BC LIFE & HEALTH LifeBenefits

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BC LIFE HEALTHLifeBenefits

• FINAL EXPENSE
• WHOLE LIFE INSURANCE

October 2000
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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Why purchase final expense insurance?
• According to the National Funeral Directors
  Association, the average funeral costs 6,750
• Social Security death benefit is 255 (if you
  qualify)

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Available for Ages 45 - 80
• Rates based upon age at application
• Rates based upon sex of applicant
• Simplified Issue
• 4 medical questions
• 3,000 to 25,000 Face Value
• Choose one of three pre-calculated benefits
• Select own level of benefit in thousand dollar
  increments

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Immediate Benefit
• No waiting period to be eligible to receive the
  full face value at point of claim
• Guarantee Noncancelable
• Benefits cannot change
• Rates cannot change
• Guaranteed Satisfaction
• 30-day free look policy

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Incontestability
• Cannot contest, except for non-payment of
  premium, after policy is in force for 2 years
• Suicide
• If Insured commits suicide within 2 years from
  policy effective date, benefit will be equal to
  the total premiums paid less any debt owed

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Policy Loans
• Loans are available after the policy has been in
  force at least 12 months and has a net cash value
• Policy is the security for the loan
  The Insured will assign policy
  to BC Life Health
• Interest rate is 8 compounded yearly
  Interest is due on the policy
  anniversary

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Automatic Premium Loan
• Automatically in place unless otherwise indicated
  on the application
• Should premium not be paid within the grace
  period, a policy loan in the amount of the
  premium will be made automatically
• Policy must have enough loan value
• Premium loan subject to same provisions and
  interest rate as a policy loan

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Automatic Premium Loan
• May be discontinued with written request
• Premiums may be paid either monthly, quarterly,
  semi-annually or annually
• There is a 31 day grace period for premium payment

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• A policy that lapsed (and was not surrendered for
  cash value) may be reinstated within 5 years of
  the lapse
• Must be able to pass underwriting
• Must pay past due premium with 6 interest
• Must pay or reinstate debt with compound interest

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Beneficiary is the payee at
• the death of the Insured
• Beneficiary selection is revocable (may be
  changed) unless otherwise stated
• Change must be made in writing and will be
  effective as of the signature date
• Payment of benefit
• lt 5000 paid in one lump sum
• gt 5000 paid in one lump sum or optional method
  of payment

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Optional Methods of Policy Settlement
• Option 1 - Policy proceeds held as principal and
  interest paid to payee
• Option 2 - Policy proceeds of a specified amount
  paid in equal installments to payee
• Option 3 - Policy proceeds paid in equal
  installments for a specified period to payee
• Option 4 - Life Annuity - monthly installments
  paid for life of payee

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Optional methods of policy settlement - contd
• Option 5 - Life Annuity with Period Certain -
  monthly installments paid for life of payee.
  Should payee die prior to period certain,
  installments will be paid to payees estate
• Option 6 - Joint Life and Survivorship Annuity -
  monthly installments paid for life of two payees.
  At death of one payee, survivor continues to
  receive installments

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Nonforfeiture Options
• Option 1 - Surrender for cash.
• Option 2 - Reduced paid up life insurance
• Policy is continued in force as Reduced Paid-Up
  Life Insurance at a reduced face amount. Amount
  is computed so that its net single premium on the
  due date of the unpaid premium equals the net
  cash value

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Sales Requirements
• Life Insurance Buyers Guide must be presented at
  point of sale
• If replacing coverage, Notice Regarding
  Replacement must be completed and included with
  the application for coverage
• Must collect full modal premium (include the 30
  monthly premium when calculating rates)

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LifeBenefits
FINAL EXPENSE WHOLE LIFE INSURANCE

• Agent Commissions
• 85 First Year
• 5 Renewal Year

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Thank you for your interest in
BC LIFE HEALTHLifeBenefits

• FINAL EXPENSE WHOLE LIFE INSURANCE

For further information contact your Regional
Sales Manager or call Senior Sales Support
at 888-209-7839