Safe G ard. Consumer Brochure. A Single Premium Universal Life Insurance Policy Policy Form ICC and State Variations

Transcription

1 NWL Safe G ard Select Consumer Brochure A Single Premium Universal Life Insurance Policy Policy Form ICC and State Variations National Western Life Insurance Company 850 East Anderson Lane, Austin, Texas DM-1317

2 Life can be unpredictable, and flexibility is important, especially when it comes to your financial assets. At NWL, we understand that even with the most careful planning, growth of funds deposited in IRA s, annuities, or other tax-deferred investments can potentially be eroded due to the imposition of applicable income and estate taxes. NWL SafeGuard Select allows you to increase and leverage your assets into an income tax-free life insurance policy for your beneficiaries. Increase the value of your wealth by giving your heirs what you have worked so hard for! Access Your Money When You Need It Should circumstances change, you can surrender your policy for the Surrender Value, which is the greater of (1) the Cash Value or (2) the current Return of Premium Value less any Loans and Loan interest. Cash Value - The Cash Value is equal to the Account Balance minus any Loans and Loan interest. Return of Premium Value - After the Policy Date, the Return of Premium Value is equal to the premium paid minus any proportional reductions due to other rider benefit payments. Account Balance - The Account Balance on the first Monthly Anniversary is equal to the Single Premium paid less a percentage of premium load minus the Monthly Deduction and any rider premiums, accrued at the current monthly interest rate. On each Monthly Anniversary thereafter, the Account Balance is equal to the preceding Monthly Anniversary Account Balance minus the Monthly Deduction, accrued at the current monthly interest rate. The Monthly Deduction is equal to the monthly cost of insurance charges, plus a monthly administration charge, plus the monthly expense charge. 1 of 5

3 Let s Examine How the NWL SafeGuard Select Could Increase the Assets You Transfer to Heirs: Example 1: Steven worked very hard to become a successful entrepreneur. He started several startup companies that have now grown into flourishing businesses, thereby allowing him to live very comfortably while also saving a substantial amount of money for retirement. Several years ago, Steven took $100,000 of the proceeds from the sale of one of his businesses and invested in the stock market. Over the past five years, that investment has dropped to $50,000 due to poor market performance. Steven, now 45 years old and a nonsmoker, has wisely decided to allocate his remaining funds towards the purchase of a single premium life insurance plan. Using the NWL Safeguard Select life insurance policy, he will be able to turn his $50,000 into a $151,285 guaranteed Death Benefit* for his heirs. $160,000 $151,285* In Summary $140,000 $120,000 $100,000 $80,000 $60,000 $100,000 Original Savings 5 YEARS $50, HOURS** NWL Safeguard Select Transfer The NWL Safeguard Select Strategy Increases assets transferred to heirs Guarantees a Death Benefit to Age 121* Allows for policy surrender for the greater of the Cash Value or current Return of Premium Value (less any loans and loan interest) Provides access to the Cash Value via policy loans $40,000 $20,000 Current Savings $0 Example 2: Theresa decided to purchase an NWL Safeguard Select life insurance policy with a $250,000 single premium that guaranteed her, as a 70-year-old non-smoker, a Death Benefit of $431,406 to age 121.* Theresa never married but was intent on providing for her niece, Anna, who had lost both of her parents at a young age and had gone on to live with Theresa in her teens. Theresa wanted to ensure that Anna s financial future would be secure with an income tax-free death benefit. However, if circumstances should change and Theresa finds that she needs $500,000 $400,000 $300,000 $200,000 $100,000 $250,000 Theresa Single Premium $431,406 Death Benefit Income Tax-Free Nest Egg For Anna access to cash from her policy, assuming there no outstanding policy loans, Theresa can surrender her policy for the Surrender Value. $0 * Death benefit guaranteed until the Policy Anniversary after the Insured s 121st birthday, assuming no loans that would cause policy to lapse due to insufficient Cash Value to pay the Monthly Deduction. The Death Benefit will be reduced due to the loans and accelerated benefit rider payments, if any. ** Processing time may vary depending on underwriting and issue requirements. 2 of 5

4 Settlement Options Instead of payment in a lump sum, the proceeds from the Surrender Value, or Death Benefit proceeds of this policy, may be paid under one of the following settlement options: 1. Income for Life 2. Life Income with a Guaranteed Period 3. Life Income with Installment Refund 4. Payments for a Fixed Period not to exceed 30 years. 5. Proceeds Held at Interest only for a specified period not to exceed 30 years. The amount applied to an option must be at least $2,000 or provide periodic payments of at least $20. The interest rate for all options is 1.00% per year, compounded annually. Excess interest may be allowed at our discretion. Consult the Policy for complete details of these options. As always, you should consult your tax and legal advisors to determine if this Option is the right strategy for you. 3 of 5

