putting the entire tlc presentation together ©2008 genworth financial, inc. all rights reserved....
TRANSCRIPT
Putting the Entire TLC Presentation Together
©2008 Genworth Financial, Inc. All rights reserved.
Keith Bercun
RVP Genworth FinancialTotal Living Coverage® (TLC) universal life insurance with long term care benefits
Underwritten by
Genworth Life Insurance Company Lynchburg, VA
FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC.
46930 10/01/08
2Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Give it some leverageRecall: $100,000 set aside as “safe money,” even with growth has little
chance without some help?
Accelerated
Benefit
Rider
Extension
Of Benefit
Rider
$100,000
Premium
CLIENT PAYS BENEFITS
$654,000
Total LTC Benefit
If LTC benefits are not needed, the Specified Amount (Accelerated Benefit) would be paid as a death benefit
If monthly benefits are less than the maximum, the benefit payout period could last longer than 72 months
$218,000 Specified Amount
YEAR 1
$9,083 per month
YEAR 2
$9,083 per month
$436,000 Extension of Benefits
YEAR 3
$9,083 per month
YEAR 4
$9,083 per month
YEAR 5
$9,083 per month
YEAR 6
$9,083 per month
BENEFITS PAID MONTHLY
FOR 6 YEARSMaximum Monthly Benefit=Total LTC Benefit/ 72 Months
PLUS GAURANTEED
DEATH BENEFITS
Death Benefits would be any of
the Specified Amount NOT used for LTC
$21,800
Or if Specified Amount is exhausted,
---------
Residual Death Benefits
+
Hypothetical example assumes 4.8% crediting rate
3Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Give it some leverage …(continued)
Leverage
OPTIONAL RETURN OF PREMIUM RIDER
• 15 years no surrender charge on principal amount
• This means the decision to purchase can be reversed
$100K Initial premium
•Safe
•Retain control
•Guaranteed
•15-year ROP
$218K Death Benefit
•Leveraged 2+ times
•Income tax free DB
•Option for LTC
$648K Total Protection
•Leveraged 6+ times
•Flexible
•Tax Free LTC Benefits
CLAIMS
• We are going to pay a claim one way or another*
LEVERAGE
• More protection for the same dollars you had already allocated to the problem
*See GMBR explanation*See GMBR explanation
4Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Give it some leverage …(continued)
Guaranteed Minimum Benefit Rider(More Protection for your Client)
Guarantees coverage:– If interest rate decreases to the 3.5% guaranteed minimum or cost of insurance
charges increase for life or long term care
– And policy values will not be enough to maintain the policy to the insured’s age 100 at current rates
– If both occur, we will guarantee that the policy will not lapse if benefits are reduced to the Guaranteed Minimum Benefit shown in the policy• Further premiums are not required, as long as benefits are reduced and no loans or
withdrawals have been or are taken.
If the policy owner decides to not reduce benefits:– Additional premiums may be paid any time to keep benefits at current levels
and to keep ROP and GMBR benefits
– If additional premiums are not paid, the policy may lapse and the ROP and GMBR will terminate.
5Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Give it some leverage …(continued)
LTC Benefits Mirror Privileged Choice®
Facility Care• Nursing homes
• Assisted living facilities
• Reserves bed for up to 60 days per year during temporary absences
Home Care• Home aides
• Personal care services
• Homemaker and chore services
• Adult day care
• Hospice care
• Skilled care from nurses and physical, occupational, respiratory and speech therapists
Additional Benefits
•Monthly benefits
•Privileged Care® Coordination
•Alternative plan of care
•Caregiver training
•Supportive equipment
•International coverage
•90-day elimination period with zero-day home care
6Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
DetailsIssue Ages
– 18 - 79– Age nearest birthday
• Back dating the policy effective date is not permitted.
Maturity Age– None – policy, benefits and all riders continue after the insured reaches age 100– Interest continues to be credited to policy values– Monthly deductions cease
Interest Rate– Guaranteed to never be less than 3.5%
Underwriting both Life and LTCCouples Discount Available (even when spouse buys traditional LTCI)
Preferred/Standard No Nicotine Use – PNN/SNN
Standard Nicotine Use – SNU
Substandard
– Life
• 16 tables temporary and permanent flat extras
• May limit benefit periods
7Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Underwriting RequirementsUNDERWRITING GUIDELINES FOR INITIAL PREMIUM LIFE/LTC PRODUCT For ages 60 to79, the Genworth Life Underwriting Department will contact you regarding the requirements needed.
