Transcript Document

Life Insurance for Life
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Death Insurance or
Life Insurance for Life?
Most life policies should be called “death” insurance. With the
policies we offer through WRL, we can help protect a family through
life’s unpredictable changes – we call it Life Insurance for Life!
TERMINAL
ILLNESS
CRITICAL
ILLNESS
Living
Benefits
+
DEATH
BENEFIT
=
One
Solution
CHRONIC
ILLNESS
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
What Can Happen to You?
You may become Terminally or
Critically Ill
TERMINAL
ILLNESS
• Stroke
Every 40 seconds someone suffers a stroke.1
• Heart Attack
CRITICAL
ILLNESS
Every 26 seconds
someone suffers a heart attack.2
2
45% of heart attack victims are under age 45.3
Did You Know
3 out 4 people (75%) over the age of 40 will
experience a critical illness at some point in their
future. 4
American Heart Association “Heart Disease and Stroke Statistics.”, http://www.amhrt.org 2010.
Heart Association. “Heart Disease and Stroke Statistics,” LIMRA, 2007.
3. American Heart Association. “Heart Disease and Stoke Statistics.” 2007.
4. Center for Disease Control, 2009.
1.
2. American
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Continued…
• Cancer
TERMINAL
ILLNESS
Every 30 seconds a new cancer is diagnosed in the U.S.1
1 in 2 men and 1 in 3 women will be diagnosed with cancer
in their lifetime. 1
Did You Know…
•1990 to 2008, spending on cancer care soared
to more than $90 Billion from $27 Billion.2
CRITICAL
ILLNESS
•One in four cancer patients or their
families said they used up all or most of
their savings to pay for treatment. 2
•One in eight people with advanced cancer
turned down recommended care because
of cost. 2
1.
2.
“Cancer Facts & The War on Cancer.” LIMRA, 2007.
USA Today, 3/18/2010 and 10/31/2008
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
What Can Happen to You?
You may become Chronically Ill
CHRONIC
ILLNESS
Chronic Illness affects many people and can create
additional expenses for a family. Some of these
expenses may include:
• Nursing Home Cost for a Private Room
For nursing home care, the national monthly
average is now $6,266, which translates into
$75,190 annually. 1
• Assisted Living Facility
For assisted living facilities the national monthly
average is now $3,185, which translates into
$38,220 annually.1
1
• Home Health Aide (Certified)
For Home Heath Aide, the national monthly
average is now $3,623, which translates into
$43,472 annually. 1
1. Cost
of Care Maps Genworth 2010 Cost of Care Survey- 2010
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
The worst can happen.
You may die too soon
•
DEATH
•
Almost 75% of Americans agree that life insurance is
the best way to protect survivors against the financial
implications of the premature death of a primary wage
earner.
68 million (32%) of American adults are uninsured.
1
2
Recommended from the government, not
the insurance companies. 3
After September 11, 2001, the U.S. Justice Department
calculated compensation to meet the needs of families
of victims from the terrorist attacks. The government
recommended approximate payments of:
• 12 times income for couples with no children
• 20 times income for households with children
1.
“America’s ‘Love-Hate’ Relationship with Life Insurance” LIMRA International. 2006.
2.
LIMRA – Trends in Life Insurance Ownership, 2005
3. Explanation
of the Process for Computing Economic Loss (Revised 2, 2002). Department of Justice, September 11 th Victim Compensation Fund of 2001,
www.fbfs.com/fbfs/news/newsarticle.cfm
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Terminal Illness Accelerated
Death Benefit Rider
• Terminal illness is determined by a condition
resulting from injury or illness which, as determined
by a physician, has reduced life expectancy to not
more than 12 months (no more than 24 months in
TX, GA, IL, MA, and WA).
• This rider allows the insured to access up to 100%
(max of $500,000) of the policy’s death benefit in
the event of a terminal illness
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Chronic Illness Accelerated
Death Benefit Rider
• Chronically ill is being unable to perform 2 of 6
activities of daily living (bathing, continence,
dressing, toileting, eating, and transferring) without
assistance from another person or being cognitively
impaired.
