20 Pay Life Added flexibility means even more peace-of-mind PN0024E (2014/05/26)

Transcription

1 20 Pay Life Added flexibility means even more peace-of-mind PN0024E (2014/05/26)

2 Fully guaranteed non-participating whole life plan with level coverage for life and guaranteed premiums payable for 20 years Guaranteed Cash Values (CV) and Reduced Paid- Up (RPU) Values available as early as the 10 th policy anniversary 1

3 Plan Overview Fully guaranteed premiums and paid-up coverage in 20 years Guaranteed Cash Values and Guaranteed Reduced Paid-Up coverage after 10 years Attractive compensation with 50% FYC Several Riders and benefits available for additional protection 2

4 Fully Guaranteed Premiums and Paid-up Coverage in 20 years Available for ages 0 to 65 based on Age Nearest (to the policy anniversary) Coverage available from $25,000 to $5,000,000 (minimum premium requirement of $250 per year) $75 annual policy fee 3

5 Guaranteed Cash Values begin after 10 years As early as the 25 th policy anniversary (depending on age category and smoker status), Cash Values will equal the sum of the base annual premiums (excludes policy fees, modal loadings, ratings and rider premium). Males and Females Non-smoking Adults (Ages 18-65) After the 10 th year, CV is 20% of TBAP (Total Base Annual Premiums) After the 15 th year, CV is 50% of TBAP After the 25 th year, CV is 100% of TBAP Males and Females Smoking Adults (Ages 18-65) After the 10 th year, CV is 20% of TBAP After the 20 th year, CV is 50% of TBAP After the 30 th year, CV is 100% of TBAP Males and Females Juveniles (Ages 0 to 17) After the 10 th year, CV is 30% of TBAP After the 20 th year, CV is 50% of TBAP After the 30 th year, CV is 100% of TBAP 4

6 Guaranteed Reduced Paid-up Coverage beginning after 10 years The 20 Pay Life plan offers a RPU coverage of 50% of the coverage on the 15 th policy anniversary. Increases 10% per year to fully paid-up coverage on the 20 th policy anniversary. No further premiums required. 5

7 Flexibility to Meet Changing Needs If the client s personal or business situation changes, there are options: Between the 10 th and 20 th policy anniversary the client can elect to: use the Automatic Policy Loan feature to continue paying the premiums take the Cash Value of the plan and lapse the coverage take the RPU option The RPU option will have no CVs associated with the coverage. However, contractually the client has the guaranteed right to reinstate their premium paying policy within 2 years from when they elected the RPU option. 6

8 Guaranteed Access to Cash Values The Automatic Policy Loan (APL) option will start drawing on the policy cash value to continue with any missed premium payments after 10 years. This option protects clients who have invested many years into their 20 Pay Life plan and allows them to continue to grow their value without reducing coverage or lapsing their policy. Standard policy loans are also available starting on the 10 th policy anniversary. A standard loan can be made from the policy cash values and used as the client sees fit. This option continues to be available after the 20 th policy anniversary when the policy is fully paid-up. 7

9 Available Riders Waiver of Premium (On Life Insured only) Issue age Age Last Accidental Death Benefit (ADB) Issue age Age Last Children s Term Insurance Benefit (CTIB) 10-year or 20-year Term Riders The rider cost for ADB and CTIB allows coverage of each to continue after the base policy becomes paid-up. ADB coverage ranges from $25,000 to $500,000 and is payable in the event of death on or before the Life Insured s age 65. Death must occur within 90 days of the bodily injury from accidental means. CTIB covers children aged 0 to 17 (Age Last) for amounts between $5,000 and $30,000. Coverage can be converted to permanent insurance between the child's 21 st and 25 th birthday for up to 5 times the coverage amount. (Subject to plan minimums and maximum coverage per child. Refer to contract wording for limitations.) 8

10 Attractive Compensation - with 50% FYC Commission as a percentage of premium First Year Commission Renewal Commissions Years 2 5 Service Commissions Years Pay Life 50% 3% 3% Supplementary Benefits 35% 5% 0% 9

11 20 Pay Life - Early Start A little goes a long way! Allows for some growth of funds while providing a high level of protection that can last a lifetime. $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Cash Value Paid-up Coverage Premiums Paid 10 Years 15 Years 20 Years 25 Years 30 Years Values at end of year Based on a Female, Age 10 for $50,000 of coverage 20 Pay Life examples are based on The Wave v28.0 illustrations 10

12 20 Pay Life - Funeral Planning Guaranteed peace of mind! The cash values and reduced paid-up values provide excellent options for the expected and unexpected life events. $30,000 $25,000 $20,000 Cash Value Paid-up Coverage Premiums Paid $15,000 $10,000 $5,000 $0 10 Years 15 Years 20 Years 25 Years 30 Years Values at end of year Based on a Male, Non-smoker, Age 60 for $30,000 of coverage 11

13 Case Study temporary coverage Male, 35, Non-smoker applying for $250,000 of coverage Choice 1: BMO Insurance Preferred Term 10 plan Initial 10 years of premiums are $190 per year Over the course of the next 50 years, premiums paid will total over $240,000 No CVs or RPUs available No coverage after the age of 85 Annual Premiums Total Premiums Paid Years 1-10 $ $1,900 Years $ $10,450 Years $1, $29,825 Years $5, $84,150 Years $15, $240,100 12

14 Case Study permanent coverage Male, 35, Non-smoker applying for $250,000 of coverage Choice 2: The 20 Pay Life plan Premiums are $3, per year for 20 years Total premiums paid for life will equal $68,150 Guaranteed CSVs and RPUs become available after 10 years Coverage continues for life Total Premiums Paid Cash Values Paid-Up Coverage Year 10 $34,075 $6,665 $25,000 Year 15 $51,113 $24,995 $125,000 Year 20 $68,150 $49,998 $250,000 Year 30 $68,150 $78,628 $250,000 13

15 Added Flexibility means even More Peace-of-mind If your client s personal or business situation changes, 20 Pay Life is a safety net that gives you options! Information contained in this document is for illustrative purposes and is subject to change without notice. Refer to an up-to-date policy illustration for this plan for a current statement of benefits. 14

16 Disclaimers The information in this publication is intended as a summary of our products and/or services and may include projected values based on a set of assumptions. Actual results may not be guaranteed and may vary. Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions and limitations. The actual policy issued governs. Each policyholder s financial circumstances are unique and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their particular circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor. For Advisor Use only. Insurer: BMO Life Assurance Company Registered trade-mark of Bank of Montreal, used under licence. 15