Lifetime Legacy

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Lifetime Legacy
Americo Financial Life and Annuity Insurance
Company

• Product Training

2
Life Insurance

• What is Life Insurance?
• Peace of Mind
• Business Tool
• Family Protection
• Retirement Tool

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Life Insurance

• Life Insurance Questions
• How much life insurance does a client need?
• What kind of life insurance should your client
  buy?
• When is the best time for your client to purchase
  life insurance?
• Which company should you represent?

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Life Insurance

• How much life insurance does a client need?
• How much of a legacy do they want to leave
  behind?
• How much debt do they want to pay off for family?
• How long do they want to subsidize the lost
  income from their death?
• What responsibilities do they have that may
  become a burden on family?

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Life Insurance

• What kind of life insurance should your client
  buy?
• Term or Permanent

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Life Insurance

• When is the best time for your client to purchase
  life insurance?
• Younger and healthier clients usually get lower
  rates.
• If you wait too long, you take the risk of not
  qualifying for any insurance.

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Life Insurance

• Which company should you represent?
• A company that offers
• Strong Ratings
• Competitive Products
• Great Service

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Agent Training Presentation Disclosures

• This presentation was designed to assist Americo
  agents in understanding
• and presenting Lifetime Legacy. Please review and
  take note of the following general disclosures

• This is a summary overview of the product. Please
  refer to the Product Agent Guide and the policy
  for specific details.
• Neither Americo Financial Life and Annuity
  Insurance Company nor any agent representing
  Americo Financial Life and Annuity Insurance
  Company is authorized to give tax or legal
  advice. Clients should consult with a qualified,
  professional legal or tax advisor regarding the
  information and concepts contained in this
  material.
• The product availability may vary by state.
  Please refer to the Product Ready for Sale Guide
  on Agent Café for specifics.
• Any materials not provided by Americo that are
  used in presenting Lifetime Legacy to clients or
  agents must be approved in writing by Americo
  prior to use.
• Lifetime Legacy is a flexible premium universal
  life insurance product. It is not a bank product,
  nor is it FDIC insured. It is not a LONG-TERM
  CARE product.

Policy Series 258
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Lifetime Legacy

• Market
• Product Positioning
• How It Works
• Features Benefits
• Simple Underwriting
• Sales Ideas
• Marketing Package

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Lifetime Legacy Market

• Senior market
• Growing market

The US Senior market (individuals above 65) is
expected to nearly double between 2000 and 2020.
Insurance Advisory Board, Generations as
Markets, January, 2003
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Lifetime Legacy Market

• From 1998 to 2052, the amount of wealth
  transferred as a result of death is projected to
  be between 41 and 136 trillion.
• Total annuity consideration is over 2 trillion
  in the last 10 years.
• Only a small percentage annuitize.
• LIMRA estimates that 80 of policyholders die
  with their annuities in the accumulation stage.

Boston College Social Welfare Research
Institute, Why the 41 trillion Wealth Transfer
Estimate is still Valid A review of Challenges
and Question., January 6, 2005
Policy Series 258
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Lifetime Legacy Market

• Annuities and other financial vehicles are being
  used to transfer wealth from one generation to
  the next.
• By design
• By accident
• May not be the most efficient transfer method

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Lifetime Legacy Market

• Client Profile
• Money in CDs, Money Market Accounts, annuities,
  cash value life insurance, etc.
• Dont need this money for income
• Worried about health emergenciesnursing home
  confinement
• Want to leave the greatest possible legacy

How many times have you asked your clients if
they have an asset that is specifically meant for
loved ones?
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Lifetime Legacy Market
Where are seniors storing their savings?
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Lifetime Legacy How it works

• The problem
• Annuities are excellent accumulation tools
• Not the best vehicles to transfer wealth to loved
  ones
• Beneficiaries pay the taxes
• May significantly reduce the amount of wealth
  transferred

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Lifetime Legacy How it works

• The solution
• Lifetime Legacy puts the control over taxes back
  in the hands of the client
• Provides the beneficiaries with a guaranteed
  death benefit generally free from income taxes
• May substantially increase the amount of wealth
  transferred

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Lifetime Legacy How it works

• Other major concerns for seniors
• Losing their retirement nest egg
• Losing their independence
• Becoming a burden on the family
• Emergencies

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Lifetime Legacy

• Common Emergency Needs for Cash
• Medical Bills
• A New Car
• Vacations
• Nursing Home Expenses

Policy Series 258
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Lifetime Legacy

• In 2002, nursing home care cost, on average, was
  roughly 50,000 per year.
• The older population (ages 65 or older) was
  numbered 35.6 million in 2003, an increase of 3.3
  million, or 10.2 since 1992.

