Transcript Document

VantagePoint
SM
Term Life Insurance
with Return of Premium
Underwritten by
First Colony Life Insurance Company
General Electric Capital Assurance Company
Lynchburg, VA
FOR PRODUCER/AGENT USE ONLY.
NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC.
306PP9466 1105
©2005 Genworth Financial, Inc. All rights reserved.
VantagePointSM Term Life Insurance
with “Return of Premium”
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• Unique Features:
– All Premiums Due and Paid Are Included in the Return of Premium1,
Except Flat Extras and Any Outstanding Loans
– Policy loans and Automatic Premium Loans2
– Available Enhanced Cash Value Rider to Accelerate Cash Value Schedule
• Other Features:
– Telemed with Voice Signature
• Digital Data Sent Directly to Home Office
• More Accurate Information Gathering
• No Time Lost for Mail Delivery
– Other Riders
• Children’s Insurance
• Waiver of Premium
• Accelerated Death Benefit, included for no additional cost
VantagePointSM Term Life Insurance with Return of Premium
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VantagePointSM Term Life Insurance
with “Return of Premium”
• Guaranteed Level Premiums for 15, 20 or 30 years
(with annually increasing premiums thereafter)
– Indeterminate ART Premiums to Age 95
• Issue Ages (issue age is age nearest birthday)
No Nicotine Use*
15-Year
20-Year
30-Year
Nicotine Use
18-65
18-60
18-50
18-60
18-55
18-45
• Face Amounts: $100,000 and Above
• Premium Bands
– $100,000 - $249,999
– $250,000 - $499,999
– $500,000 +
• 8 Underwriting Classes
• Cash Value Rider Required On All Policies
*No Nicotine Use excludes the use of nicotine and nicotine substitutes.
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VantagePointSM Term Life Insurance
with “Return of Premium”
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• Cash Value Riders Return Premiums
– Return All Rider Premiums and Table Ratings
• If The Insured Is Alive at The End of The Level Period, All Premiums Due
and Paid Are Returned To The Owner
• Excludes Flat Extras And Outstanding Loans
• Does Not Increase Death Benefit
– Intermediate Cash Values Provide Surrender Value, Loans2
• Beginning in Policy Year Five
• Loans Available, Including Automatic Premium Loans2
• Two Different Cash Value Riders
– Basic Cash Value (BCV)
• Intermediate Values Typical in The Market
– Enhanced Cash Value (ENCV)
• Larger Intermediate Values for Slightly Higher Cost
VantagePointSM Term Life Insurance with Return of Premium
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Cash Value Comparison
VantagePointSM Term Life Insurance with Return of Premium
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Sales Concept – College Planning
With escalating tuition costs, a child’s college education can become a serious financial
concern for most parents. Diligent plans to save for their children’s education may not be
fulfilled if a parent dies.
VantagePointSM Term Life Insurance with Return of Premium1 can help by providing:
• If the parent dies prematurely, a death benefit to help pay college expenses
• If the parent survives to see their child begin their education, a policy that
returns some or all of the premiums that the parent-policyowner can access to
help pay for college costs.
Tax Considerations3
• Premiums are returned income tax-free3 to the policyowner.
• Death benefits are generally received income tax free by the beneficiary.
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Sales Concept – Key Person Life Insurance
A key person’s specialized skills can be critical not only to the daily operation of a business,
but also to its very survival. The death of a key employee can cause significant financial
loss from lost sales and profits as well as the cost to recruit, hire and train a replacement.
VantagePointSM Term Life Insurance with Return of Premium1 can help by providing
funds to replace lost profits or to recruit, hire and train a replacement.
How It Works
• The business is the owner, premium payor and beneficiary of the VantagePointSM Term
Life Insurance with Return of Premium policy on the key employee’s life.
• If the key employee dies, the business receives funds to offset financial loss.
• If the key employee lives for the full level premium period, 100% of the premiums paid
will be returned to the business income tax-free. These returned premiums could be
used for business needs or the employer may choose to pay them to the key employee
as a bonus to recognize the contribution the employee has made.
Tax Considerations3
• Premiums paid by the employer on a key person life insurance policy are not income
tax deductible to the business.
• Death benefits paid are generally received income tax free.
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Sales Concept – One-Way Buy / Sell Arrangement
A business owner works hard to build a business that supports the family and provides jobs for
employees. But both their financial futures are uncertain if there is no plan for continuing the
business at the owner’s retirement or death.
One business continuation plan is the planned purchase of the business by a key employee or other
interested person – a buy-sell arrangement. The key person purchases an ownership interest in the
business while the business owner is assured of having market for the business, at a fair price, at
retirement or death. A buy-sell arrangement creates an immediate need for cash if the business
owner dies.
VantagePointSM Term Life Insurance with Return of Premium1 can help:
• If the owner dies, VantagePointSM term life insurance provides the funds needed to
complete the purchase
• If the owner retires, VantagePointSM’s term life insurance cash value can be a source of
funds to help complete the purchase of the business or for other business obligations.
How It Works
• The key person, or other purchasing party, is the owner, premium payor and beneficiary of the
VantagePointSM term life insurance policy insuring the life of the business owner.
Tax Considerations3
• Premiums paid by the key employee are not income tax deductible.
• Death benefits paid under to the policyowner are generally received income tax free.
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Important Information
VantagePointSM term life insurance is subject to the terms, issue limitations and conditions of Policy Form Nos.
TLNCVFCL05 et al. and TLNCVGE05 et al. VantagePoint SM term life insurance, its benefits and riders may not be
available in all states. No changes to rate classification, amount of insurance or additional riders after the policy is in
force. There is no additional charge for paying more frequently than annually.
1.
Return of premium is provided by a Cash Value Rider. The rider provides a benefit at the end of the initial level premium
period equal to all premiums due and paid, less any flat extra premium and outstanding loan amounts. After the fourth
policy year and before the end of the initial premium period, the rider provides cash value benefits that are less than the
amount of premiums paid.
2.
No cash value benefit is paid at the insured’s death, only the policy face amount. Policies with a return of premium
feature usually cost more than policies without this feature.
3.
Policy loans accrue interest at 8% each year. If the outstanding policy loan balance becomes larger than the rider cash
value, the policy will terminate. Outstanding policy loans reduce the death benefit. If a policy with an outstanding policy
loan balance is terminated, a taxable event may occur.
4.
The tax information in this material was written to support the promotion and marketing of the VantagePointSM term life
insurance product. The Genworth Financial companies and their representatives and distributors do not provide tax or
legal advice. We did not write this material for use by any taxpayer to avoid any Internal Revenue Service penalty. You
should ask your independent tax and legal advisors for advice based on your particular situation.
GE is a trademark of the General Electric Company and is used with permission.
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