Uncover the True Cost of Short-duration Options

Transcription

1 Uncover the True Cot of Short-duration Option We tend to quote term life inurance annually, but thi may not be the bet way to determine the lowet priced option. The majority of policyholder elect to pay premium monthly. 1 So why not quote thi way? Even though the annual cot may be lightly higher with a monthly payment chedule, quoting monthly rate can help how the real cot of hort-duration option. Conider the following quote for 20 year of coverage: When quoted annually, Lincoln, Legal & General and NACOLAH are the lowet coting option. Protective Life PRODUCT Protective Cutom Choice UL RANK MONTHLY MONTHLY MONTHLY RANK IZED MONTHLY $907 5 $ $936 SBLI of MA T - Term $905 4 $ $945 Lincoln LifeElement Term $900 1 $ $945 Legal & General OPTerm $900 1 $ $945 NACOLAH ADDvantage Term $900 1 $ $950 AIG Select-A-Term $924 7 $ $959 MetLife Guaranteed Level Term $909 6 $ $982 $500,000 Face Amount, Male, age 50, 20-year guarantee, elect preferred Data for product and company comparion i baed on a baic policy comparion of Protective Cutom Choice UL to the competitor lited with level premium for 20 year; i baed on information publicly available from the company which i believed to be current a of May 10, 2016, and i ubject to change. If you quote monthly premium and then conider the annualized premium rate, ee how the rank change. Protective Cutom Choice UL diplay a lower premium than the competition. Plu, the annualized monthly premium for the three original low cot option increaed by $45 and $50! Check out why you hould conider Protective Cutom Choice UL over a traditional term policy on the back ide. Additional Information on Revere Side. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

2 PROTECTIVE Thing to think about before elling term life inurance: Shocking, riing premium after level term period Limited policy option for converion to a permanent plan Only a 30-day grace period Policy fee i excluded before your commiion calculation Limited option to cutomize coverage Why Protective Cutom Choice UL may be a better option: Reliable, level premium after level death benefit period if client till want coverage Several policy option available for evidence-free exchange to another permanent plan* Longer 61-day grace period Fee aren t excluded before your commiion calculation, offering an opportunity for higher compenation Option to cutomize coverage with income tream for beneficiarie * Within the firt 20 year and before age 70 Change your approach, and ell what matter! Contact your BGA or the Protective Life Sale Dek to requet an illutration and learn more about Protective Cutom Choice UL , option Monthly wa the mot common premium mode for all policie placed at Protective Life in If underwriting criteria i atified for Protective Cutom Choice UL, the propoed inured may qualify for the rate hown. Different premium payment mode have different premium amount. More frequent payment mode typically require higher premium. The level premium period may be extended beyond the initial level benefit period, however the face amount will begin to decreae annually until it reache $10,000 at which point premium will begin to increae. Thi i a hypothetical example. For current information on Protective Life Inurance Company product, pleae ue ELI or contact our ale dek for an illutration pecific to your client. Protective Cutom Choice UL (UL-22) i a univeral life inurance policy iued by Protective Life Inurance Company, Birmingham, AL. Policy form number, product feature and availability may vary by tate. Conult policy for benefit, rider, limitation and excluion. Subject to underwriting. Up to a two-year contetable and uicide period. Benefit adjuted for mitatement of age or ex. In Montana, uniex rate apply. All payment and all guarantee are ubject to the claim-paying ability of Protective Life Inurance Company. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

3 Tailor a Life Inurance Strategy to Protect Mortgage Debt Life inurance i about protection, helping to cover thing like burial and final expene and recurring or future expene. One uch expene i mortgage loan debt. Typically, you would match a term life inurance policy with the amount and duration of a mortgage loan, but thi may not addre every need. There another way to tailor a trategy for more flexibility here how it work for a male client, age 35, who jut refinanced hi $375,000 mortgage for 30 year: TYPICAL 30-TERM STRATEGY STRATEGY MORE FLEXIBLE 20-YEAR UNIVERSAL LIFE STRATEGY YEAR LEGAL & GENERAL OPTERM MORTGAGE DEATH BENEFIT 1 $375,000 $375,000 $427 5 $339,178 $375,000 $ $295,440 $375,000 $ $242,036 $375,000 $ $176,829 $375,000 $ $97,212 $375,000 $ $0 $375,000 $ $0 $375,000 $13,928 CUMULATIVE (year 1-30) $12,810 YEAR PROTECTIVE MORTGAGE DEATH BENEFIT 1 $375,000 $500,000 $337 5 $339,178 $500,000 $ $295,440 $500,000 $ $242,036 $500,000 $ $176,829 $500,000 $ $97,212 $110,677 $ $0 $59,962 $ $0 $54,109 $337 CUMULATIVE (year 1-30) $10,110 Data for product and company comparion i baed on a baic policy comparion of Protective Cutom Choice UL to Legal and General product with level premium for 30 year. Thi i baed on information publicly available from the company which i believed to be current a of May 2016 and i ubject to change. Mortgage APR 4%. The client get $125,000 more death benefit for lower premium Even when the death benefit tart to decreae after year 20, the amount i till enough to cover outtanding mortgage debt. Thi trategy cot 21% le over time than the traditional term approach. Additional Information on Revere Side. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