Beyond 50 A Report to the Nation on Trends in
Health Security, AARP, May 2002 A Profile of
Older Americans 2003, Administration on Aging
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Lifetime Legacy - Highlights

• Efficient Transfer to Loved Ones
• Immediate increase in the value of the asset
• Passes generally income tax-free
• Avoid the costs delays of probate
• Guaranteed Minimum Death Benefit for Life
• No additional premiums necessary
• Assuming no loans or withdrawals
• Guaranteed Cash Surrender Value
• Guaranteed to never be less than the initial
  premium after the 5th policy year

The minimum guaranteed death benefit is equal to
the initial specified amount assuming no loans,
withdrawals or accelerations are taken. Neither
Americo Financial Life and Annuity Insurance
Company nor any agent representing Americo
Financial Life and Annuity Insurance Company is
authorized to give legal or tax advice. Consult
a qualified legal or tax advisor regarding the
information and concepts contained in this
material.
Policy Series 258
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Lifetime Legacy - Highlights

• Accelerated Benefit Rider
• Up to 80 of the Guaranteed Minimum Death Benefit
  available
• Permanent confinement to a nursing home
• Skilled, intermediate care or custodial care
• 90 Day elimination period
• Terminal Illness (12 months life expectancy)
• Lump sum available
• Quarterly or semi-annual
• Not Long Term Care Insurance

80 of the guaranteed minimum death benefit less
any policy loans
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Lifetime Legacy - Highlights

• Access to Cash
• Withdrawals after the 5th policy year
• Reduces the Guaranteed Minimum Death Benefit by a
  proportional amount
• Guarantees stay intact
• Policy loans after the 1st year
• Net 2.5 to the client

The minimum guaranteed death benefit is equal to
the initial specified amount assuming no loans,
withdrawals or accelerations are taken. Neither
Americo Financial Life and Annuity Insurance
Company nor any agent representing Americo
Financial Life and Annuity Insurance Company is
authorized to give legal or tax advice. Consult
a qualified professional legal or tax advisor
regarding the information and concepts contained
in this material.
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Lifetime Legacy - Highlights

• Target issue ages 55 to 85
• Minimum single premium 15,000
• Maximum single premium
• Premium that generates no more than 150,000 Net
  Amount at Risk
• NAR over 150,000 with Home Office approval

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Lifetime Legacy - Highlights
What is Net Amount At Risk? For underwriting
purposes, the Net Amount at Risk is the
difference between the Initial Guaranteed
Minimum Death Benefit and the Initial Single
Premium. For example Female,
Non-Nicotine, Age 65 () Initial Guaranteed
Minimum Death Benefit 115,207 (-) Initial
Single Premium 50,000 () Net Amount at
Risk (NAR) 65,207
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Lifetime Legacy - Highlights

• No commission chargeback at death or surrender
• Non-qualified money only
• Beneficiary payout options
• No restriction payout lump sum or any other
  payout option available by contract
• Monthly restriction payout monthly payments of
  death benefit over a period of no less than 60
  months

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Lifetime Legacy - Software

• No NAIC illustration required
• Quoting guarantees only
• Simple
• Comparative funding
• Repositioning from annuities tax-deferred
  accounts
• Repositioning from CDs taxable accounts
• Sales-oriented output

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Lifetime Legacy - Software
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Lifetime Legacy - Software
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Lifetime Legacy - Software
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• Policy Summary
• Benefits
• Graphical Comparison

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• Policy Summary
• Summary of assets repositioned
• What is the real value today?
• Comparison to Lifetime Legacy

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• Policy Summary
• Guaranteed values
• Run to age 100 or for 6 years
• Will show loans and withdrawals

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• Underwriting Requirements
• Case specific information
• Forms by state
• Underwriting requirements

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• Worksheet Disclosure
• Required disclosure
• Optional worksheet
• Summarizes software input
• Available at Relizon and on Agent Café

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Lifetime Legacy - Underwriting

• Specially designed
• Senior market
• Fast efficient
• Simplified Issue Standard through Table 4
• Specially designed application
• Minimal health questions
• MIB Authorization Accelerated Benefit
  Disclosure included

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Lifetime Legacy - Underwriting

• Simplified Issue
• Based on Net Amount at Risk

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Lifetime Legacy - Underwriting

• Teleunderwriting
• Point of Sale
• Toll-free number
• Complete details in Agent Guide

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Lifetime Legacy - Underwriting

