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Hybrid Life Training and Certification

Fidelity Life Association - 2014

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Here’s how the Hybrid Life process worksA. The insured qualifies for coverage by completing the initial

underwriting process, which includes answering some questions about their health and lifestyle history. In most cases, they should receive coverage within 24 to 48 hours of applying, if approved.

B. The policy is initially a blend of two types of coverage. A portion is level premium term life insurance – this pays a death benefit for any cause of death. Another portion of the coverage is an accidental death benefit in the case of accidental death.

C. After the policy is issued & paid, a paramedical exam is ordered for the client.

D. Based on the results of the exam, Fidelity may adjust the blend of coverage initially provided (e.g. increase the portion of the policy that pays for all causes of death), at no additional cost.

E. Insured does have up to 6 months to complete paramed exam to allow for scheduling convenience and/or a more favorable blend of benefits – lose weight, lower cholesterol, if desired.

Hybrid Process

Hybrid Product Issue Limits

Issue Ages by Term Period

Term Period Non-Nicotine Nicotine

10-Year 18 - 65 18 - 65

15-Year 18 - 65 18 - 65

20-Year 18 - 60 18 - 60

30-Year 18 – 50* 18 – 45**

* Issue limits for Non-Nicotine user 30-yr term, Age 50: $50,000 to $900,000;**Issue limits for Nicotine user 30-yr term, Ages 18-44: $50,000 to $690,000; Age 45: $50,000 to $640,000

Issue Limits

Issue Age Minimum Maximum18 - 65 $50,000 $1,000,000

Hybrid Underwriting – Non Medical

Non Medical Underwriting Approval for a policy depends upon answers to health questions on the

application and results from database sources -MIB, MVR and pharmacy records Phone interviews are required for applicants 56+ and initiated only if needed for

all others

Does your client qualify for Non-Medical Hybrid Life?1. Client must be a U.S. citizen or have a permanent resident status (a

green card) and have a valid Social Security Number.2. Must live and work in the United States.3. If older than 55 years, must have seen his/her personal physician within

the past 5 years.

Non Medical Premium Classes Tier 1 – Equivalent to the premium charged for the Preferred, medically

underwritten premium class assuming 100% all cause coverage

Tier 2 – Equivalent to the premium charged for the Standard medically underwritten premium class assuming 100% all cause coverage

Tier 3 – Equivalent to the premium charged for the Table D medically underwritten premium class assuming 100% all cause coverage

Hybrid Underwriting – Initial Non Medical Tier Criteria (Examples)

Hybrid Underwriting Guidelines –Medical (Examples)

Medical Premium Classes Preferred Preferred Nicotine Standard Standard Nicotine Substandard Ratings Ratings through Table H are allowed. Flat Extra’s up to $7.50

Hybrid Life Example: 35 yr. old male, 20 yr. term, $500,000

Hybrid Life Example: Joe Client- 35 yr. old male, 20 yr. term, $500,000

Monthly (Non-Nicotine) underwritten premium example scenarios for Joe:Tier 1 / Preferred = $38 Tier 2 / Standard = $47

Joe is quoted Tier 1. App is underwritten and approved Non-Medically at Tier 1. His initial coverage is a split 30/70 all-cause/adb and cost is $38/month. Joe completes his paramed:Scenario #1: Joe is medically underwritten and approved Preferred, coverage increases to 100% all cause, cost remains at $38/monthScenario #2: Joe is medically underwritten and approved Standard, coverage remains split 30/70 all-cause/adb, cost remains at $38/monthOR Joe can opt to pay increased premium at Standard for 100% all-cause, cost goes to $47/monthNOTE: If Joe is deemed “uninsurable” by results of medical underwriting , yet was truthful on application, he can keep the original policy as issued with blend at original premium.

Hybrid Sales Process

Quoting Industry engines: Compulife, ALISS (Efinancial), Ebix and iPipeline

(to be added) Rapid App – Fidelity Life’s online application system

Submission Rapid App – Fidelity Life’s online application system

Paramed Once initial blended policy is issued and paid, Fidelity Life will

order the paramed Reminders are sent by Fidelity via email/mail to customer if

paramed is not initially scheduled

Case Status/Requirements Agents should receive all status updates via email to know if any

requirements are needed Info also in Pending Business Detail on website

Hybrid Summary

Process by Stage Estimated Time per Stage

1. Take the online application………..……..………...15-30 minutes depending on Health History (Rapid App login in Agent Login)

2. Electronic app goes to the Client…………….…....Instantly upon agent sending to Client

3. Client reviews, signs and submits………….……..Once reviewed , signed and submitted automatically goes to Fidelity for processing

4. Underwriter’s receive and underwrites………..…24 to 48 hours Underwriting NON MED (Runs 3rd party data- MIB, MVR, Rx) approval is complete (can also be submitted via RDS with instantaneous underwriting)

5. When policy status shows “Paid Inforce”…….…... Commission s paid to agent next commission cycle (Fridays)

6. Fidelity changes status to Hybrid MEDICAL………..Automatically triggers Paramed order

7. Client completes the Exam and Labs………………Specimens received in Laboratory within 24 to 48 hours

8. Fidelity UW Reviews Exam and Labs……………….Within 7 to 10 Business Days after Exam is completed

9. Final Offer is Made

Key Insight: The most important point to remember before beginning is that when you explain Hybrid Life to customers, focus on the following:

1. The initial coverage is a blend of “all cause” insurance (life insurance that pays for all causes of death) and “accidental death benefit” insurance (life insurance that pays only for accidental death).

