Policy Form and State Variations. A Comprehensive Universal Life Product

Transcription

1 Life100 NWLLife100 Policy Form and State Variations A Comprehensive Universal Life Product AGENT GUIDE Competitive Premiums Issue Ages 0-85 Flexible Array of Optional Riders Supplemental Life Insurance (SLI) Critical Illness Rider Living Benefit Rider Accidental Death Rider Total Disability Premium Payment Rider Waiver of Monthly Deduction Rider Term Insurance Rider Spouse Term Life Rider Other Insured Rider Children Protection Rider SA-9256.Rev FOR AGENT USE ONLY

2 Life NWLLife TABLE OF CONTENTS Base Plan Highlights Premium Classes...2 Issue Ages...2 Minimum Face Amount...2 Minimum Annual Premium...2 Minimum Monthly Continuation Premium (MMCP)...2 Target Premium...2 Minimum Guaranteed Interest Rate...2 Current Interest Rate...3 Bonus Interest Rate...3 Face Amount...3 Face Amount Changes...3 Death Benefit Options...3 Account Balance...4 Surrender...4 Cash Value...4 Surrender Charges...4 Partial Surrender...4 Grace Period Processing...4 Expense Charges...4 Policy Loans...5 Crediting Rates on Loans...5 Maturity Value...5 Death Benefit Extension...5 Limitations and Exclusions Suicide...6 Incontestability...6 Delayed Payments...6 Misstatement of Age or Sex...6 Riders and Endorsements Supplemental Insurance Rider...7 Critical Illness Rider...7 Living Benefit Rider Automatic Issue...8 Accidental Death Rider...9 Total Disability Premium Payment Rider...9,10 Waiver of Monthly Deduction Rider...11 Term Insurance Rider...12 Spouse Term Life Rider...13 Other Insured Rider...13 Children Protection Rider...14 Underwriting Section Medical and Non-Medical Limits...16,17 Required Applications and Forms...18 Paramedical Services...18 Preferred Class Underwriting...18 Height and Weight Tables...19 Critical Illness Rider...19 Life Underwriting Address

3 Life NWLLife BASE PLAN HIGHLIGHTS Summary: NWL Life 100 is an easy, affordable way to provide for family or business life insurance needs. National Western Life Insurance Company created the NWL Life 100 Universal Life Insurance Plan to address many of the life insurance concerns of people in the new millennium. Premium Classes: Preferred / Non-Tobacco / Tobacco / Juvenile Juveniles have composite rates thru age 14. If an application for a change in risk class is not made or approved after age 14, then the juvenile will change to tobacco rates. Issue Ages: 0-14: Juvenile Tobacco/Non-Tobacco Preferred Minimum Face Amount: BAND 1: $25,000 BAND 2: $100,000 Minimum Annual Premium (MAP) $25,000 to $99,999 of Base Coverage: The Minimum Annual Premium (MAP) is the greater of: Minimum premium per 1,000 x the number of base units + minimum premium (riders/supplemental benefits) x units + $192 + substandard charges; or $300. The Minimum Annual Premium must be at least $ Minimum Annual Premium (MAP) $100,000 and Greater of Base Coverage: The Minimum Annual Premium (MAP) is the greater of: Minimum premium per 1,000 x the number of base units + minimum premium (riders/supplemental benefits) x units + substandard charges; or $300. The Minimum Annual Premium must be at least $ Minimum Monthly Continuation Premium (MMCP): The MMCP is the MAP divided by 12. Target Premium: The Target Premium is the maximum commissionable premium. The Target Premium for Base coverages of $25,000 to $99,999 is the Target Premium per 1,000 x number of base units + first year cost of insurance for riders and supplemental Benefits x units + $192 + permanent substandard charges. The Target Premium for Base coverage of $100,000 and greater is the Target Premium per $1,000 x number of base units + first year cost of insurance for riders and supplemental Benefits x units + permanent substandard charges. Minimum Guaranteed Interest Rate: National Western Life guarantees the interest rate on the account balance will never fall below 3.0% compounded annually. (Oregon will have a guaranteed interest rate of 3.0% per annum in policy years 1 10 and 2.5% per annum thereafter compounded annually, Texas has a guaranteed interest rate of 2.5% in all years). 2