4 Change your approach, and ell what matter! Provide your client with more coverage for le money, and help them tailor a life inurance trategy providing mortgage loan protection for loved one. For more information contact your BGA or the Protective Life Sale Dek , option 1 * After the initial benefit period end, the guaranteed death benefit will begin to decreae while the premium payment remain level. The death benefit amount will decreae each year until it reache the minimum of $10,000. At that point, premium will increae each year. Thi cae tudy i hypothetical and for illutrative purpoe only. Each individual ituation will be different baed on the age, ex and health tatu of the inured. Different planned premium frequencie will require different total annual premium amount. More frequent planned premium will typically require higher premium payment to be made. Lape protection guarantee the policy death benefit for the duration of the guarantee and doe not cover cah or urrender value. Loan, withdrawal, and other policy and premium change will affect the cot and length of protection. Failure to make premium payment a planned may caue the policy to loe lape protection, and premium required to retore it could be ignificantly higher. Refer to the policy and endorement for complete term, condition and limitation. Protective Cutom Choice UL (UL-22) i a univeral life inurance policy iued by Protective Life Inurance Company, Birmingham, AL. Policy form number, product feature and availability may vary by tate. Conult policie for benefit, rider, limitation and excluion. Subject to underwriting. Up to a two-year contetable and uicide period. Benefit adjuted for mitatement of age or ex. In Montana, uniex rate apply. All payment and all guarantee are ubject to the claim-paying ability of Protective Life Inurance Company. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

5 Short-duration Protection with Premium Flexibility Many client chooe term life inurance becaue it an affordable, imple way to meet protection need. Did you know Protective Cutom Choice UL alo meet thi need, but with even more flexibility to tailor a payment chedule to meet unique need? See how thi work for Joe, a 45-year-old buine executive who want to enure life inurance coverage for hi family until hi daughter are finihed with college. Working with hi life inurance profeional, he purchae a $500,000 Protective Cutom Choice UL policy with a 10-year initial level death benefit period. The flexibility of thi olution allow Joe to et up a payment plan where he can pay le the firt five policy year when hi cah flow i lower, becaue he till paying college tuition for hi daughter. Beginning in year 11, Joe annual premium adjut downward again and remain level, while hi death benefit amount begin to decreae, a hi inurance need decreae. POLICY YEAR DEATH BENEFIT 1 5 $500,000 $ $500,000 $ $278,252 $ $180,732 $ $103,698 $ $ 58,679 $ Joe pay a higher annual premium in year 6-10, an eaier undertaking for him now that college tuition i behind him. If Joe decided he needed to maintain hi $500,000 in coverage for more than 10 year, he could chooe to exchange the policy to a new permanent policy.* 30 $ 32,208 $ $ 10,294 $ $10,000 $ Effective a of January Aume male age 45, Preferred Non-Tobacco. * Thi option i available at the end of the initial level benefit period, or anytime in the firt 20 policy year up to age 70. Once Joe death benefit ha reached $10,000, it will no longer reduce. However, the annual premium to maintain the policy begin to increae. Additional Information on Revere Side. PLAG.3420 (01.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

6 Change your approach, and ell what matter! Contact your BGA or the Protective Life Sale Dek to find out more about Protective Cutom Choice UL, an affordable, competitive life inurance olution for hort- or long-term need , option 1 Thi cae tudy i hypothetical and for illutrative purpoe only. Each individual ituation will be different baed on the age, ex and health tatu of the inured. Different planned premium frequencie will require different total annual premium amount. More frequent planned premium will typically require higher premium payment to be made. For current information on Protective Life Inurance Company product, pleae ue our ELI oftware or contact our ale dek for an illutration. Protective Cutom Choice UL (UL-22) i a univeral life inurance policy iued by Protective Life Inurance Company, Birmingham, AL. Policy form number, product feature and availability may vary by tate. Conult policie for benefit, rider, limitation and excluion. Subject to underwriting. Up to a two-year contetable and uicide period. Benefit adjuted for mitatement of age or ex. In Montana, uniex rate apply. All payment and all guarantee are ubject to the claim-paying ability of Protective Life Inurance Company. PLAG.3420 (01.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

7 Coverage for Short-term Need, Without the Shock of Riing Premium Client buy term life inurance becaue it an inexpenive way to meet hort-term need. But they re often hocked, frutrated, and in danger of laping their policy when they face riing premium and limited converion option at the end of the term period. Help client avoid thi cenario by elling a univeral life policy that cover hort-term need, but alo provide freedom to live without worry that coverage may uddenly and dratically increae. What happen after 15 year with term life inurance? At firt glance, you may chooe thi option becaue of it lightly lower cot in year But look at how the annual premium increae ignificantly in year 16 while the death benefit remain level. Premium continue to increae each year thereafter. POLICY YEAR CLIENT AGE LEGAL & GENERAL OPTERM 15 FACE AMOUNT % INCREASE PRICE PER $1, $500,000 $1,008 n/a $ $500,000 $11,915 1,329% $ $500,000 $13,535 11% $ $500,000 $15,240 12% $ $500,000 $17,025 14% $ $500,000 $19,470 14% $38.94 $500,000, Female, 50, Standard Non-tobacco, 15-year Level Death Benefit Period Data for product and company comparion i baed on a baic policy comparion of Protective Cutom Choice UL to Legal & General product with level premium for 15 year then ART guaranteed premium with coverage to age 60; i baed on information publicly available from the company which i believed to be current a of May 2016 and i ubject to change. What happen after 15 year with Protective Cutom Choice SM UL? POLICY YEAR CLIENT AGE PROTECTIVE CUSTOM CHOICE SM UL FACE AMOUNT % INCREASE PRICE PER $1, $500,000 $1,014 n/a $ $199,476 $1,014 0% $ $179,272 $1,014 0% $ $164,935 $1,014 0% $ $151,647 $1,014 0% $ $139,240 $1,014 0% $7.28 $500,000, Female, 50, Standard Non-tobacco, 15-year Level Death Benefit Period * After the initial benefit period end, the guaranteed death benefit will begin to decreae while the premium payment remain level. The death benefit amount will decreae each year until it reache the minimum of $10,000. At that point, premium will increae each year. In year 16, annual premium remain level while the death benefit decreae, uually when need are decreaing anyway. Coverage can continue up to a lifetime with no change to the client out-of-pocket cot.* The value of paying the extra penny Client could ave $0.01 per thouand in year 1-15 with OPTerm. Mot people wouldn t top to pick that up on the treet. But would they have paid the extra penny if they knew what would happen down the road with their coverage? Additional Information on Revere Side. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

8 Thing to think about before elling term life inurance: Shocking, riing premium after level term period Limited policy option for converion to a permanent plan Only a 30-day grace period Policy fee i excluded before your commiion calculation Limited option to cutomize coverage Why Protective Cutom Choice UL may be a better option: Reliable, level premium after level death benefit period if client till want coverage Several policy option available for evidence-free exchange to a permanent plan* Longer 61-day grace period Fee aren t excluded before your commiion calculation, offering an opportunity for higher compenation Option to cutomize coverage with income tream for beneficiarie Change your approach, and ell what matter! To learn more or requet a quote, contact your BGA or the Protective Life Sale Dek , option 1 * Within the firt 20 year and before age 70 If underwriting criteria i atified for Protective Cutom Choice UL, the propoed inured may qualify for the rate hown. Different premium payment mode have different premium amount. More frequent payment mode typically require higher premium. The level premium period may be extended beyond the initial level benefit period, however the face amount will begin to decreae annually until it reache $10,000 at which point premium will begin to increae. Thi i a hypothetical example. For current information on Protective Life Inurance Company product, pleae ue ELI or contact our ale dek for an illutration pecific to your client. Protective Cutom Choice UL (UL-22) i a univeral life inurance policy iued by Protective Life Inurance Company, Birmingham, AL. Policy form number, product feature and availability may vary by tate. Conult policy for benefit, rider, limitation and excluion. Subject to underwriting. Up to a two-year contetable and uicide period. Benefit adjuted for mitatement of age or ex. In Montana, uniex rate apply. All payment and all guarantee are ubject to the claim-paying ability of Protective Life Inurance Company. PLAG (05.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

9 5 Fact You Abolutely MUST Conider Before Selling Another Term Policy 5FACT FACT FACT FACT FACT A traditional term policy in t the only way to provide low cot, hort-duration coverage for your client. Protective Cutom Choice SM UL offer affordable hortor long-term coverage for about the ame or le annual premium than other traditional term policie, plu unique, flexible feature and benefit. Before you ell another term policy, check out thee five important fact you abolutely MUST conider: Client can pend le and buy exactly what they need. Many carrier offer pre-et level death benefit period like 15 or 20 year. But with Protective Cutom Choice UL, client can chooe a pecific time period, only paying for the year of coverage they need. (17 year of coverage, anyone?) No ticker hock here: annual premium remain level after the initial level death benefit period end. Unlike traditional term policie that can pike ignificantly in price after the coverage period, Protective Cutom Choice UL unique deign allow the premium to remain level after the initial death benefit period. At thi point, the death benefit tart to gradually decreae, 1 uually when the policy holder life inurance need are decreaing anyway. Flexible, affordable, evidence-free policy exchange option are available. Within 20 year or before age 70, client can exchange their Protective Cutom Choice UL policy without additional underwriting for everal currently marketed Protective Life policie. At the time of exchange, client may alo chooe to add our indutry leading rider, like ExtendCare (additional underwriting may be required) and Income Provider Option to meet pecific need. There i an opportunity for higher agent compenation. Many traditional term policie include a policy fee that i deducted from premium amount prior to calculating agent compenation. But with Protective Cutom Choice UL, agent have the opportunity for higher compenation becaue any aociated fee are not excluded from the compenation calculation. Suppoe Protective Life and another term carrier both offer a policy with a $500 premium, but the term carrier charge a $60 policy fee. Agent elling Protective Cutom Choice UL are eligible for compenation on the full $500 premium. If the term carrier i like mot other, the policy fee of $60 would firt be deducted, and compenation would be baed on the reduced amount of $440. Client are le likely to lape their policy hould they need more time to pay premium. Protective Cutom Choice UL boat a premium grace period twice a long a mot traditional term policie. Client have day 1 through 30 to pay their premium, a uual. At day 31, traditional term policie lape, but with Protective Cutom Choice UL, client have another 30 day to pay premium with additional interet. 1 The death benefit amount will decreae each year until it reache the minimum of $10,000. At that point, premium will increae each year. Additional Information on Revere Side. PLAG (01.16) For Financial Profeional Ue Only. Not for Ue With Conumer.

10 Change your approach, and ell what matter! Contact your BGA or the Protective Life Sale Dek to find out more about Protective Cutom Choice UL, an affordable, competitive life inurance olution for hort- or long-term need , option 1 Protective Cutom Choice UL (UL-22) i a univeral life inurance policy iued by Protective Life Inurance Company, Birmingham, AL. Policy form number, product feature and availability may vary by tate. Conult policie for benefit, rider, limitation and excluion. Subject to underwriting. Up to a two-year contetable and uicide period. Benefit adjuted for mitatement of age or ex. In Montana, uniex rate apply. All payment and all guarantee are ubject to the claim-paying ability of Protective Life Inurance Company. Income Provider Option (UL-E35) i an endorement available only at iue on certain UL product iued by PLICO. Actual term and condition contained in the product policy and the endorement govern benefit provided. A portion of periodic payment may be reported a taxable income to the beneficiary. Conumer hould conult their attorney or tax advior regarding their individual ituation. Pleae ee the endorement for more detailed information. May not be available in all tate or on all currently-marketed UL product. State variation may apply. ExtendCare rider (Form ICC12-L630 and L630) aume medical and financial underwriting qualification at time of initial application, i available only at iue and at an additional cot. Actual term and condition contained in the rider govern all benefit provided. Pleae ee the rider for more detailed information. The ExtendCare rider fall under IRC Sec. 101(g) Accelerated Death Benefit guideline and doe not fall under health regulation. Thi differentiation could affect eligibility for public aitance program uch a Medicaid, Supplemental Income, or other. Purchaer hould conult a qualified advior along with legal or tax advior to determine if the rider will affect their initial or continued eligibility for public aitance program or other tax-related deciion. The ExtendCare Rider i intended a a non-medical upplement to traditional long-term care policie and rider. Neither Protective Life nor it repreentative offer legal or tax advice. Individual hould conult their attorney or tax advior regarding their individual ituation.all payment and all guarantee are ubject to the claim paying ability of Protective Life Inurance Company. PLAG (01.16) For Financial Profeional Ue Only. Not for Ue With Conumer.