FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Transcription

1 TM WealthPay Life PRODUCER GUIDE Product Description Prospects Issue Ages Premium / Face Amount Premium Payment Period Fixed premium life insurance with index-linked crediting options, and premium payments provided by a single-premium immediate annuity (SPIA) policy. Annual SPIA payments begin immediately and are guaranteed for the full premium-payment period. Any individuals with either qualified retirement assets or non-qualified low-tax-basis annuities who seek: A means to spread tax impact on those holdings Life policy death benefits paid to beneficiaries upon the insured s death, generally received income-tax free and bypass probate Access to policy loans or penalty-free partial withdrawals Access to accelerated death benefits in event of insured s terminal or chronic illness Single premium paid into a SPIA. Annual SPIA payments pay the life insurance policy premiums. Minimum: $25,000 premium / Maximum: $500,000 face amount without prior approval. Maximum may be lower for clients with other EquiTrust life policies or annuity contracts. 3, 5 or 10 years. Policy is paid-up after all scheduled premiums are paid, assuming no withdrawals or outstanding loans. (10 year period limited to ages 60-75, except Male Tobacco limited to ages 60-70) Single-Premium Immediate Annuity (SPIA) SPIA Payments Death of Insured SPIA Taxation SPIA Cash Surrender Value SPIA Withdrawals SPIA payments are directed to the life policy at the beginning of each contract year for the duration of the selected premium payment period. The SPIA owner designates EquiTrust Life as payee in order to pay the life insurance policy premiums. If the insured dies during the premium payment period, the SPIA beneficiary will receive scheduled, unpaid SPIA payments for the remainder of the period. SPIA payments to the beneficiary will be fully or partially taxable to the beneficiary, subject to the qualified/non-qualified status. The Beneficiary may elect the commuted value of future unpaid SPIA payments in a lump sum as an alternative. A portion of the SPIA payments may be taxable. You may elect to have taxes withheld from SPIA payments. Your election will impact the life policy s face amount. Clients will receive a 1099 annually for any taxable amount. None None available

2 1035 Exchange/Transfer Pending cases which involve a 1035 exchange or transfer from another entity will be held open for 60 days from the date transfer documents are sent. If the funds are not received within 60 days, the case will be closed and the transfer request cancelled. Fixed-Premium Life Insurance Policy Premium Allocation Account Options (Index Based) Account Options (Fixed Rate) Death Benefit Access to Your Death Benefit The owner can select any combination of accounts subject to the minimum requirements. Indicate initial allocation in the Product Disclosure Form. The initial premium allocation instructions must be completed to issue the policy. Must be whole percentages. 1-Year-Point to-point Cap Index Account If the S&P 500 index value at the end of the policy year is greater than the index value at the beginning of the policy year, index credits are based on that increase up to a specified cap. The cap is reset annually. 1-Year Monthly Cap Index Account Index credits are based on the cumulative sum of capped monthly S&P 500 changes over a one-year period. Each of the monthly gains is subject to a cap, but there is no floor on monthly declines. Index credits are calculated on an annual basis and will never be less than zero. The monthly cap is reset annually. 1-Year Monthly Average Participation Index Account Index credits are based on the percentage change of the monthly average S&P 500 over a one-year period, multiplied by the participation rate. The participation rate is reset annually. 1-Year Interest Account A one-year fixed interest rate is set when your policy is issued. The rate is reset annually, and provides a fixed rate that you may prefer for a portion of your assets. The death benefit is the 1) greater of the face amount, less any loan balance or 2) the greater of the Accumulation Value or the minimum Guaranteed Cash Value, multiplied by the applicable minimum death benefit percentage, less any loan balance. In the event of certain health conditions of the insured, a portion of the Death Benefit may be accelerated. The rider is available at no charge and is included with the policy automatically. Rider provisions and availability may vary by state. Benefits may be accelerated for the following conditions: Terminal Illness Benefit The owner may accelerate a portion of the death benefit if the insured is diagnosed as terminally ill, with a life expectancy of less than 12 months. Chronic Care Benefit The owner may accelerate a portion of the death benefit if the insured is diagnosed as chronically ill and it is expected to be permanent. Chronically ill is defined as unable to perform at least two of six Activities of Daily Living for at least 90 consecutive days, or requiring substantial supervision due to severe cognitive impairment. During the premium payment period: Terminal Illness acceleration is limited to 75% of the Death Benefit and Chronic Care is limited to 25% of the Death Benefit; benefits must be taken as a lump sum. After the premium payment period: Up to 100% of the Death Benefit may be accelerated for either condition. For Chronic Care, benefits may be taken as either (1) a lump sum, or (2) a monthly benefit which will payout 100% of the death benefit over 60 months. For lump sum payments, the accelerated amount will be multiplied by a discount factor of 95% for Terminall Illness and 75% for Chronic Illness.