4 Current Interest Rate: The account balance may be credited with a higher interest rate at such level and in such manner as determined by National Western Life. Current interest rates may be found on the Interest Rate Card (SA-8649) or on the Interest Rate section on NWL s website through the Beacon-Agent section at Bonus Interest Rate: In Policy years 11 and thereafter, a 1 2% interest bonus will be added to the current interest rate as long as the current interest rate at the end of the policy month is above 3.0%. (In the certain states that are referred to in the Minimum Guaranteed Interest Rate description, a 1 2% interest bonus is payable in policy years 11 and thereafter regardless of the 2.5% current interest rate.) Face Amount: The original face amount is determined at issue. Face Amount Changes: At any time after the first Policy Anniversary, the face amount may be increased or decreased by written request. Changing the face amount is subject to: Face Amount Decreases Any decrease will become effective on the Monthly Anniversary following receipt of the request by National Western Life. Any such decrease will reduce the face amount in the following order: 1. The most recent increase in face amount; then 2. The next most recent face amount increases successively; then 3. Any supplemental life insurance ( SLI ); then 4. The initial face amount. The face amount in effect at any time under this policy may not be less than the minimum face amount as defined in the minimum face amount description of this agent guide. Face Amount Increases Any request for an increase must be applied for on a separate application. It shall be subject to evidence of insurability as required by us. The increase must be for a minimum of $10,000. Any approved increase will be effective on the Monthly Anniversary shown in the face amount change endorsement. It will result in application of the face amount increase charge described in the monthly deduction provision. Only one increase is allowed in a 12 month period. Death Benefit Options: NWL Life 100 offers the following death benefit options: Option I : The death benefit will be equal to the greater of: 1. The face amount plus SLI; or 2. The account balance on the date of death multiplied by the death benefit percentage for the Insured s age as of last policy anniversary. Option II: The death benefit will be equal to the greater of: 1. The face amount plus SLI, plus the account balance; or 2. The account balance on the date of death multiplied by the death benefit percentage for the Insured s age as of last policy anniversary. Changes in the death benefit option may be requested in writing after the first Policy Anniversary. A change from Option I to Option II may require evidence of insurability. A change from Option II to Option I will result in a smaller death benefit and will not require evidence of insurability. The effective date of the change will be the Monthly Anniversary following the day we approve the request for the change. Only one change is permitted in any twelve month period. In any event, the death benefit will be required to meet the standards of the Tax Reform Act of

5 Account Balance: The account balance is the accumulation of premiums paid less the monthly deductions and any face amount increase charge with interest reduced by any partial surrenders. Surrender: This policy may be surrendered on any Monthly Anniversary during the lifetime of the Insured and before the maturity date upon written request to National Western Life. The amount payable upon surrender is the cash value. The cash value will be paid in cash or under a settlement option elected by the Owner. Cash Value: The cash value is equal to: The account balance minus any loans and loan interest minus the surrender charge; if any. Surrender Charges: The surrender charge is stated on page 5 of the policy. The surrender charge does not decrease due to partial surrenders or face amount decreases. The surrender charge is for 19 years and zero thereafter. Partial Surrender: 1. The minimum partial surrender amount is $ A partial surrender fee of $25 will be deducted from each partial surrender made. This means that if $500 is withdrawn, $475 is paid to the owner and $25 is retained by National Western Life for expenses. 3. The account balance is reduced by the partial surrender. 4. The face amount or SLI is reduced by the partial surrender if the death benefit is Option The maximum partial surrender is that portion of the cash value which would leave enough money in the Policy to pay the monthly deductions to the next Policy Anniversary. 6. Partial surrenders are limited to one each Policy year. 7. Partial surrenders may not be made which would reduce the face amount below the minimum. Grace Period Processing: The Policy will continue monthly processing as long as the Cash Value is sufficient to pay the monthly deductions. If the Cash Value on any monthly anniversary is insufficient to pay the monthly deductions for the current Policy month, the Policy will enter the Grace Period. During the first 10 (5 years at issue age 61 and thereafter) Policy Years, the Policy will not terminate if the total premium paid to date is greater than the sum of: 1. The accumulated Minimum Monthly Continuation Premium at the beginning of each Monthly Anniversary, starting with the Policy Date and ending with the current month. 2. Total amount of loans, loan interest and partial surrenders to date. Expense Charges: Percent of Premium Charge Years Current Maximum Amounts less than $100,000: All 7% 7% Amounts greater than or equal to $100,000 All 5% 7% Monthly Expense Charge on Base Face Years Current Maximum Amounts less than $100, 000 All $16.00 $16.00 Amounts greater than or equal to $100,000 All $6.00 $8.00 4

