fg life-gold universal life overview
DESCRIPTION
Overview of a newly-released fixed indexed life insurance product released by Fidelity & Guaranty Life that links account values to growth in a gold index.TRANSCRIPT
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Fidelity & Guaranty Life IntroducesFG Life-Gold!
FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473
Fixed Indexed Universal Life Insurance
Agenda
1. Why The Gold Strategy
2. Uses and Benefits of FIUL
3. Markets for FIUL
4. FG Life-Gold
5. Why Fidelity & Guaranty Life
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Uses and benefits of FIUL
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Uses and Benefits of FIUL
Wealth Transfer(Income Tax Free Death Benefit)
Accumulation(Tax Deferred Cash Accumulation)
Protection(Living Benefits)
Income(Tax Free Income)
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Benefits of FIUL
• Wealth Transfer
• Accumulation
• Income
• Protection
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Markets for FIUL
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Markets for FIUL
Some markets for FIUL are…
-Personal Market
- For increased cash value control and enhanced policy accumulation potential, FIUL will allow people to manage the policy to meet changing needs and market conditions
-Business Market
- FIUL provides strong cash values that may be accessed at retirement or can be used for reserve or emergency funds for business purposes. Well suited for key man, deferred compensation or executive bonus plans
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The Ideal Client Profile
When selling Fixed Indexed Universal Life it is important to understand who fits the profile as an ideal client. The ideal client is someone who…
-Needs affordable death benefit protection with strong cash value accumulation potential
-Wants built-in product flexibility to better accommodate changing financial conditions
-Likes the opportunity for higher potential gains tied to index linked returns
-Doesn’t like the volatility and risks associated with index funds
-Wants downside protection in years of negative returns
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Why the Gold Strategy
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Scarcity of Gold
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Value of the US Dollar
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ETF’s Gold Holdings
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Source: LBMA, Thomson Reuters GFMS
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Report published 3Q2011
Gold the last 10 years
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Recap
Two reasons to use the gold option
1)Demand from emerging markets
2)Gold is an inflation hedge
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FG Life-Gold
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FG Life-Gold
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(Formerly OMLife-Elite) (Formerly OMLife-Choice)
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Index Features:FG Life-Gold
FG Life-Gold
Interest Crediting Options*
Gold Option
S&P 500 Option
Fixed Account Option
Any combination of all interest crediting options
Crediting Methodology Annual Point-to-Point Reset
Participation Rate 100% Guaranteed (in the indexing formula)
Cap Currently 13% on Gold/ 12% on S&P 500
Guaranteed Minimum Interest Rate
.25%
Fixed Account Currently 4.5%
17 *Subject to state availability. Certain restrictions may apply.12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.17
Product Features:FG Life-Gold
FG Life-Gold
Minimum Face Amount $100,000
Issue Ages 0-85 (age last birthday)
Surrender Charge Period 15 years
Underwriting Classes Preferred Nontobacco, Standard Nontobacco, Preferred Tobacco, Standard Tobacco
Key Features(May not be available in all states)
Surrender Charge Waiver on Excess Premium
Over Loan Protection
Primary Insured Level Term
Ultimate Protection Rider
Unique Living Benefit Riders
Loan Options(May not be available in all states)
Variable Loan Option
• Max rate of 5.5%
Fixed Loan Option
• Years 1-10 – 2% net
• Years 10+ – 0% net cost
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Determining Maximum Illustrated Rates
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Past product performance does not guarantee future results.
Account Allocation
Dates
IRR for the S&P 500 Interest
Crediting Option
(12% cap)
IRR for the Gold
Interest Crediting
Option(13% cap)
Jan 15th 7.18% 10.14%
Feb 15th 7.66% 11.34%
Mar 15th 7.50% 11.22%
Apr15th 7.45% 10.47%
May 15th 7.72% 10.16%
Jun 15th 7.60% 11.44%
Jul 15th 7.56% 9.25%
Aug 15th 7.47% 11.82%
Sep 15th 7.73% 11.79%
Oct 15th 7.55% 12.62%
Nov 15th 7.07% 10.95%
Dec 15th 7.18% 11.69%
Maximum Illustrated
Rate (Average
of 12 IRRs)
7.47% 11.07%
What was the look-back period used in determining the maximum illustrated rates?Fidelity & Guaranty Life used a 25 year look-back period for the S&P 500 option and a 10 year look-back period for the Gold Blend Option ending with the December 15, 2011 account allocation anniversary.
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Current Illustrative Interest Rates• 11.07% on Gold Interest Crediting Option (100% Par/13% Cap)
• 7.47% on S&P 500 Interest Crediting Option (100% Par/12% Cap)
• 4.5% on Fixed Account Option
• Option to allocate among all interest crediting options
Minimum Guaranteed Interest Rate – .25%
• Provides upside gain in years of negative index returns
Current Illustrative Rates
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Dare to Compare
ScenarioInitial Death
Benefit
Cash Value at Age 65
Max Annual Policy Loan
Cash Value at age 65
Max Annual Policy Loan
Age 55, PNT $183,543 $163,737 $35,103 $149,317 $26,249
Age 50, PNT $217,401 $352,885 $76,800 $305,886 $54,731
Age 45, PNT $260,550 $692,216 $151,350 $563,724 $101,609
Age 40, PNT $322,460 $1,288,811 $282,225 $980,752 $177,251
FG Life-Gold: In this hypothetical scenario we took a Male client with a minimum non-MEC face amount
assuming $12,000 premium paid per year paid until age 65, death benefit option B until age 65 then death benefit option A thereafter, maximum variable loans (variable loan rate
4.19%) age 66-100, $10,000, cash value at age 120.
