DInamic Foundation. presented to. presented by. prepared on. Noncancelable Disability Income Insurance. Gary Sample

Transcription

1 DInamic Foundation Noncancelable Disability Income Insurance presented to Gary Sample presented by Scott Sorrell Capital Financial Solutions 8816 Six Forks Rd. Suite 301 Raleigh, NC (919) prepared on November 05, 2014

2 Why DI? What is your greatest asset: Your home? Your Business? They both are vital to your lifestyle, and they are the result of your most valuable asset - your ability to earn an income. If you become too sick or hurt to work, what would happen to everything you have worked so hard to build for yourself, your family and your future? "It won't happen to me." You probably think of a disability as something that happens to other people. But simply believing "it won't happen to me" doesn't mean at sometime in your life you won't be faced with a disabling illness or injury. Becoming too sick or hurt to work can happen to anyone at any time. *Frequency of Disabling Injuries Class All Motor Vehicle Work Workers Off-the-Job Home Public Non-Motor Vehicle One Every... 1 second 15 seconds 10 seconds 3 seconds 2 seconds 4 seconds * Source: National Safety Council, Injury Facts 2010 Edition Why is your income your greatest asset? Annual Salary Age $50,000 $75,000 $100,000 $150,000 $200,000 $250,000 $300, ,850,000 1,600,000 1,350,000 1,100, , , ,000 2,775,000 2,400,000 2,025,000 1,650,000 1,275, , ,000 3,700,000 3,200,000 2,700,000 2,200,000 1,700,000 1,200, ,000 5,550,000 4,800,000 4,050,000 3,300,000 2,550,000 1,800,000 1,050,000 7,400,000 6,400,000 5,400,000 4,400,000 3,400,000 2,400,000 1,400,000 9,250,000 8,000,000 6,750,000 5,500,000 4,250,000 3,000,000 1,750,000 11,100,000 9,600,000 8,100,000 6,600,000 5,100,000 3,600,000 2,100,000 The table shows how much money you could earn if you work until you reach the age of 67 Page 2 of 9

3 Designed for: Gary Sample Policy Information Base Monthly Benefit Elimination Period: 90 Days Maximum Benefit Period: To Age 65 DINAMIC FOUNDATION Disability Income Insurance Summary Illustration Noncancelable and Guaranteed Renewable Annual Amount Premium $4,000 $1, Total Monthly Benefit $4,000 $1, Potential Annual Base Benefit ($4, x 12 months) = $48,000 *Potential Cumulative Base Benefit ($4, x 12 months x 20 years) = $960,000 Definition of Disability: Own Occupation for the length of the benefit period Base Policy Features Nondisabling Injury Benefit $2,000 COBRA Premium Benefit Survivor Benefit Good Health Benefit Presumptive Total Disability Surgical Transplant Benefit Cosmetic Surgery Benefit Rehabilitation Waiver of Premium Optional Riders Selected Enhanced Residual Disability Rider $ Automatic Increase Rider (AIR) Prepared by: Scott Sorrell Rates: Male, Non Tobacco Prepared on: Occupation Class: 6A Issue Age: 45 Issue State: North Carolina Premium: Level Total Annual Premium $1, Semi-Annual $ Quarterly $ Monthly $ *This assumes a maximum potential payout if you are totally disabled for the entire benefit period. Actual benefits will vary based on certain factors, such as age at disability and riders selected. In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE In New York, Disability Income insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY Policy and riders may vary and may not be available in all states. This information is provided by Ameritas, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas, visit ameritas.com. Ameritas and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company Ameritas Mutual Holding Company defoo/ Page 3 of 9