6 Policy Loans: A loan may be obtained using the cash value as the only loan security. The loan must be requested in writing. It will have the following conditions: 1. The loan may not exceed the cash value, minus an amount equal to the sum of monthly deductions to the next Policy Anniversary. 2. The loan interest rate is shown on Page 3 of the Policy. Loan interest is payable in advance on the amount borrowed to the next Policy Anniversary. Interest not paid when due will be added to the loan and bear interest at the same rate. 3. All or part of the loan may be repaid at any time the Policy is in force during the lifetime of the Insured. Each payment must be at least $ Upon surrender of the policy for the cash value, any loan indebtedness will be deducted. 5. If the loan balance becomes more than the account balance, less the surrender charge, the policy will remain in force during the 61 day Grace Period that follows. Notice of required premium will be sent to the Owner and any assignee at least 31 days prior to the lapse of the Policy. The Policy will lapse unless the Grace Period provisions are met. 6. The policy must be in force when the loan request is made. Crediting Rates on Loans: A policy gain is the portion of the account balance that exceeds the net of the sum of premiums paid less partial surrenders. A loan for up to that gain may be obtained for a zero net cost (i.e. the credited interest rate for the loaned portion of the account balance, (but not to exceed the gain) will equal the loan interest rate). Loans in excess of the gain will currently be assessed a 1.5% net interest rate charge, which is subject to change. Maturity Value: On the maturity date, if this contract is in force, National Western Life will pay the Policy Owner the maturity value if you elect to surrender the contract. The maturity value will be equal to the cash value on the maturity date. Death Benefit Extension: On the Policy Anniversary after the Insured attains age 121, the Death Benefit provision of this policy will continue to apply, subject to the following conditions: 1. The policy must be in force. 2. No further premium payments will be accepted by us; 3. We will continue to credit interest at the declared rate; 4. Interest on loans will continue to accrue; 5. There will be no further Monthly Deductions; 6. This provision will have no effect on the termination of any riders attached to this policy. All riders will terminate as provided in the rider. 5

7 Life NWLLife LIMITATIONS AND EXCLUSIONS - SUBJECT TO STATE VARIATIONS Suicide: Within two years after the Policy Date, if the death of the Insured is a result of suicide, while sane or insane, nothing will be paid under the policy except to return premiums that have been paid, less all partial surrenders and any loan balance. Within two years from the effective date of any increase in the face amount, if the death of the Insured is the result of suicide, while sane or insane, we will pay nothing with respect to the increases except to return all monthly deductions deducted for such increases. Incontestability: With respect to statements made in the initial application, any subsequent applications, and amendments thereto for this policy, we will not contest this policy after it has been in force during the lifetime of the Insured for two years from the Policy Date, except for fraud or rider provisions relating to disability benefits or additional benefits in the event of accidental death. With respect to statements made in the application for increases in coverage, we will not contest the increase in coverage after the increase has been in force during the lifetime of the Insured, for two years after the effective date of the increase except for fraud. With respect to statements made in the application for policy reinstatements, we will not contest the policy reinstatement after the reinstatement has been in force during the lifetime of the Insured for two years after the effective date of reinstatement, except fraud. Delayed Payment of Cash Surrender or Policy Loan: The Company has the right to delay the payment of any cash surrender or the granting of a policy loan, except a loan to pay premiums on any policy that the Insured may have with the Company, for a period of up to six months. Misstatement of Age or Sex: The Policy is issued at the Insured s age and sex shown in the policy, according to the information given in the application. If the age or sex of the Insured has been misstated, the death benefit shall be that which would be purchased by the most recent monthly cost of insurance at the correct age or sex. 6

8 RIDERS AND ENDORSEMENTS Riders may not be available in all states. Riders may vary by state. Check with Marketing for state approvals and specific Rider forms for details. SUPPLEMENTAL LIFE INSURANCE ENDORSEMENT FORM : The Supplemental Life Insurance Endorsement (SLI) is an endorsement, which provides supplemental life insurance coverage to age 121. The additional coverage differs from the Level Term Insurance coverage due to the fact that it is considered as part of the base life coverage when determining the net amount at risk calculation and is used in determining if the policy complies with the Tax Reform Act of The agent can use the SLI to reduce the minimum premium requirements in the policy. The SLI has no surrender charges or per unit charges associated with it. The use of the SLI will reduce the illustrated values since the premium is being reduced; however if you continue to pay a premium that is higher than required by the SLI it will increase the illustrated values. Issue Ages: Same as base plan Underwriting Classes: Male/Female; Non Tobacco, Tobacco, Preferred Premium: Same as Term Insurance Rider, see rates section Application: Request this endorsement by checking box for other, write in amount, and attach NWL Life 100 illustration to application. CRITICAL ILLNESS BENEFIT RIDER FORM : With National Western Life s Critical Illness Rider the policyowner can access up to 25% or 50% of his life insurance policy benefits to ease the financial strain resulting from any of the conditions specified below. Issue Ages: 0-65 Underwriting Classes: Male/Female; Non Tobacco, Tobacco Benefit: A percentage of the base policy death benefit, including the Term Insurance Rider, if applicable, is payable to the policyowner upon the occurrence of a covered condition. The percentage is elected by the policyowner and is equal to 25% or 50%. The maximum company benefit limit per life, regardless of the percentage elected, is $100,000 for heart attack and bypass surgery and $200,000 for all other covered conditions. The Critical Illness benefit provided by this rider is payable only once regardless of the subsequent occurrence of the same or a different covered occurrence which would otherwise be covered. Application: An application supplement will be required with the application. Request this rider by checking box for Other and writing CIR and either 25 or 50. Premium: See rates section Covered Conditions: Life Threatening Cancer: Only those types of cancer shown by the presence of a malignancy identified by the uncontrolled growth and spread of malignant cells and the invasion of tissue. Leukemia and Hodgkin s Disease (except Stage I Hodgkin s Disease) shall be considered life threatening cancer. 7

