Life Insurance with
Living Benefits
Products issued by
National Life Insurance Company | Life Insurance of the Southwest
National Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affiliates. Each company of NL Group is solely responsible for its own
financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York
TC80406(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
What is it?
Living benefits
Life Insurance You Don’t
Have To Die To Use
TC80407(0614)3
For Agent Use Only – Not For Use With The Public
Statistics Don’t Lie
Living Benefits
Every 29 seconds
someone suffers a
coronary event1
Every 45 seconds
someone will have a
stroke1
People who reach age
60 have a 40% change
of entering a nursing
home2
1.
2.
American Heart Association, American Stroke Association, Heart Disease and
Stroke Statistics, 2012 update
Medicare, US Dept. of Health and Human Services, 2012
What are the chances of experiencing one of these events?
TC80408(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With Accelerated
Benefits Riders
Leverage the power of
ABRs in the event of a qualifying…
Terminal
Illness
Chronic
Illness
Critical
Illness
Accelerated Benefit Riders are optional and may not be available in all states or on all products. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit
otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs.
TC80409(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Product
Availability
Things to Consider About
Accelerated Benefits Riders
State
Availability
Table Ratings
ABR’s are available at
issue at no additional cost!
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.
TC80409(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Accelerated Benefits Riders
Available on National Life and LSW Policies
Terminal Illness
Chronic Illness
• Death in two years*
• Lump-sum distribution (discounted from death
benefit)
• Funds can be used at your discretion
• Unable to perform two of six Activities of Daily
Living or cognitive impairment*
• Waiting period*
Critical Illness*
•
•
•
•
•
•
•
Heart attack
Stroke
Cancer
End state renal failure
Major organ transplant
ALS (Lou Gehrig’s disease)
Blindness
*state specials apply – check your policy form
for state specific information.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80411(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Terminal Illness
• Death in two years
• Lump-sum distribution (discounted
from death benefit)
• Funds can be used at your
discretion
Life Insurance With
Accelerated Benefit Riders
• Insured must be diagnosed by a
physician with a terminal illness.
Generally the condition must be
expected to result in death within 24
months, but this may vary slightly by
state.
• The client can accelerate all or a
portion of the discounted death benefit
and the benefit is received in a lump
sum
• Benefits can be used for anything
• Maximum lifetime benefit is $1,500,000
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80412(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With
Accelerated Benefit Riders
Example of Terminal Illness Benefit
Assumptions:
•Male Age 45, Standard N/S; N/T
•$500,000 Death Benefit
•$9,174 Premium
•FlexLife; Basic Strategy
– 4.75%
– 100% P-tP Cap
– Focus 8.10%
– Benefit Summary Age 65
$431,629 at Age 65
Based on nonguaranteed assumptions. Actual values may be higher or lower
than shown.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80413(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Chronic Illness
• Unable to perform two of six
Activities of Daily Living or
cognitive impairment
• Waiting period*
Life Insurance With
Accelerated Benefit Riders
• A Licensed Health Care Practitioner
must certify that within the last 12
months, the insured, for a period of 90
consecutive days, could not perform
two out of six Activities of Daily Living
(ADLs);
• Or required substantial supervision to
protect oneself from threats to health
and safety due to Severe Cognitive
impairment.
• Maximum lifetime benefit is $1,500,000
*state specials apply – check your policy form for state
specific information.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80414(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With
Accelerated Benefit Riders
Example of Chronic Illness Benefit
Assumptions
•Male Age 45, Standard N/S; N/T
•$500,000 Death Benefit
•$9,174 Premium
•FlexLife; Basic Strategy
– 4.75%
– 100% P-tP Cap
– Focus 8.10%
Monthly
Basis
$7,338
Lump Sum
Benefit
$366,922
Based on nonguaranteed assumptions. Actual values may be higher or lower than shown.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80415(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Critical Illness
Qualifying Conditions*
•
•
•
•
•
•
•
Heart attack
Stroke
Cancer
End state renal failure
Major organ transplant
ALS (Lou Gehrig’s disease)
Blindness
Life Insurance With
Accelerated Benefit Riders
• To qualify for Critical Illness, the
insured must have or have had one of
the listed conditions
• Waiting period*:
– 90 Days for NL
– 30 Days for LSW
• Maximum lifetime benefit is $1,000,000
*state specials apply – check your policy form for state
specific information.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80416(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With
Accelerated Benefit Riders
Example of Critical Illness Benefit
Assumptions:
•Male Age 45, Standard N/S; N/T
•$500,000 Death Benefit
•$9,174 Premium
•FlexLife; Basic Strategy
– 4.75%
– 100% P-tP Cap
– Focus 8.10%
$409,469
Category 4 Life Threatening
Based on nonguaranteed assumptions. Actual values may be higher or lower than
shown.
Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s
eligibility for public assistance programs. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client as a need for life
insurance.
TC80417(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
What is it?
Life Insurance With The
Lifetime Income Benefit Rider
Why should
you care?
TC80418(0614)3
For Agent Use Only – Not For Use With The Public
How does
it work?
Living Benefits
Life Insurance With The
Lifetime Income Benefit Rider
Tax-Free Income For Life!
• Benefit payments will continue as
fixed Net Cost loans.
• Because policy loans are tax-free,
once qualifications are met, LIBR
payments are guaranteed to continue
tax-free for life.
The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to the insured’s attained age being between
60 and 85, and that the policy has been inforce at least 10 years (15 years for LSW SecurePlus Provider). Insufficient policy values or outstanding policy loans may also restrict
exercising the rider. Exercising the rider and receiving an income benefit will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their
benefits. Except in the case of a Modified Endowment Contract (MEC), withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate
taxable event, but substantial tax ramifications could result upon contract lapse or surrender. All benefit payments will be taxable on MECs.
TC80420(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With The
Lifetime Income Benefit Rider
How It Works
1Assumes
Non-MEC Policy
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.
TC80421(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Level Income Option
For Agent Use Only – Not For Use With The Public
Living Benefits
Increasing Income Option
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With The
Lifetime Income Benefit Rider
No policy charge until
rider is elected.
Once benefit
payments begin –
guaranteed for life.
No additional premium
payments allowed
once elected.
No policy loans or
withdrawals allowed
once elected.
Available on both
death benefit options A
and B
Income payment
modes available:
• A, S, Q, M
TC80422(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
Life Insurance With The
Lifetime Income Benefit Rider
• Must be between ages 60 to 85.
• Minimum waiting period:
– 10 policy years.
– 15 for LSW SecurePlus Provider.
• Must meet maximum death benefit ratio.
• Modal income payment must be ≥ $100.
• Outstanding policy loans must be repaid in full.
• Policy cannot be owned by a qualified pension or profit sharing
plan at time of income election.
• Exercising the rider may terminate other riders, or reduce their
benefits.
TC80423(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
No rider charge
deducted
Life Insurance With The
Lifetime Income Benefit Rider
• Premium payments
• Increases / Decreases
• Loans and Withdrawals
Guaranteed if:
• No face amount increases
• No partial withdrawals
• No loans
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance.
TC80426(0614)3
For Agent Use Only – Not For Use With The Public
Training Materials
Living Benefits
TC80428(0614)3
For Agent Use Only – Not For Use With The Public
Living Benefits
[Insert Name]
[Insert title]
[Insert phone]
[Insert email]
TC80429(0614)3
For Agent Use Only – Not For Use With The Public