• Underwriting tools
• Impairment Guide
• Combination Impairment Guide
• Both on Agent Café in Agent Guide
• Prescription Drug Guide on Agent Café
• Direct Access to your underwriter

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Lifetime Legacy - Underwriting

• Our goal Easy to do business
• Paper
• Application
• Disclosure Benefit Worksheet
• Transfer replacement forms by state
• All on Super Agent Kit Agent Café

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Lifetime Legacy

• Guarantees
• Death Benefit
• Cash Values
• High Death Benefit
• Competitive Commissions
• Accelerated Death Benefit
• Simplicity

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Lifetime Legacy

• Variety of product types
• Variety of benefits
• Lifetime Legacy takes the best of all worlds
• Death Benefit
• Guarantees
• Commissions
• Underwriting
• Competitive

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Lifetime Legacy

• Lifetime Legacy Kit
• Agent Guide
• QA for clients and agents
• Client Brochure
• Client Video
• Software
• New Agent CD Special edition

Policy Series 258
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Lifetime Legacy

• Your Clients that may
• Have reached retirement age. (ages 55 to 85).
• Already have sufficient retirement income.
• Have sufficient assets to maintain desired
  lifestyle.
• Have no need for complicated estate planning.
• Want to leave the greatest possible legacy to
  heirs.
• Be in reasonably good health.
• Have assets that are earmarked for loved ones or
  charities.

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Lifetime Legacy

• Earmarked assets are in
• Annuities
• CDs
• Money Market Accounts
• Outdated cash value life insurance policies

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Lifetime Legacy
Case 1
Example A 65 year old female, non-nicotine
purchasing the Lifetime Legacy with an initial
premium of 50,000.
Initial Guaranteed Minimum Death Benefit
1
Single Premium
115,207
50,000
For Illustrative Purposes Only
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Lifetime Legacy
Case 1
Accelerated Benefit Rider
Series 2149
Example A 65 year old female, non-nicotine
purchasing the Lifetime Legacy with an initial
premium of 50,000.
Initial Guaranteed Minimum Death Benefit
1
Accelerated Benefit Amount Available
2
Single Premium
115,207
92,166
50,000
For Illustrative Purposes Only
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Lifetime Legacy
Case 2
65 year old female, non-nicotine
50,000 In CDs
15,000 In Money Market Funds
60,000 In Mutual Funds
125,000 Total Estate at Death
Current Portfolio
115,207 Lifetime Legacy Death Benefit
15,000 In Money Market Funds
60,000 In Mutual Funds
190,207 Total Estate at Death
1
Portfolio with the 50,000 CD repositioned to
Lifetime Legacy
2
1
For Illustrative Purposes Only
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Lifetime Legacy
Case 3
Your client has two grandchildren. She would
like to leave a legacy in the amount of 100,000
to each child. She has 100,000 in an annuity
earning 5.5. She is 69 years old and is
disappointed that she may not make her goal.
100,078 Single Premium 200,000 Lifetime
Legacy
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Lifetime Legacy The Package

• Specifically designed for the senior wealth
  transfer market
• Guaranteed lifetime death benefit
• Guaranteed cash surrender values
• Easy to understand
• Competitive commissions
• Simplified underwriting
• Living Benefits
• Access to cash

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Lifetime Legacy The Package

• Quote software with comparative capabilities
• No NAIC illustration required
• Agent training and recruiting materials
• Sales ideas
• Client video and sales materials
• Personalized sales support

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Lifetime Legacy The Package

• Direct access to your underwriter
• Fax your app program
• Competitive portfolio of annuities and life
  insurance
• Agent Café
• Americo.com
• Daily EFT of commission

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Lifetime Legacy (Policy Series 258) is
underwritten by Americo Financial Life and
Annuity Insurance Company and may vary in
accordance with state laws. Some products and
benefits may not be available in all states.
Certain restrictions apply. Benefits under the
Accelerated Benefit Payment Rider (Series 2149)
may vary by state and will not be available in
all states. Certain limitations and exclusions
apply. For further information, please refer to
the policy or contract.
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LIFE PRODUCTS

• Neither Americo Financial Life and Annuity
  Insurance Company nor any agent representing
  Americo Financial Life and Annuity Insurance
  Company is authorized to give legal or tax
  advice. Please consult a qualified, professional
  legal or tax advisor regarding the information
  and concepts contained in this material.
• Products are underwritten by Americo Financial
  Life and Annuity Insurance Company, Kansas City,
  MO, and may vary in accordance with state laws.
  Some products and benefits may not be available
  in all states. Certain restrictions apply. For
  further information, please refer to the policy
  or contact Sales Support at 1-800-231-0801 x8410.