9 Heart Attack: Death of a portion of the heart muscle (myocardium) resulting from a blockage of one or more coronary arteries. An Attending Physician s Statement, EKG and cardiac enzymes information will be required to establish diagnosis. Coronary Artery Bypass Surgery: The actual undergoing of bypass surgery for the treatment of coronary artery disease. Stroke: Any acute cerebral vascular accident lasting more than twenty-four hours, producing neurological impairment and resulting in paralysis or other measurable objective neurological deficit persisting for a least thirty days. Excluded are Transient Ischemia Attacks and Vertebrebasilar Ischemia. Kidney Failure: The end stage of chronic, irreversible failure of both kidneys to function necessitating regular renal dialysis expected to continue for a period of at least 6 months or resulting in a renal transplant. Major Organ Transplant: Medically necessary surgery to transplant into the Insured from another human being, any of the following organs: heart, lung or lungs, liver, bone marrow or pancreas. Eligibility: Must satisfy a 30 day wait period after issue and a 30 day alive period following the onset of a covered condition. Coverage terminates at the earlier of (1)when the benefit is paid, or (2) at age 75. Underwriting: A list of disqualifying conditions is included in the Underwriting Section of this agent guide. Applicants will be issued on standard basis or will be declined. Effect of Benefit on Policy: If a Critical Illness benefit is paid, all base policy values (including indebtedness) and the Term Insurance Rider death benefit are reduced proportionally, and the rider is terminated. Note that the taxability of the payout needs to be determined by the policyowner. Cost Of Insurance Charges: Each month the current cost of insurance charge is deducted from the policy s account balance, until the rider terminates. Target premiums are shown in the Rates Section of this Agent Guide. LIVING BENEFIT RIDER FORM : National Western Life will automatically add a Living Benefit Rider to the NWL Life 100 policy if approved in the state of residency. There is no additional cost of insurance charge for the Living Benefit Rider. The rider is designed to give a Benefit Advance if the Primary Insured is diagnosed with a terminal medical condition. A qualified physician must diagnose the Insured as having a terminal medical condition (as defined in the policy) which will result in death within a year from the date of certification. The Benefit Advance is the lesser of $250,000 or 75% of the base policy death benefit minus any outstanding policy loans and unpaid loan interest. National Western Life may charge a claim processing fee. Receipt of a Benefit Advance will reduce cash values, loan values and the death benefit of the policy. The Benefit Advance will be treated as a lien against the policy values and policy death benefit. The lien will accrue with interest. Access to policy values and death benefit is limited to the amount in excess of the outstanding lien. 8

10 ACCIDENTAL DEATH BENEFIT FORM : Issue Ages: 0 55; coverage continued to age 65 Benefit: Level term insurance, payable upon an accidental death. The rider s benefits are contestable at any time. Eligible Person: Only the Primary Insured Minimum Benefit Amount: $10,000 Maximum Benefit Amount Issued Per Insured: The lesser of: 1. two times the face amount of the Primary Insured, or 2. $500,000. Definition of Accidental Death: Accidental bodily injury provided that the Insured died within 90 days of the accident. The following exceptions may vary by state of issue. Exceptions: The benefit will not be paid if death was caused, directly or indirectly, by: 1. Intentionally self-inflicted injuries or suicide, while sane or insane, 2. War or any act of war, declared or undeclared, 3. Being in, descending or falling from or with an aircraft. This exclusion does not apply if the Insured was riding as a passenger in a civilian aircraft flown by a licensed pilot. "Passenger" excludes one who received training or has a duty on an aircraft even if the training or duty does not relate to the trip, 4. Bodily or mental infirmity, or disease, 5. Service in the military, naval or air forces of any country, group of countries, or international organization at war, declared or undeclared. 6. Participating in or engaging in a riot, 7. Voluntarily taking poison, except food poisoning, or inhaling gas or fumes except while conducting one s duties during the course of employment, 8. Voluntarily taking drugs or narcotics unless as prescribed by a qualified doctor, or 9. Attempting to commit or committing a felony. Termination of Rider: Earliest of: 1. Age 65 of the Insured (Policy Anniversary following age 65 of the Insured), 2. Termination of the policy, or 3. On written request for termination of the rider. TOTAL DISABILITY PREMIUM PAYMENT RIDER Form : Issue Ages: 0 50 years old This rider credits premium, up to $3,000 a month to the policy if the insured becomes totally disabled. NOTE: Not available with Rider Form Definition of Disability: Total disability, under the terms of this rider, means a condition which: 1. the cause is an injury which occurs or a sickness which begins while this rider is in force; and 2. the disability begins after the Insured attains age 16 and before the first policy anniversary date after the Insured attains age 60; and 3. the disability lasts four consecutive months or more; and 9

