minimum Tax, which may
cause taxes and penalties. North American does
not give legal or tax advice. Your clients should
always consult a legal or tax advisor.
16
Retirement Funding
45 male, Preferred Non-Tobacco
Death benefit protection during working years
Overcome the Where did my money go objection.
The information presented is hypothetical and not
intended to project investment results.
Illustration is not complete unless all pages are
included.
Cash value for income stream via withdrawals,
loans, or annuity
17
Sales Support800-800-3656 ext.
10411salessupport_at_nacolah.com
18
Disclosures

• Custom Accumulator III is issued on policy form
  series LS165B Chronic Illness Accelerated
  Benefit Rider (Accelerated Benefit Rider for
  Continuous Confinement in MN) is issued on form
  series LR450A by North American Company for Life
  and Health Insurance Executive Office, Chicago,
  IL, 60607. Products, features, issue ages or
  riders may not be available in all jurisdictions.
  Limitations or restrictions may apply.