If Applying for Preferred Life Rates If NOT Applying for Preferred Life Rates
Face Amounts: $50,000 - $299,999 $300,000 - $600,000 $50,000 - $299,999 $300,000 - $600,000 Ages 18-44 Para- med exam
HOS & Blood Para- med exam
HOS & Blood Para- med exam
HOS & Blood Para- med exam
HOS & Blood Ages 45-59 Para-med exam
HOS & Blood Para-med exam
HOS & Blood, EKG Para-med exam
HOS & Blood Para-med exam
HOS & Blood, EKG Ages 60-69 APS
Para- med exam (#) HOS & Blood
APS Para- med exam (#)
HOS & Blood
APS APS
Ages 70-79 NO Lifetime EBR Benefit
APS Para- med exam (#)
HOS & Blood
APS Para- med exam (#)
HOS & Blood
APS APS
Ages 70-79 With Lifetime EBR Benefit
APS Face-to-Face LTC exam
HOS & Blood (#)
APS Face-to-Face LTC exam
HOS & Blood (#)
APS Face-to-Face LTC exam
APS Face-to-Face LTC exam
#: If the Proposed Insured has had an exam with his/her attending physician within the last six months, with measured height and weight, blood and urine, we will be able to consider those results in lieu of a current paramed exam. If the Proposed Insured is applying for a lifetime EBR benefit and if the Proposed Insured has had an exam with his/her attending physician within the last six months, with blood and urine, we will be able to consider those results in lieu of the HOS and blood.
If the Proposed Insured has not seen a doctor in the past 2 years, we will require: For ages 60 to 69, a para-med exam, HOS, Blood and EKG. For ages 70 to 79, a face-to-face LTC exam, HOS, Blood and EKG.
HOS – Home Office Specimen APS – Attending Physician Statement Face-to-Face LTC exam – Cognitive, Activities of Daily Living & Mobility tests (may be ordered through Portamedic or EMSI)
8Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
TLC Express QuoteGo to https://www.winflexweb.com/tlc/
9Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
TLC ExpressAppSM
Complete, sign and date the following forms
– TLC ExpressApp Ticket
– Suitability Form
– Illustration
– HIPAA Authorization
– If applicable:• Replacement Forms
• 1035 Exchange Form
Choose
Voice Signature
or
Wet Signature
Give the clients brochure 43662: What To Expect from the ExpressApp Process brochure
10Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Important InformationTotal Living Coverage universal life insurance with long term care benefits is subject to the terms, issue limitations and conditions of Policy Form No. ULPLTCIPGLI (11/05) et al. and Rider Form Nos. ULRABRIPGLI (11/05) et al., ULREBRIPGLI (11/05) et al., ULRROPIPGLI (11/05) et al. and ULRGMBRIPGLI (11/05) et al. Policy, benefits and riders may not all be available in all states. Terms and conditions may vary by state.
Genworth Life is rated A+ (Superior) by A.M. Best, the second highest of sixteen ratings. This rating represents the opinion of A.M. Best of the insurer's financial strength and ability to meet ongoing obligations to policyholders and is not an implied warranty of the company's ability to meet its financial obligations. Rating is current as of 12/31/07.
Genworth Life is a member of the Insurance Marketplace Standards Association (IMSA). Membership promotes ethical standards in the sale and service of individually-sold life insurance, annuity and long term care insurance products.
All guarantees are based on the claims-paying ability of the issuing insurance company.
Insurance and annuity products:
•Are not deposits
•Are not insured by the FDIC or any other federal government agency
•Are not guaranteed by a bank or its affiliates
•May decrease in value
11Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
Important InformationCovered long term care expenses may be paid for a longer or shorter period than the ABR and EBR periods. Expenses may be paid for a longer period if the actual expenses paid are less than the Maximum Monthly LTC Benefit. Expenses may be paid for a shorter period because some services – supportive equipment and caregiver training – do not count toward the Maximum Monthly LTC Benefit
Payments for covered care are not considered taxable income as provided in subsection 104(a)(3) of the Internal Revenue Code. Generally, life insurance death benefits are payable to the beneficiary income tax free. In addition, the law provides that cash values that accumulate within a life insurance policy grow on an income tax-deferred basis and are not subject to income tax until withdrawn from the policy or if the policy terminates.
This policy may be considered a modified endowment contract. This means that, if the client takes a policy loan or partial withdrawal from the policy value, they may have to pay income tax if the amount of the policy value is higher than the amount the client paid for the policy.
Monthly charges to pay for the long term care riders of this policy are considered by tax law to be partial withdrawals and are also income taxable. If your client is under the age of 59 1/2, he or she may be subject to an additional 10% tax, unless an allowable exception applies. But the cost of the long term care features that are withdrawn from the policy values may qualify for an income tax deduction under certain limited circumstances and up to certain limits. Your client may want to speak with a tax advisor to discuss how this impacts individual situations. However, any benefits paid for qualified long term care services are received income tax free.
12Presenting TLC FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC
The company has provided this information to help producers understand the ideas discussed. Any examples are hypothetical and are used only to help producers understand the concepts of the policy. What the company says about legal or tax matters is its understanding of current law, but the company is not offering legal or tax advice. Tax laws and IRS administrative positions may change. This material is not intended to be used by any taxpayer to avoid any IRS penalty. Your clients should consult independent tax and legal professionals for advice based on their particular circumstances.
Important Information (continued)