4 Designed for: Gary Sample DINAMIC FOUNDATION Disability Income Insurance Summary Illustration Noncancelable and Guaranteed Renewable Prepared by: Scott Sorrell Rates: Male, Non Tobacco Prepared on: Occupation Class: 6A Issue Age: 45 Issue State: North Carolina Premium: Level Automatic Increase Rider AIR Increased Benefits and Premiums Age Base Monthly Benefit Annual Premium 45 4,000 $1, ,160 $1, ,320 $1, ,480 $1, ,640 $1, ,800 $2, Automatic Increase Rider: This rider is designed to provide for a 4% simple automatic increase in your Base Monthly Benefit, on each policy anniversary, for up to five years. This increase will be made without evidence of insurability and will also apply to the Residual and Cost of Living Adjustment riders (if part of your policy). Declining an increase forfeits your right to future increases. In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE In New York, Disability Income insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY Policy and riders may vary and may not be available in all states. This information is provided by Ameritas, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas, visit ameritas.com. Ameritas and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company Ameritas Mutual Holding Company defoo/ Page 4 of 9

5 Policy Information Thank you for considering Ameritas Life Insurance Corp. for your disability income insurance needs. We believe there is no better way to protect against the financial devastation a disability could cause you and your family. To help you better understand how your Ameritas Life Disability Income Insurance policy can work for you, we have described below the key features and options of your policy. If you have questions about what these features mean to you, contact your agent or call our home office toll-free at Noncancelable/Guaranteed Renewable to Age 65: Until you reach age 65, your policy cannot be canceled, premiums cannot be increased, and restrictions cannot be added, as long as you continue paying premiums as due. Conditionally Renewable for Life: You may renew this policy on each policy anniversary after age 65 for life if you are actively working at least 30 hours each week, you are not receiving a benefit under this policy or any attached rider, and the policy is in force with no premiums in default. When renewing your policy, you will need to submit documentation of your current income and pay the premium due for your age at that time. Base Monthly Benefit: We will pay the Base Monthly Benefit for each month you are totally disabled, under the terms of the policy, due to accident or sickness. Benefits begin after you satisfy the elimination period. Benefits continue as long as you remain totally disabled or to the end of the benefit period you select, if sooner. Own Occupation for the Length of the benefit period (OO): Total Disability or Totally Disabled means that, solely due to a sickness or injury, you are not able to perform the material and substantial duties of your occupation. Your occupation means the occupation or occupations that you were engaged in, based on the duties you were performing for wage or profit, at the time disability began. If you are not employed at the time of disability, your occupation means any occupation you are able to perform based on your education, training and experience. If you are a physician or dentist and have limited your duties to the performance of the usual and customary functions of a specific, professionally recognized medical or dental specialty, we will consider that specialty your occupation. Waiving Physician's Care: While you are disabled, you must be under the regular care and treatment of a physician appropriate for the condition causing disability. We will waive this requirement, if, in the opinion of that physician, continued medical treatment will not improve your condition. Successive Periods of Disability: Successive periods of disability will be considered, as one period if: (a) they are caused by the same or related conditions, (b) they are separated by less than 365 days, and (c) each begins while the policy is in force. The elimination period and benefit period will not restart. Page 5 of 9