2. Hybrid Life can get initial coverage approved and in place in as little as 24-48 hours …upon which completing a medical exam (within the first 6 months) allows most customers to increase the “all cause” portion of their coverage and reduce the accidental death benefit portion proportionally. Don’t begin the product explanation until the customer has committed to move forward based on the face amount and premium quoted. Get their “buy-in” first. Don’t over-explain the mechanics of the product! Customers do not perceive Hybrid Life as difficult or unusual – as long as the agent keeps the explanation concise and focuses on the two key points listed above.

Hybrid Sales Process

Here is a script that illustrates how to apply the key points. This picks up from the time the agent has prequalified the customer.

Agent: Well Bob, based on your health and lifestyle profile that we have discussed it looks like there are a few companies that are competitive. Fidelity Life,which is an A rated company that has been in business for over 100 years is coming back at $X.XX per month for $Y,YYY,YYY in coverage. How does that sound?

Customer: That sounds reasonable and is in line with what I have seen elsewhere.

Agent: Great. In order to get you approved I need to complete their quick application and at the end I will have you verify and electronically sign, confirming that your information is correct. The approval process will occur within 24 to 48 hours, so we can get coverage in place right away, which is a tremendous advantage over other carriers, who typically take 30-90 days. Also, all the insurance companies we work with require a valid checking or savings account or credit card. You have one of those – correct?

Hybrid Sales Process

{Log in to Rapid App and begin completing the application online.}

Agent: Once you are approved you will immediately have $X,XXX,XXX of coverage. $YYY,YYY pays for all causes of death. $ZZZ,ZZZ pays for accidental death. An examiner will be contacting you to follow up and schedule your medical exam. I will also give you the phone number to the New Business department at Fidelity Life, so that you can call them once you receive your policy and they also can help you schedule your free medical exam. This is a great benefit since they will schedule this for a time that is convenient for you.

Customer: What happens if I do not take the medical exam?

Agent: Completing the medical exam is not mandatory. If you choose not to take it, your initial blend of coverage will remain in-force for the term of the policy. However, we encourage you to take the medical exam, as it will allow you the chance to increase the portion of your coverage that pays for all causes of death— with no increase in premium.

Hybrid Sales Process

Hybrid Summary

Agent: Again, you will be covered in the meantime for the full death benefit amount, of which $ZZZ,ZZZ pays for accidental death. Once your exam results are reviewed by the underwriter and if everything comes back as expected, then the $ZZZ,ZZZ will become payable for all causes of death. The company will send you an update to your policy that notes this change.

Customer: What happens if my medical exam results don’t come back as expected?

Agent: If your results come back different than expected you will be contacted and given your options. The great thing about Fidelity Life is that regardless of how your results come back, nothing can ever happen to the initial blend of policy benefits. This is a great advantage in the rare case an adverse health issue that you did not know about is identified in the lab results. Other insurance companies often decline you for coverage if this happens. This is not the case with Fidelity Life.

Agent: Are there any questions you have?.....Thank you. Have a great day.

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Typical Term Insurance Temporary coverage may be

available, but benefits paid only upon favorable full medical underwriting is completed

Policy issued/inforce in 2-3 months after lengthy underwriting process…then commissions are finally paid.

Coverage can be denied after medical exam results are known – temporary coverage is withdrawn

When coverage is approved based on medical results, full coverage finally begins – usually in 2-3 months

Hybrid Life Coverage is immediate and

benefits will be paid on inforce policies

Policy issued/inforce in as little as 24-48 hrs after Rapid Decision underwriting … and commissions are paid!

Coverage can never be terminated once issued, regardless of medical exam results, provided all questions are answered honestly

If medical exam is done within 6 months and confirms the insured is in good health, the blended coverage amount may favorably change, allowing greater all cause coverage

Hybrid Advantage vs. Traditional Fully Underwritten Term

Hybrid Summary

Hybrid Summary of Benefits Competitively priced high-face amount coverage: $50,000 to

$1,000,000

Blended coverage available with a convenient 24-48 hour approval process

Ability for the insured to defer the medical exam for up to six months

Upon completions of medical exam, medical underwriting results can allow for an increase the “all cause” portion (up to 100%)

If underwriting results are unfavorable, initial coverage will remain in force

Choice to not undergo medical underwriting, and keep the initial blended policy

THE QUICKEST WAY TO OBTAIN HIGH FACE AMOUNT, LOW COST TERM LIFE INSURANCE

THE MOST INNOVATIVE TERM LIFE INSURANCE PRODUCT IN THE INDUSTRY

GREATER PLACEMENT, GREATER PERSISTENCY, GREATER PROFITABILITY