3 Transfers Accumulation Value Min. Guar. Interest Rate Expense Charges Life Policy Surrenders The owner may transfer Accumulation Value between accounts on each policy anniversary. Minimum transfer amount is $2,000. Minimum balance in an account after a transfer is $2,000 if any balance remains. Your policy value will be credited interest based on the accounts chosen. Cost of insurance charges will be deducted annually in all years. The annual policy fee is $75, all years. There is also a per $1,000 annual policy expense charge in years % Policy Expense Charge: Age-based fee per $1,000 of face amount, years Policy fee: $75 per year The life policy can be surrendered (fully or partially) at any time. Partial surrender in excess of a penalty-free withdrawal may be subject to a surrender charge, which is a percentage of Accumulation Value. Year Charge: 1 10% 2 9% 3 8% 4 7% 5 6% 6 5% 7 4% 8 3% 9 2% 10 1% 11+ 0% Life Policy Penalty- Free Withdrawals Loans Taxation/Modified Endowment Contract Taxation of Terminal Illness or Chronic Care Benefits Minimum/Maximum Weight After the first policy year, the owner may take a partial withdrawal from the life policy of up to 5% of the Accumulation Value without a surrender charge each year. If the policy is surrendered in the year of the withdrawal, a surrender charge will be assessed on the free amount. Withdrawals will permanently reduce the death benefit. Withdrawals during the premium-payment period will impact any future premium payments from the SPIA. One withdrawal per year; $25 fee per withdrawal. Loans are available from the life policy. Variable loan interest rate declared at least annually. Contact EquiTrust for the current loan rate. The maximum loan amount is the cash value less loan interest accrued to the next anniversary. A policy may become overloaned and lapse if the loan is not repaid. Waiting period may apply in some states. Most policies will be issued as MECs. Only 10-year premium period policies will be non-mecs. For MEC policies, loans and surrenders are distributed and taxed as income first. Generally, any amount received under a life insurance policy on an insured that is determined to be terminally ill or chronically ill is considered to be an amount paid by reason of death. A Terminal Illness Benefit will generally be received income tax-free, and a Chronic Illness Benefit may be taxable. You should contact a qualified tax advisor regarding taxability of Accelerated Death Benefits. Applicants with body weight outside of the following ranges will not be accepted. Height Minimum Maximum Height Minimum Maximum

4 Pre Qualification Applicant must be a U.S. citizen or carry a valid Green Card. Clients with certain pre-existing conditions are uninsurable and will not be considered for this policy. Before completing an application or collecting premium, ask if the client has experienced any of the following conditions. AIDS/HIV* ALS (Lou Gehrig s Disease) Alzheimer s Cerebral Palsy Coronary Artery Disease in combination with Diabetes Cystic Fibrosis Dementia Down s Syndrome Ebola Huntington s Disease Mental Incapacity/Organic Brain Syndrome Muscular Dystrophy Organ Transplant (other than Kidney donor) Last 10 Years Cardiomyopathy Chronic Obstructive Pulmonary Disease Cirrhosis of the Liver Congestive Heart Failure Coronary Artery Disease Diabetes with insulin use Emphysema/Chronic Bronchitis Heart Valve Replacement Hemochromatosis Hepatitis other than Type A Hydrocephalus (water on the brain) Immune System Disorder Kidney Failure or Dialysis Leukemia/Lymphona Oxygen use (or recommended use) Paralysis (hemiplegia, paraplegia, quadriplegia) Parkinson s Systemic Lupus Last 5 Years Alcohol/Drug abuse Aneurysm Anorexia/Bulimia Cancer or recurrence and/ or metastasis of Cancer Chronic Pancreatitis DWI/DUI Heart Attack Malignant Melanoma Multiple Sclerosis Pacemaker Post Traumatic Stress Disorder Psychosis Schizophrenia/Bipolar Disorder Stroke/TIA Suicide Attempt Tuberculosis Last Year or Less Unexplained loss of over 20 pounds in the past 12 months Unable to perform Activities of Daily Living for 7+ consecutive days during the past 6 months: dressing, eating, ambulating, toileting, or bathing Current hospitalization or confined to a bed/nursing facility Hospice care received or recommended in the last 12 months *HIV is not an uninsurable precondition in CA or CT. Underwriting Interview The applicant is required to participate in a telephone interview. Interviews are conducted on behalf of EquiTrust by a third party, and gathers information such as medical history; occupation; hobbies and sports; tobacco and drug use; prescription medication history. Only English-speaking interviews are available. Your client should be prepared for the interview with the following information: Names and addresses for all physicians Dates of physician and facility visits Current medications and dosages Injury, illness and condition details Social Security number or government-issued identification Call for Phone Interview Now, or Schedule for a Preferred Time You may either make the interview call at the point of sale, or specify on the application s Quick Selling Guide the best time for your client to be contacted. To conduct at the point of sale: As Agent, you must initiate the call. A few questions will be directed to you, then the balance of the interview will be with your client. To conduct later: Indicate on the Quick Selling Guide the best time for your client to be contacted. The interviewer will attempt to call your client at that time. As Agent, you need not be present for the interview.