5 NWL SafeGuard Select Highlights Product Type Fixed Interest Single Premium Universal Life Issue Ages $25,000 Minimum $250,000 Max Net Amount at Risk Face Amount Issue Ages $25,000 Minimum $150,000 Max Net Amount at Risk Net Amount at Risk is equal to the face amount less the premium Issue Ages Minimum Guaranteed Interest Rate Included Riders and Benefits (No additional Cost of Insurance as it is accounted for with your single premium.) Not available in all states. Accelerated Benefit Rider for Terminal Illness* (Form ICC ) Living Benefit Rider* (Form ) Paid Up Life Insurance Rider (Form ICC and state variations) 1.00% Provides an advance of a portion of the Death Benefit to the policy owner if insured is terminally ill, subject to the terms of the rider. The maximum benefit is equal to the lesser of $250,000 or 75% of the death benefit minus loans and unpaid loan interest, or $500,000 less the total of all elected benefit amounts under the policy. A one-time claims processing fee of up to $300 may apply. Prevents the policy from lapsing if the Loan Balance is about to exceed the Account Balance in the policy by providing a Paid Up Face Amount of life insurance if: (1) the Loan Balance is at least 91.5% of the Account Balance; (2) the policy has been in force for a minimum of 15 years; and (3) the Insured s attained age is at least 75 years when the first two criteria are met. A one-time charge is made at time of Paid Up election. Optional Riders Not available in all states Accelerated Benefit Rider** (Form and state variations) Note: If this Accelerated Benefit Rider is elected, the Living Benefit Rider ( ) will not be included. Accelerated Death Benefit Rider for Chronic Illness** (Form ICC ) Advances a portion of the Face Amount (FA) if insured needs Qualified Care Services or is terminally ill. Maximum ABR Benefit: (1) for Qualified Care Services is 2% of FA paid monthly, not to exceed $10,000; (2) for Terminal Illness is lesser of $250,000 or 75% of FA minus loans and unpaid loan interest. Not available for tobacco users ages Accelerates a portion of the Death Benefit to policy owner if insured has been certified by a physician to have a permanent chronic illness that has lasted at least 90 consecutive days. Maximum benefit is the lesser of either 24% of Death Benefit per year or $120,000; or the lesser of 2% of Death Benefit per month or $10,000. Not available for tobacco users ages Loan Option Settlement Options You may borrow up to the Cash Value (less monthly deductions to the next anniversary). An outstanding loan may cause the policy to lapse if the cash value is not sufficient to pay the next monthly deduction. You may obtain a loan with a 6.54% loan interest rate paid in advance. 5 different settlement options available from the Surrender Value or Death Benefit proceeds. *Only one Benefit Rider is available in each state; please ask your agent for details. **Only one Accelerated Benefit Rider is available in each state; please ask your agent for details. 4 of 5

6 Limitations and Exclusions Suicide: Within two years (one year in North Dakota) 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, less any loans, loan interest, and any rider accelerated benefits. Incontestability: After this policy has been in force during the lifetime of the Insured for two years from the Policy Date, we will not contest it for any reason except for rider provisions relating to disability benefits or additional benefits in the event of accidental death. Any increase in the Face Amount will be incontestable after the increase has been in force during the lifetime of the Insured for two years after the effective date of the increase. Any policy reinstatement will be incontestable after it has been in force during the lifetime of the Insured for two years after the effective date of reinstatement. Delayed Payment of Cash Surrender or Policy Loan: The Company has the right to delay the payment of any cash surrender or the payment of a loan (unless the loan will be used to pay premiums), for a period of up to six months. Misstatement of Age or Sex: If the age or sex of the Insured has been misstated, the benefit payable will be adjusted to that which would be purchased by the most recent monthly deductions at the correct age or sex. About the Company National Western Life Insurance Company is a Colorado corporation with executive offices in Austin, Texas. The Company offers a full line of life insurance and annuity products through independent agency offices in 49 states and the District of Columbia, and accepts applications from residents of several foreign countries. Visit our website for all current financial information. Since its start in 1956, National Western has emphasized financial strength for the protection of its policyholders. As a legal reserve insurance company, National Western must set aside a portion of its assets equal to reserves required by law. Annually, a financial statement is filed with each state's insurance department. These departments have authority to verify that the appropriate reserves are maintained. Ask your agent for a policy illustration. Client Services Toll Free