• 90 day waiting period
• Up to 2% of death benefit accessible per month
• Max lifetime benefit is 90% or $500,000 whichever
is less
• The policy must be inforce for 2 years before
benefits are available
Activities of
Daily Living:
Bathing
Dressing
Toileting
Eating
Continence
Transferring
*The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $500,000
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Critical Illness Accelerated
Death Benefit Rider
• Allows the insured to access his/her death
benefit if they are critically ill
• Critical Illness includes diagnosis of cancer, heart
attack, stroke, ALS, kidney failure, and major
organ transplant
• Max lifetime benefit is 90% or $500,000
whichever is less
*The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $500,000
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
What normally happens when
you suffer a Critical or
Chronic Illness?
1. Income goes down
2. Expenses go up
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Income Vs Expenses
Additional Income
From Living
Benefits!!!
Your Family’s Income
Time off Work
Deductibles
Your Family’s Expenses
Recovery Time
Co-Pays
Mortgage, Utilities, Food, Children…
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
48 - 48 - 62
What do these numbers mean?
• 48% of mortgage foreclosures are the result of financial
hardship due to critical Illness (only 3% due to death).1
•48% of businesses that fail, fail because of a critical
illness.2
•62% of bankruptcies are due to a critical illness. Of those
bankruptcies, 75% of them had health insurance.3
1
2.
3
Get Sick, Get Out: The Medical Causes of Home Foreclosures" HEALTH MATRIX, 2009.
Critical Illness Insurance 101 by mark Goldstein, http://ezinearticles.com/?Critical-Illness-Insurance-101&id=4450375
The American Journal of Medicine, 2009.
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
ACCUMULATED
CASH VALUE
(UL policies only)
DEATH
BENEFIT
TERMINAL
ILLNESS
Life Insurance
for Life
CHRONIC
ILLNESS
CRITICAL
ILLNESS
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
The OTHER Living Benefit
• Tax Free Retirement
• Cash Value Accumulation
• College Education
Expenses
• Be Your Own Banker!
Distributions such as loans and withdrawals will reduce the Policy Value and death benefit and loans will be charged interest.
If a policy lapses while a loan is outstanding, adverse tax consequences may result. If the Policy is treated as a modified
endowment contract (MEC) by IRC Sec. 7702A, loans are taxable when taken to the extent of gain then in the contract. Loans
and withdrawals from policy value may also be subject to a 10% federal income tax penalty if taken prior to age 591/2. Cash
distributions associated with benefit reductions, including reductions caused by withdrawals during the first 15 years, may be
taxable. Please consult your tax advisor regarding your particular situation. Loans, withdrawals and assignments are
considered distributions. Please review your policy for additional details regarding loans and withdrawals.
*Tax-Free Retirement, Patrick Kelly © 2007
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10
Alliance Solutions Advantage Term (Policy Form # ICC09 TL12 0709, TL12 0709) is a level
term life insurance policy, Alliance Solutions UL (Policy Form #UL01 1005) is a universal life
insurance policy, and Freedom Global IULSM (Policy Form #IUL03 1208) is an index
universal life insurance policy. All policies are issued by Western Reserve Life Assurance
Co. of Ohio, Columbus, OH. Rider form numbers TI01 0305, CRN01 1005, and CRT01
1005.
Policy and rider form numbers may vary, and these products may not be available in all
jurisdictions. Insurance eligibility and premiums are subject to underwriting.
In most states, an exception for life insurance coverage is suicide while sane or insane
during the firs two years the coverage is in force. In the event of suicide, the Company’s
liability may be limited to only the return of premiums paid. In Missouri, suicide is no defense
to payment of benefits unless the Company can show the insured intended suicide when
he/she applied/enrolled for coverage.
Depending on the state of issue your policy may be an individual Policy or a certificate
issued under a group Policy. The Policy is subject to the insurance laws and regulations of
each state or jurisdiction in which it is available for distribution. All state specific Policy
features will be described in your policy.
Alliance Marketing Group LC, is an independent contractor representing Western Reserve Life Assurance Co. of Ohio.
LD36811 09/10