11 4. the Insured: a. during the first two years of total disability, cannot do the material and substantial duties of his or her occupation; or b. after two years from onset of total disability, cannot do the material and substantial duties of any occupation for which the Insured is reasonably suited by education, training, or experience; or c. cannot return to school if the Insured is a full time student. The Insured is also considered to be totally disabled if the Insured, as the result of accidental injury which occurs while this rider is in force: 1. has lost the use of both legs; or 2. has lost the use of both arms; or 3. has lost the use of one leg and one arm; or 4. has lost the sight in both eyes. Exclusions: Total disability which results from war or act of war, declared or undeclared, or from intentionally self inflicted injury is not covered. Benefit: Covers total disability (as defined above) which commences prior to the Insured s attaining age 60. Application: Request this rider by checking box marked WP. The amount of monthly benefit to be credited to the policy on each monthly anniversary date will be the lesser of: the benefit amount for this rider (not more than the initial planned premium); or of the premium paid over the last 36 months prior to the onset of total disability. The maximum benefit is the lesser of the initial planned premium or $36,000 per year ($3,000 per month) Proof of Total Disability: Before NWL provides benefits, NWL must receive from the Policyholder the proof we require that the Insured is totally disabled. We must receive it: 1. during the lifetime of the insured; and 2. within one year after the beginning of total disability. Failure to give written notice of a claim and proof of total disability within one year will not keep us from approving a claim if it is shown that written notice of a claim and proof of total disability were given as soon as was reasonably possible. Proof of continuance of Total Disability: We may require proof of the continuance of total disability. We will not require proof more than once a year after total disability has continued for two years. Premium will not be credited to the policy if: 1. proof of total disability is not furnished to us as requested; or 2. the Insured fails to submit to a medical examination that we request; or 3. the Insured is not disabled. Termination of Rider: This rider will terminate: 1. on the policy anniversary following the Insured s 60th birthday; however, such termination will not affect a claim for the monthly disability benefit occurring before that date; or 2. if we are asked by you in writing to terminate this rider; or 3. when the policy terminates. 10

12 WAIVER OF MONTHLY DEDUCTION RIDER FORM : We will waive the monthly deductions for the Policy which fall due after the Policy Anniversary when the Insured s age is 15 or over, and while this rider is in force and the Insured is disabled, if the Policyholder provides the proof of disability required by NWL in a timely manner. NOTE: Not available with Rider Form Issue Ages: 0 50 years old Application: Request this rider by checking box marked Other and writing MDR. Definition of Disability: Disability, under the terms of this rider, means a condition which: 1. is caused by bodily injury incurred or disease which first manifests itself after the effective date of this rider ; 2. begins prior to the Policy Anniversary when the Insured s age is 60; 3. has lasted without interruption for at least six consecutive months; 4. keeps the Insured from doing work for which the Insured is reasonably suited by education, training, or experience; 5. is not described in Exceptions. Even if the Insured can work, the Insured is deemed to be disabled if there is total and permanent loss of: 1. the sight of both eyes; 2. the use of both hands; 3. the use of both feet; or 4. the use of one hand and one foot. This exception does not apply if the cause of disability is one described in Exceptions. Exceptions: No monthly deductions will be waived if disability results from: 1. injury the Insured caused on purpose; 2. war or any act of war, declared or undeclared; 3. service in the military, naval, or air forces of any country, group of countries, or international organization at war, declared or undeclared; or 4. participating or engaging in a riot. Monthly Deduction to be Waived: The amount waived will be: 1. the cost of insurance for the face amount in force on the date disability began; plus 2. the rider cost for all riders (including this rider) in force on the day disability began; plus 3. any expense charge other than a premium expense charge. When we start waiving monthly deductions, we will also credit the account balance with an amount that equals: 1. monthly deductions not waived between the day the Insured became disabled and the first monthly deduction day a deduction was waived; plus 2. interest which such deductions would have earned under the Policy. Proof of Disability: Before NWL provides benefits, NWL must receive from the Policyholder the proof we require that the Insured is disabled. We must receive it: 1. prior to the Insured s death; 2. while the Insured is disabled; and 3. by one year past the date the Insured became disabled. 11