6 Exceptions and Limitations: Benefits will not be paid: (a) for a disability caused or contributed by war, declared or undeclared, or any act or incident of war, or as a result of military service when scheduled active duty is more than three months, (b) for a disability resulting from an intentionally self-inflicted injury, (c) during any period you are incarcerated, (d) except as direct result of sickness or injury, if you are prevented from engaging in your occupation as a result of suspension, revocation, or surrender of your professional license or certification, (e) for more than 60 months during the lifetime of the policy for total disability caused by a mental/nervous disorder and/or drug or alcohol abuse, or (f) for more than 12 months during the lifetime of the policy, if you reside outside of the United States. Base Policy Features Nondisabling Injury Benefit: If you suffer an injury requiring medical treatment prescribed by a physician or the repair to natural teeth prescribed by a dentist, we will pay the expense of such treatment, not to exceed the lesser of 50% of the base benefit or $3,000. (Not available for Colorado, Connecticut, Maryland or Massachusetts.) COBRA Premium Benefit: If, you become unemployed due to a disability and, as a result, you are paying COBRA medical coverage premiums, we will reimburse you for those premiums up to $1,000 a month, beginning with the first premium due after you satisfy the elimination period of this policy but not to exceed 18 months. Reimbursement is also available if continuing your employer-group medical plan under the provisions of a state continuation plan. We will not pay more than 100% of the COBRA premium expense incurred monthly, under all policies. Survivor Benefit: Should you die after satisfying the elimination period and while monthly disability benefits are being paid under the policy, we will pay an additional three months of Base Monthly Benefit to your designated beneficiary, if any, otherwise to your estate. Good Health Benefit: For every consecutive policy year you complete without receiving any benefits under the policy, we will reduce the elimination period by two days. In no case will the elimination period be reduced to less than 30 days. Presumptive Total Disability: You will be considered totally disabled if you sustain the complete loss of hearing in both ears, sight in both eyes, speech, or the use of any two limbs. The elimination (waiting) period will be waived, and benefits will be payable for as long as the presumptive disability continues, even if you are working in an occupation. The loss does not need to be permanent or irrecoverable. Surgical Transplant Benefit: After your policy has been in force for 6 months, if a part of your body is transplanted into another person's body and as a result you become totally disabled, we will pay benefits as if the disability was due to a sickness, except that we will waive the elimination period. Cosmetic Surgery Benefit: If a total disability results from cosmetic surgery to correct a disfigurement or to improve your appearance, we will consider you Totally Disabled due to sickness, provided the cosmetic surgery occurs more than six months after the issue date of the policy. Rehabilitation: You can participate in an occupational rehabilitation program without being considered "recovered" from your disability. Moreover, if we approve the program, we will pay for the reasonable expense of the program, subject to our mutual agreement in writing. Page 6 of 9

7 Riders Waiver of Premium: After 90 days and once a claim is approved, we will begin waiving premiums for as long as you are disabled - even beyond the benefit period. We will refund the premiums paid during the elimination period. Enhanced Residual Disability Rider: We will pay you a residual benefit while you are residually disabled if you suffer a loss of at least 15% of your net earned income, and you are able to perform one or more, but not all, of the material and substantial duties of your occupation or you are unable to engage in your occupation for more than 80% of the time as was usual prior to the start of your disability. Recovery Benefit - In the month immediately following a period for which disability benefits have been paid, upon recovery and return to your occupation on a full-time basis, a residual benefit will be paid if you maintain a loss of, at least, 15% of your net earned income and that loss is a direct result of your previous disability. Automatic Increase Rider: This rider is designed to provide for a 4% simple automatic increase in your Base Monthly Benefit, on each policy anniversary, for up to five years. This increase will be made without evidence of insurability and will also apply to the Residual and Cost of Living Adjustment riders (if part of your policy). Declining an increase forfeits your right to future increases. Page 7 of 9