100% Gold Option 50% Gold Option / 50% S&P Option
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Past product performance does not guarantee future results.
Living Benefits
• Accelerated Benefit for Critical Illness – Up to 100% of the death benefit of the insured if the insured suffers a critical condition (heart attack, stroke, cancer etc)*
• Accelerated Benefit for Terminal Illness – Up to 100% of the death benefit if the insured is diagnosed with a terminal illness and has an expected life expectancy of less than 24 months*
• Over Loan Protection Rider – Prevents the life insurance contract from lapsing as a result of outstanding loans
• Waiver of Monthly Deduction Rider – Keeps policy in force by waiving the monthly charges should the insured become totally disabled for longer than 6 months
*Not to exceed $500,000 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.22
Recap
The FG Life-Gold Advantage!
• Gold crediting option
• Living benefit riders
• Maximum guaranteed variable loan rate of 5.5%
• A .25% minimum guaranteed interest rate in down years
• Competitive target premiums
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Why Fidelity & Guaranty Life
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Fidelity & Guaranty Life Advantage
Did You Know That … Fidelity & Guaranty Life:
• Has 2 of the top selling Fixed Indexed Universal Life products in the marketplace with FG Life-Choice, FG Life-Elite, and NOW the FG Life-Gold!!
• Has an average underwriting time service of 7-10 days on In Good Order life applications!!
• Has a dedicated Case Management Unit that works directly with producers to help get cases through the system!!
• Has a Platinum Life Case Unit to handle large premium cases and very competitive Foreign National Underwriting Guidelines!!
• Pays commissions weekly and will advance up to $3,500 per case on approved producers!!
• $80,000 of life tap to qualify for Power Agent Program!!
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Power Agent
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Power Agent
Year Qualification Level
Credit Amount
2009 $120,000 $2,000
2010 $120,000 $2,000
2011 $90,000 $2,000
2012 $80,000 TBD*
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*2012 amount to be determined in 2013
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The POWER of Compounding
Power Agent Program
Total Contribution = $12,000
$2,000
$2,000
$2,000
$2,000
$2,000
$4,000 $6,000
Qualifying Year 1
2009
Qualifying Year 2
2010
Qualifying Year 3
2011
$2,000
FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC
2009
2010
2011
Total
$2,000
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Timeline
- September 26, 2012
- National IMO Call
- Kits Mailed To Key IMO’s and Power Agents
- Gold Teaser Video pt. 2 (pt. 1 launched last Friday)
- Social Media Campaign Begins
- September 28, 2012
- Market Materials Available On Saleslink
- Launch Date Announcement on Producersweb.com and Email Blast
- September 29, 2012
- Illustration Software Update Available
- October 2, 2012
- Product Launches
- October 2, 2012
- Go For The Gold Promotion Begins
- TBD - IMO/Agent Training Webinars
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Contact Information
Thank You – if you have any questions please contact either
Dennis Sudac: [email protected]; 214-783-3914
Or
Ryan Parker: [email protected]; 410-895-0122
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Disclosures
Policies issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD.
Subject to state availability. Certain restrictions may apply.
Fidelity & Guaranty Life is the marketing name for Fidelity & Guaranty Life Insurance Company in all states except New York and, in New York only, Fidelity & Guaranty Life Insurance Company of New York. Fidelity & Guaranty Life Insurance Company, incorporated in 1959, and Fidelity & Guaranty Life Insurance Company of New York, incorporated in 1962, have a solid commitment to serving the individuals Fidelity & Guaranty Life knows best – middle market consumers seeking the safety, protection, accumulation and income features of secure life insurance and annuity products. Fidelity & Guaranty Life will continue to offer its series of focused life insurance and annuity products through its network of independent marketing organizations Fidelity & Guaranty Life Insurance Company is a life insurance company organized under the laws of the State of Maryland. Fidelity & Guaranty Life Insurance Company is licensed in the District of Columbia and all states of the United States except New York. Fidelity & Guaranty Life Insurance Company of New York, a wholly-owned subsidiary of Fidelity & Guaranty Life Insurance Company, is a life insurance company organized under the laws of the State of New York and is licensed only in New York. Fidelity & Guaranty Life is not authorized to transact business outside of the United States, and this web site is not intended as a solicitation in any jurisdiction in which Fidelity & Guaranty Life is not respectively authorized to transact business. Each Fidelity & Guaranty Life company is solely responsible for its product guarantees and commitments.
Optional provisions and riders may have limitations, restrictions and additional charges.
This document is not a legal contract. For the exact terms and conditions, please refer to the life insurance policy.
Information provided regarding tax or estate planning should not be considered tax or legal advice. Clients should consult own tax professional or attorney regarding their unique situation.
“S&P® ” is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity & Guaranty Life Insurance Company. Standard & Poor’s does not sponsor, endorse, promote, or make any representation regarding the advisability of purchasing the contract.
Indexed interest rates are subject to a cap. Caps are subject to change at the discretion of Fidelity & Guaranty Life Insurance Company.
Issuance of the life insurance policy depends on answers to health questions in the application.
Surrender charges may apply to partial and full surrenders. Surrenders may be taxable and may be subject to penalties prior to age 59½.
Surrenders and loans will reduce available death benefit. Surrenders beyond basis may be taxable income. Excessive and unpaid loans will reduce policy value and may cause the policy to lapse.
The Power Agent Program is a deferred bonus compensation plan for eligible appointed agents of Fidelity & Guaranty Life Insurance Company. Terms are stated in the Power Agent plan document, which Fidelity & Guaranty Life may amend, limit or terminate at any time.
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