13 If the Policyholder can show that proof was given as soon as was reasonably possible, we will still provide benefits once we receive all the required proof. We will do this as if the Policyholder did give the proof to us in time. If the Policyholder cannot show us that proof was given as soon as was reasonably possible, we will waive only: 1. the monthly deductions which became due during the 12 months prior to the date proof was given; and 2. the monthly deductions which became due after the date proof was given. As part of the proof that the Insured is disabled, we may require medical exams by doctors of our choice at our cost. Proof of Continuance of Disability: We may require proof that the Insured stays disabled. We may ask for this proof: 1. at reasonable times in the first 2 years the Insured is disabled; and 2. once a year after that. Monthly deductions will not be waived if: 1. proof is not given when we ask for it; or 2. the Insured is not disabled. Termination of Rider: This rider will stop: 1. on the Policy Anniversary when the Insured s age is 60. This does not apply to benefits being provided for disability which began before such Policy Anniversary; 2. when the Policyholder writes to us, sends us the Policy for endorsement, and requests that we cancel this rider; or 3. when the Policy terminates or matures. Disability That Begins During Grace Period: If total disability begins during a grace period, we will waive subsequent monthly deductions under the terms of this rider provided the Policyholder pays the premium needed to cover the monthly deductions through the Policy Month in which total disability began. Rider Target Premium: Number of units of face amount times Waiver Target Premium which is shown in the Rate section. If we should include the rider cost in the monthly deductions after the rider terminates, our only liability will be to return the amount we deducted, plus interest such amount would have earned under the Policy. TERM INSURANCE RIDER Form and any revisions: This rider provides level term insurance to age 121 on the Primary Insured with no administrative expense charge and no surrender charge. Issue Ages: Non Tobacco, 0-85 Tobacco; Preferred, 0-14 Juvenile Minimum Benefit Amount: $25,000 Maximum Benefit Amount: Five times the base policy face amount. Application: Request this rider by checking box for TIR and writing in the amount. Cost of Insurance: Same as the rates that are applicable to the base policy. Beneficiary: As indicated in the application Increases or Decreases: Allowable within limits shown above; increases will require evidence of insurability. 12

14 Termination of Coverage: The coverage will stop at the earliest of any of the following: 1. The Policy Anniversary when the Insured is 100 years old, 2. Termination of the policy, 3. Death of the Insured, or 4. On request for termination of the rider. SPOUSE TERM LIFE RIDER FORM : This rider provides decreasing term life insurance until the spouse reaches age 65. The benefit per unit is $5,000 to age 20, decreasing $100 per year starting at age 21 and a level $1,000 from age 60 to 65. The benefit at age x = $5,000 minus $100 times the difference between age x and 20. Specify the number of units on the application. Person Covered: Spouse named in application. Payor Death Provision: None Conversion Provision: The spouse may convert to a whole life or endowment plan for an amount no greater than the amount in force under this rider at time of conversion. The minimum premium is $19.36 per unit. Issue Limits: One unit minimum and ten unit maximum but not to exceed amount issued on base policy. Termination of Rider: Earliest of: 1. Death of Insured, 2. Rider anniversary when the Insured spouse is 65 years old, 3. Termination of policy, 4. On request for termination of the rider, or 5. Upon conversion. OTHER INSURED RIDER FORM AND ANY REVISIONS: This rider provides level term insurance to age 121 on other persons. Issue Ages: Preferred; Non-Tobacco, 0-85 Tobacco; 0-14 Juvenile Eligible Other Insureds: Spouse, child, business partner, or anybody you name provided that the Primary Insured has an insurable interest in the life of such person. Number of Other Insureds: Up to 10 can be administered (includes owner of base policy). Minimum Benefit Amount on Each Insured: $100,000 Preferred; $10,000 Non Tobacco User, Tobacco User, and Juvenile Application: Request this rider by checking box for OIR and completing Other Insured section. Maximum Benefit Amount on Each Insured: The face amount of the base policy plus Term Insurance Rider coverage. Cost of Insurance: Same rates as are applicable to the Primary Insured, but taking into account the age, sex and underwriting class of the Other Insured. 13