8 Designed for: Gary Sample Premium Alternatives DINAMIC FOUNDATION Disability Income Insurance Summary Illustration Noncancelable and Guaranteed Renewable Prepared by: Scott Sorrell Rates: Male, Non Tobacco Prepared on: Occupation Class: 6A Issue Age: 45 Issue State: North Carolina Premium: Level Definition of Disability: Own Occupation for the length of the benefit period 5 Yr Benefit 10 Yr Benefit To Age 65 To Age 67 To Age Days $2, Base Policy $1, N/A N/A N/A N/A Enhanced Residual Disability $ N/A N/A N/A N/A Automatic Increase $0.00 N/A N/A N/A N/A 60 Days $1, Base Policy $1, N/A N/A N/A N/A Enhanced Residual Disability $ N/A N/A N/A N/A Automatic Increase $0.00 N/A N/A N/A N/A 90 Days $1, $1, $1, $1, $2, Base Policy $ $1, $1, $1, $1, Enhanced Residual Disability $ $ $ $ $ Automatic Increase $0.00 $0.00 $0.00 $0.00 $ Days $ $1, $1, $1, $1, Base Policy $ $1, $1, $1, $1, Enhanced Residual Disability $ $ $ $ $ Automatic Increase $0.00 $0.00 $0.00 $0.00 $ Days $ $1, $1, $1, $1, Base Policy $ $ $ $1, $1, Enhanced Residual Disability $ $ $ $ $ Automatic Increase $0.00 $0.00 $0.00 $0.00 $ Days $ $1, $1, $1, Base Policy N/A $ $ $ $1, Enhanced Residual Disability N/A $ $ $ $ Automatic Increase N/A $0.00 $0.00 $0.00 $0.00 The options shown above reflect changes in the base benefit and elimination period only. However, the SIS elimination period will never be less than the base elimination period. In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE In New York, Disability Income insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY Policy and riders may vary and may not be available in all states. This information is provided by Ameritas, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas, visit ameritas.com. Ameritas and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company Ameritas Mutual Holding Company defoo/ Page 8 of 9

9 EZ App with Simplified Requirements EZ App is an effective alternative to the traditional application process. The EZ App process speeds underwriting time, eliminates redundant medical history and lifestyle questions, and reduces or eliminates the financial and medical requirements that are part of the traditional process. Medical Requirements Ages Mini-Exam* EKG $5,001** N/A $5,001** N/A 51+ $5,001** $10,001 * Mini-Exam includes blood, urine, height, weight, blood pressure and pulse readings. Medical questions are not included in the mini-exam since they are asked during the telephone interview. ** This amount reduces to $4,001 in California. To determine medical requirements, add the base monthly benefit, with the Social Insurance Substitute (SIS) Rider and one-half the Future Increase Option (FIO) Rider. Financial Requirements On the application, provide income for the past three years (includes current year). Business Owners must submit a completed 1040, including all supporting schedules. Traditional Application Process If you choose not to use the EZ App process, you will need to satisfy the requirements as outlined below: Medical Requirements Blood/HOS Paramed EKG $3,000* $5,001** N/A $3,000* $4,001** N/A 51+ $3,000* $2,001** $10,001 To determine medical requirements, add the base monthly benefit, with the Social Insurance Substitute (SIS) Rider and one-half the Future Increase Option (FIO) Rider. * This amount reduces to $1,000 in California. ** This amount reduces to $2,001 in California. Financial Requirements On the application, provide income for the past three years (includes current year). All joint returns require a copy of the W-2 from applicant only. To expedite the underwriting process, please submit an illustration of the desired plan design with the application. Amount* $5,000 or less Amount* Up to $7,500 $7,501 - $14,999 Financial Requirements Financial Documentation Summary Individual DI Ownership Sole Employee Proprietor Partnership S-Corp C-Corp** W-2 and W-2 and 1040 and Schedule E Schedule E W-2 and N/A Schedule C or K-1 or K and Schedule C W-2 and Schedule E or K-1 Financial Requirements W-2 and Schedule E or K-1 $5,001 - $7,500 Paystub or W-2 W-2 and 1120 $7,501 - $14,999 and 1120 Personal $15,000 returns and up and 1120 * Applied for and in force with all companies. All joint returns require a copy of W 2s from the applicant only. ** Form 1120 is not required if applicant owns 20% or less of the C-Corp. Financial Documentation Summary Individual DI Ownership Sole Employee Proprietor Partnership S-Corp C-Corp** W-2 and W-2 and Paystub 1040 and Sched. E Sched. E W-2 and or W-2 Sched. C or K-1 or K $15,000 and up * Applied for and in force with all companies. ** Form 1120 is not required if applicant owns 20% or less of the C-Corp. and 1120 Personal returns and 1120 Page 9 of 9