5 Underwriting Decisions Application Completion llustrations Delivery Receipt Requirement Free Look Period Sales Process Underwriting decisions are generally made within 48 hours of the telephone interview completion and application received at EquiTrust. The applicant will be approved, declined or incomplete. Underwriting alerts will be ed to you, or can be accessed via the EquiTrust Agent Website. Login is required. To change your address for notifications, go to your Profile page on the website. Underwriting decisions will also be posted as Notes in the Pending Business area of the website. Approved: If the interview information is confirmed with no additional information needed, all forms are submitted in good order, premium received, and the policy receives underwriting approval, the policy will be issued within 48 hours. Declined: Application may be declined after underwriting consideration. You will be notified by mail confirmation, and website. All premium received by EquiTrust will be returned within 15 days. Incomplete: Conflicting or inadequate information may make a decision unattainable. Incomplete applications are held up to 60 days, after which cases are closed. Application and supporting forms are printable from the EquiTrust website. AppBuilder allows you to download into a single PDF document all the required and optional forms for your particular sales situation. Go to Agents.EquiTrust.com, select Life Insurance, and click on AppBuilder. Login is required, with your EquiTrust agent code and password. To produce an illustration, go to Agents.EquiTrust.com. Click Life Insurance. Use your agent code and password to login. Then, click Illustrations. Return a signed copy of the illustration and the Illustration Acknowledgement with the application. An Illustration will be included with the policy at delivery. The client-signed Numeric Summary page and Delivery Receipt must be mailed or faxed to EquiTrust. A Delivery Receipt is required on both policies. Mail or fax with signed illustration Numeric Summary page to EquiTrust. After the policies are issued, your client has a specified number of days to review the policies. If they are not completely satisfied with the terms, they may return the policies during this period and receive 100 percent of premium paid, minus amounts taken from the policies. Review the Pre-qualification list and weight chart with your client Calculate the death benefit Complete the application, any applicable forms and run an illustration Arrange the telephone underwriting interview with your client Provide photocopies of all completed and signed forms and illustration to your client To expedite underwriting, fax application, Quick Selling Guide, forms, Illustration Acknowledgement and signed illustration and premium check (or transfer form) to Underwriting decision will be ed to you and accessible on Agents.EquiTrust.com Mail all forms to: EquiTrust Life Insurance Company, P.O. Box 14500, Des Moines, Iowa

6 WealthPay Life is a single premium index life insurance policy issued by EquiTrust Life Insurance Company, West Des Moines, Iowa. Not available in all states. Policy may vary by state. Policy issued on Form Series ICC13-IWL-2000(01-13) with riders ICC14-ETL-ADBR(08-14) and interest/index accounts ICC13-ETL-1YRINT(01-13), ICC13-ETL-1YAVGPART(01-13), ICC13-ETL- 1YP2PCAP(01-13) and ICC13-ETL-1YMC(01-13). WealthPay Life premiums are paid by a single premium immediate annuity contract, issued on Form Series ICC13-ET-SPIA-2000(01-13). The S&P 500 Index is a product of S&P Dow Jones Indicies, LLC. ( S&P DJI ) and has been licensed for use by EquiTrust Life Insurance Company. S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services, LLC. ( S&P ). These trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by EquiTrust Life Insurance Company. WealthPay Life is not sponsored, endorsed, sold or promoted by S&P DJI, S&P, or any of their respective affiliates or third party licensors, and none of such parties make any representation regarding the advisability of purchasing WealthPay Life nor do they have any liability for any errors, omissions, or interruptions of the S&P 500. SALES SUPPORT Standard Mail: EquiTrust Life Insurance Company P.O. Box Des Moines, IA Overnight: EquiTrust Life Insurance Company 7100 Westown Pkwy Suite 200 West Des Moines, IA ETL-WPL-1102 (11-14) EquiTrust 2014