15 Beneficiary: As indicated for each Other Insured in the application. Increases or Decreases: Allowable within limits shown above; increases or adding additional Other Insureds will require evidence of insurability. Benefits Available to Other Insureds: None. Continuation of the Rider After the Death of the Primary Insured: The rider will be in force until the earlier of: 1. Ninety (90) days after the Primary Insured s death, or 2. The issue date of a new policy on the Other Insured if the conversion right is exercised. Conversion Right: At any time while this rider is in force, the Other Insured may convert his/her insurance without evidence of insurability. 1. The amount of insurance of the new policy may not be more than the insurance benefit on the conversion date. 2. The new policy must be a whole life or adjustable life plan. 3. The premium class of the new policy will be the same as the premium class of the Other Insured under this rider. The premium will be the rate used at the Other Insured s age on the new policy. 4. The incontestable and suicide provisions in the new policy shall be operative from the Other Insured s effective date of coverage under this rider. 5. When we issue the new policy on the Other Insured, we will remove that person from coverage under this rider and return the amended policy. Termination of Coverage: The coverage will stop with respect to any other Insured at the earliest of any of the following: 1. Age 100 of the Other Insured; 2. Age 100 of the Primary Insured; 3. Termination of the policy; 4. Death of the Primary Insured, subject to continuation of coverage provisions; 5. On request for termination of the rider, or 6. Upon conversion. CHILDREN S TERM LIFE INSURANCE RIDER FORM : This rider provides $1,000 of level term life insurance for each unit of insurance on this rider. Persons Covered: Natural and adopted children of the Insured. Maximum Issue Age: 15 days through 17 years. Once issued, coverage extends to Policy Anniversary when age 25. Payor Death Provisions: Upon the death of the Primary Insured while the policy and rider are in full force, insurance on each child is continued as fully paid-up to age 25. Conversion provision: While the rider is in force, the insurance on each child may be converted into a new contract. Proof of insurability is not needed if: 1. The conversion date is the earliest of: a. the child s 25th birthday, b. the policy anniversary when the Insured is 65, or c. the death of the Insured. 2. The minimum amount of the new policy will be the Insurance Benefit of the rider. 14

16 3. If the new policy is of the same form as the current policy or another form of adjustable death benefit plan, the maximum initial amount will be the greater of: a. five times the Insurance Benefit of the rider, or b. $50, If the new policy is not an adjustable death benefit plan, the maximum amount will be five times the Insurance Benefit of the rider. 5. The new policy must be a whole life or universal life plan. 6. We must receive an application and the first premium for the new policy: a. within 31 days of the child s 25th birthday, b. within 31 days of the policy anniversary when the Insured is 65, or c. within 90 days of the Insured s death. 7. The new policy will start on the latest of: a. the date the application is signed, b. the date the first premium is paid, or c. the conversion date. 8. The new policy will start only if the child is living. 9. The premium class of the new policy will be the same as the premium class of the child under the child protection rider. The premium will be the rate we use at the child s age on the new policy. 10. We may require evidence of insurability if any riders are applied for on the new policy. 11. The Incontestable and Suicide provisions in the new policy shall be operative from the effective date of this rider. The minimum premium is $6.46 per $1000 to Primary Insured s age 65, regardless of the number of children. Issue Limits: Minimum 5 units; Maximum 20 units. One unit is $1,000 of insurance on each child. Termination of Rider: Earliest of: 1. The rider anniversary when the Primary Insured is 65 years old, 2. Termination of the policy, 3. On request for termination of the rider, or 4. Upon conversion. 15

17 Life NWLLife UNDERWRITING National Western Life will issue NWL Life 100 policies under the following rating classes: Preferred, Non-Tobacco, Tobacco, and Juvenile. PREFERRED CLASS MEDICAL REQUIREMENTS ***See page 19 for Qualifications*** Face Ages Ages Ages Ages Amount & up $100,000 to $250,000 C C D D $250,001 to $500,000 C D D E $500,001 to $1,500,000 C D D E $1,500,001 and up E** E** E** E** NON-TOBACCO, TOBACCO AND JUVENILE CLASS MEDICAL REQUIREMENTS CHART A For Applicants Residing in: CA, DC 1, FL, GA, IL, LA, MD, ME 1, NC, PR, SC, TX 1 Washington DC and Maine Residents: For ages 18 and older, replace "non-medical" with requirement "A". Face Ages Ages Ages Ages Ages Amount & Up Through $50,000 NM NM NM NM B $50,001 to $99,999 NM A A B C $100,000 to $150,000 NM A A C D $150,001 to $250,000 NM* A C D D $250,001 to $500,000 C C D D E $500,001 to $1,500,000 C C D D E $1,500,001 and up C E** E** E** E** 16

