Choice.
F l e x i b i l i t y.
Guaranteed Income.
PLAG.9777 (08.10)
Agent/Broker
Dealer
Use
Only.
Not
Use With
Consumers.
ForFor
Agent/Broker
Dealer
Use
Only.
Do Do
Not
Use
Consumers
For Agent/Broker
Dealer
Use
Only.
DoWith
Not Use
With Consumers
Immediate, Recurring and
Future Needs
• Immediate Income Needs
 Final Burial and Probate Expenses
 Mortgage and Car Loan
 Credit Card Debt
• Recurring Needs




Utilities and Food
Childcare
Education
Healthcare
• Future Income Needs
 Survivor’s Income Replacement Need
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Did You Know???
Base = all respondents,
296. Poll conducted Sept.
10, 2008.
• Approximately three-fourths of financial
professionals surveyed believed that a life
insurance product that provides a stream of
income to beneficiaries would be beneficial
Registered Rep. ® - A
Penton Media Publication
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
* Neither Protective Life
Insurance Company nor its
representatives offer legal
or tax advice. The tax
treatment of life insurance
is subject to change. A
portion of each annual
payment will be reported as
taxable income to the
beneficiary, based on our
understanding of current
Federal income tax law.
Consumers should consult
their attorney or tax advisor
regarding their individual
situations.
Introducing the Protective
Income Provider Option
•
Income Provider Option Features:
 Guaranteed income stream for a fixed
period of 1 - 30 years*
 Additional initial lump-sum death
benefit payment also available
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Introducing the Protective
Income Provider Option
•
Income Provider Option Specifications:
 Single-life UL products, including: Centennial G II,
Centennial G II Plus, ModLife and ProClassic (available
on Secure-T in 4th quarter 2010)
 Guaranteed equal income stream payments:
- Monthly
- Annually,
- Annually on a specific day
(e.g. birthday, holiday)
 Available at no extra cost & only at policy issue
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Introducing the Protective
Income Provider Option
•
Income Provider Option Specifications:
 Only the Policy Owner is allowed to
make changes to the payment schedule
 Automatic and/or voluntary policy
changes may result in adjustments to
the initial lump sum and income stream
payments
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Introducing the Protective
Income Provider Option
•
Income Provider Option Specifications:
 If the Income Provider Option is
selected, all or a portion of the death
benefit is paid out in the form of income
 All policy rates, values, and
underwriting requirements will be based
on a discounted amount
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
How does the Income Provider
Option Work?
•
Income Provider Option Calculation Example:
 At issue:
-
Owner specifies $100,000 initial lump sum
+ $100,000 annual income payments to
beneficiaries for 10 years
-
10-year Discount Factor = 0.88
- Initial Face Amount* =
{(100,000 x 10) x (0.88)} + 100,000 = $980,000
* The initial face amount will be shown on the
illustration and should be entered as
the policy face amount on the UL application
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Income Provider Option
ELI Illustrations
• ELI is the easiest and most accurate way to
calculate the discounted face amounts of the
Income Provider Option
• ELI will also calculate the portion of the annual
payouts that will be reported as taxable income.
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Income Provider Option
ELI Illustrations
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
ELI Output Example
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Why Choose
Income Provider Option?
• Allows owner to provide clear and specific
directions on how funds are to be
distributed.
• New concept that provides a more
complete solution to expressed client needs
• Opportunity for substantial premium
savings
• Perfect for legacy planning, income
replacement, business planning
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
IPO Competitive Advantages
• Very few carriers offering this unique option
• “Simple” concept for both agent & client
• Helps “Differentiate” the UL NLG sale
• Can be an excellent “Alternative” to
providing scheduled income to a beneficiary
without the added cost of trust documents
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Case Study #1
Meet the Carter Family
•
Profile:


Michael Carter is an upscale restaurant manager,
age 42, risk class: Preferred Non Tobacco
Michael is married and has two children
• Chief Concerns upon Michael’s Death:


Household budget mismanagement
The effect of lost income on the surviving family
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Case Study #1
The Carter Family
• Proposed Solution:

Michael purchases a Centennial G II and adds the
Income Provider Option with a $250,000 initial lumpsum payment and 20-year benefit payment paying
$25,000 annually
• Potential Cost Savings:
Male 42, Preferred Non-Tobacco, $750k Insurance Need
Centennial G II
Income Provider
Centennial G II
Lump Sum
Total DB Payment
$750,000
$750,000
NLG Premium
$3,816
$4,715
Annual Savings
$899/year
> 19%
This hypothetical example is for illustration purposes only. For current information, please
use our ELI software.
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Case Study #2
Meet Ruth Thomas
• Profile:
 Ruth Thomas is a retired widow, age 60, Standard
Non-Tobacco
 Ruth has a 9-year-old granddaughter, Sadie
• Chief Concerns upon Ruth’s Death:
 Providing an annual monetary gift to Sadie for future
college needs, home purchase, and assist with
expenses involved in starting a family
 Sadie may not have the financial maturity to handle
a large lump-sum
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Case Study #2
Ruth Thomas
• Proposed Solution:
 Purchase a Centennial G II and add the Income
Provider Option with a 30-year benefit payment paying
$10,000 annually
• Potential Cost Savings:
Female 60, Standard Non-Tobacco, $300,000 Insurance Need
CG II w/
CG II
CG II
IPO
Lump Sum
Lump Sum –
Budgeted Prem
Total DB
Payment
$300,000
$300,000
$189,925
NLG
Premium
$2,822
$4,514
$2,822
Annual
Savings
$1,692/year
> 37%
This hypothetical example is for illustration purposes only. For current information, please
use our ELI software.
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Submitting Business to
Protective
•
The Pre-Determined Death Benefit Payout
Endorsement Supplemental Application (P-U-437R 8/10)
must be submitted with the UL application
•
A signed illustration is required
•
The beneficiary on the UL product application must match
the beneficiary on the supplemental application
•
With this endorsement, the death benefit payment
schedule is non-commutable after the policy owner’s death
•
The endorsement may be added to pending cases and
policies issued in the last 90 days
For Agent/Broker Dealer Use Only. Do Not Use With Consumers.
Thank you.
The lapse protection guarantees the policy death benefit only,
not the cash or surrender value. Policy transactions and
premium changes will affect the cost and length of the
protection. Actual terms and conditions contained in the UL
policy and Income Provider Option endorsement govern all
benefits provided.
The Income Provider Option endorsement (UL-E35) is
available on: Centennial G II UL, Centennial G II Plus UL,
ModLife and ProClassic UL (UL-15), and all state variations of
them, which are flexible premium universal life insurance
policies issued by Protective Life Insurance Company,
Birmingham, AL. Product features and availability may vary by
state. Consult policy for benefits, riders, limitations and
exclusions. Policy is subject to underwriting, and up to a twoyear contestable and suicide period. Benefits adjusted for
misstatements of age or sex. In Montana, unisex rates apply.
Please see the endorsement for more detailed information.
Not available in all states.
All payments and all guarantees are subject to the claims
paying ability of Protective Life Insurance Company.
PLAG.9777 (08.10) For Agent/Broker Dealer Use Only. Do Not Use With Consumers.