18 CHART B For Applicants Residing In All States Not Covered by Chart A Face Ages Ages Ages Ages Ages Amount & Up Through $50,000 NM NM NM NM B $50,001 to $99,999 NM NM NM B C $100,000 to $150,000 NM A A C D $150,001 to $250,000 NM* A C D D $250,001 to $500,000 C C D D E $500,001 to $1,500,000 C C D D E $1,500,001 and up C E** E** E** E** Medical Requirements: A Saliva (not available in all states) or DBS or Blood Profile B Para Medical and HOS C Para Medical, HOS and Blood Profile D Para Medical, HOS, Blood Profile and ECG E M.D. exam, HOS, Blood Profile and ECG * An Attending Physicians Statement is required from child s pediatrician. **Ages include stress test for $5,000,000 or more. Ages 46 and up include stress test for $3,000,000 or more. Notes: 1. The Company reserves the right to request any medical requirements it deems necessary regardless of ages or amounts of insurance. 2. M.D. exams should be arranged through a paramedical facility. 3. An exam by the applicant s personal physician will not normally be acceptable. 4. The non medical privilege will not automatically apply to applicants not seen by the agent. 5. Medical requirements will not be waived if the face amount is reduced after the application is submitted. 6. Other company exams will normally be accepted if completed within the past 6 months. On these cases the applicant must always answer all medical questions on the NWL application. 7. In determining Medical Requirements the chart limits must include the application Face Amount PLUS the total amount of insurance in force with National Western Life. 8. These guidelines are not applicable to all life products. See specific product underwriting guidelines for exceptions. 17

19 Inspection Limits: Inspections are requested from the Home Office on all applicants applying for $500,000 or more. Financial Questionnaire: A financial questionnaire (01-S013-98; (01-S013A used in AR, CO, FL, KY ME, NM, OH, PA); 01-S013MN; 01-S013-SC) must be submitted with applications of $1,500,001 or more. Required Applications and Forms: Please refer to the Life Application and Required Forms Chart (SA-9027). On the application, you must specify NWL Life 100. Paramedical Services: The paramedical services listed below are approved for use. Examination Management Services, Inc Hooper Holmes (Portamedic) American Paramedical Professional Systems, Inc Preferred Class Underwriting: Minimum base policy of $100,000. The qualifications for preferred risk must be closely adhered to by the Risk Selection Department. To prevent client dissatisfaction, careful applicant selection must be performed by the agent before presenting preferred risk rates. Reconsideration can be made on the first policy anniversary subject to a new exam and blood profile completed at the policyowner s expense. Qualifications: 1. Tobacco Use: None in the past twelve months, 2. Family history (parents/siblings): Negative for cardiovascular death before age 60, 3. Blood pressure: Untreated up to 140/90 to age 60; 150/90 age 60 plus, 4. Cholesterol: 220 to age 39; 230 ages 40 55; 240 age 56 plus. HDL ratio of 5.5 to 1 or less, 5. Standard risk with no history of: coronary artery/heart disease, internal cancer, diabetes, or alcohol abuse or drug use, 6. Driving/police record: No more than 3 moving violations in the past 2 years, no DWI, felony, or incarceration in the past 5 years, 7. Height and Weight: Within the limits of the Height and Weight Table (See table on next page). 18

20 Preferred Class Underwriting Height and Weight Table MALE Height Weight Height Weight Height Weight 4 8" " " " " " " " " " " " " " " " " " " " " " " " " " 225 Height and Weight Table FEMALE Height Weight Height Weight Height Weight 4 8" " " " " " " " " " " " " " " " " " " " " " 184 CRITICAL ILLNESS RIDER : Applicants should be selected carefully and not written if any of the following health history is present: Aneurysm Angina pectoris Arteriosclerosis Atrial fibrillation Blood pressure (if poorly controlled) Buergers disease Blindness (one or both eyes) Cancer (internal) Cardiomegaly Cardiomyopathy Cerebral vascular accident Chest pain Colon polyps Coronary artery bypass Coronary occlusion Coronary thrombosis Diabetes mellitis ECG (Major changes) 19

21 (if poorly controlled or with heart disease, obesity, or tobacco user) Familial polyposis of colon HIV positive Intermittent claudication Leukemia Myocardial infarction Paralysis Papillomas (multiple) Polycystic renal disease Renal dialysis Stroke Tachycardia Tumors (malignant) Heart attack Hodgkin s disease Kidney failure Malignant tumors Organ transplant Palpitations Polyarthritis nodosa Pulmonary embolism Renal disease Subarachnoid hemorrhage Transient ischemic attack LIFE UNDERWRITING ADDRESS New Business Department National Western Life Insurance Company 850 East Anderson Lane, Austin, TX Phone: or Fax: