Riders and Options Guide

Transcription

1 Riders and Options Guide Riders and Options Available for Our Product Line 500NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18

2 Riders and Options Guide Unfortunate events can alter your clients financial future. There is a way, though, to help protect their plans. As you know, life insurance provides a death benefit to help with the financial protection of loved ones upon death. But life insurance offers many other benefits. This guide helps explain the riders and options available on North American Company s products*, which your clients may be able to utilize while they are alive. ADDvantage Builder IUL Custom Guarantee Guarantee Builder IUL Rapid Builder IUL Builder Plus IUL Survivorship GIUL Accidental Death Benefit for UL Accidental Death Benefit for IUL Children s Term Insurance 1 Estate Preservation Guaranteed Insurability for UL Guaranteed Insurability for IUL Waiver of Monthly Deductions 2 Waiver of Surrender Charge 3 Waiver of Term Premium for Disability 4 *Legacy Optimizer s features are built into the policy so it does not have riders or options. 500NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18 2

3 NORTH AMERICAN RIDERS AND OPTIONS AT-A-GLANCE Accidental Death Benefit for UL Accidental Death Benefit for IUL Children's Term Insurance Product Custom Guarantee Builder IUL, Guarantee Builder IUL Rapid Builder IUL, and Builder Plus IUL ADDvantageTerm, Custom Guarantee UL, Builder IUL, Guarantee Builder IUL, Rapid Builder IUL, and Builder Plus IUL Rate Class Table 6 or better Standard or better No rating restrictions on primary insured. Child must be standard rating class Description Pays a benefit upon insured's death if directly caused by accidental bodily injury and occurs within 90 days of the date of the injury. Provides additional death benefit for the insured if death was a direct result of accidental bodily injury, independent of disease or bodily or mental illness or any other cause, and occurs within 180 days from the date of the injury and the injury occurs while the policy and this rider were in effect. Provides level term insurance on the life of each child the insured has. If proof of death is received while the rider is in effect, the specified death benefit will be paid out to the beneficiary. The death must occur while the child is at least 15 days old and before the Policy Anniversary following the child's 23rd birthday. Issue Ages 15 days to 65 years 5 to 60 years Based insured 18 to 55 years; child ages 15 days to 20 years (age last birthday) Maturity or Expiration Policy age 70 Expires on the policy anniversary following the insured's 70th birthday or on the expiry date of the policy, if earlier Policy anniversary following child's 23rd birthday or insured's age 65 Minimum Amount $10,000 $1,000 $5,000 Maximum Amount Lesser of base policy or $200,000 Lesser of twice the face amount of the policy or $250,000 $25,000 Rider Details Can only be added at issue (no increases or additions after issue) Decreases allowed, but minimum death benefit is $10,000 Not available above a Table 6 Allowed if base policy has a flat extra due to medical reasons, not allowed with flat extras for nonmedical reasons Rider can be attached to a policy with level or increasing death benefit option (rider does not increase if attached to an increasing death benefit option policy) Can be added at issue No decreases allowed Available on all death benefit options Specific exclusions apply. Refer to rider form for complete details. Can be added or deleted at any time (subject to insurability) The child, named in the application for insurance, was born to, adopted by, or a stepchild of the insured The child is less than 20 years old on the Rider Effective Date Conversion to permanent policy: The Policy Anniversary following the Insured Child s 23rd birthday; or The Policy Anniversary when the Insured s Policy Age is 65; or On or after the later of the fifth Policy Anniversary and the Insured Child s 18th birthday Minimum conversion amount per child is $25,000 and maximum is $50,000. *See summary page for additional information 500NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18 3

4 NORTH AMERICAN RIDERS AND OPTIONS AT-A-GLANCE Estate Preservation Guaranteed Insurability Rider for UL Guaranteed Insurability Rider for IUL Product Rate Class Description Survivorship GIUL Up to table 6 per insured Increases the death benefit if both insured's deaths are within 4 years of the issue date. Custom Guarantee Standard or better Builder IUL, Guarantee Builder IUL, Rapid Builder IUL, and Builder Plus IUL Provides the option to increase death benefit coverage by a specified amount without evidence of insurability on the policy anniversaries nearest the insureds specific ages identified as outlined by the rider. Available at issue only. Issue Ages 20 to 75 years (joint equal age) 15 days to 40 years 15 days to 35 years Maturity or Expiration Expires at the end of year 4 Matures 60 days after the last regular option date Matures 60 days after the last regular option date Minimum Amount $200,000 $1,000 $5,000 Maximum Amount $10,000,000 The lesser of the policy s total specified amount at issue; or $50,000 $25,000 4-Year Last-to-Die available at issue only Death Benefit amount is 125% of base plan (for increases, the death benefit amount doesn t increase. Therefore, the 125% ratio is no longer true once an increase has occurred on a policy.) Rider amount is not included in underwriting requirements Issue Ages 15 days - 22 years Regular increase option dates on the policy anniversary nearest Options Available Regular Option Ages 23, 26, 29, 32, 35, 38, 41, 44, 47, 50 26, 29, 32, 35, 38, 41, 44, 47, 50 29, 32, 35, 38, 41, 44, 47, 50 Issue Ages 15 days - 24 years Options Available Regular Option Ages 25, 28, 31, 34, 37, 40 28, 31, 34, 37, 40 31, 34, 37, , 35, 38, 41, 44, 47, , 37, 40 Rider Details , 38, 41, 44, 47, , 41, 44, 47, , 44, 47, 50 Alternate option dates available when any of the following occurs after the effective date of the rider: first marriage of the insured a child is born to the insured the insured adopts a child under the age of 18 To exercise an alternate option, the insured must send a written request within 60 days prior to the Regular Option Date. The effective date of the increase amount will be the option date on which the insurance is requested. The monthly deduction for an increase will begin on the effective date. An option not used on its option date will expire. This expiration will not affect later option dates & 40 Alternative option dates available when any of the following occurs after the effective date of the rider: Date of the Insured s marriage, civil union, domestic partnership, or any other arrangement recognized by the Insured s state of residence as a legal union. Date of the birth or legal adoption of a child which lives with and is financially dependent on the Insured. To exercise an alternate option, the insured must send a written request within 60 days prior to the Regular Option Date or 60 days after an Alternate Option Date occurs. If an Alternate Date would occur after the 28th calendar day of a month, the Alternate Option Date will be the Monthly Anniversary next following our receipt of your written request. 500NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18 4

5 NORTH AMERICAN RIDERS AND OPTIONS AT-A-GLANCE Waiver of Monthly Deductions Waiver of Surrender Charge Waiver of Term Premium for Disability Product Custom Guarantee, Builder, Guarantee Builder, Rapid Builder and Builder Plus IUL Rapid Builder IUL & Survivorship GIUL ADDvantage Term Rate Class Standard or better. Available at issue only. All rate classes Not available if the policy is rated higher than Table 4. Available at issue only. Description Waives monthly COIs, monthly loads, administrative fees and any other rider charges, after the insured has been totally disabled for 180 days. Election of this option removes all surrender charges that are normally applied on surrenders and partial withdrawals. Table shaving is allowed up to Table 3 with this option on the Rapid Builder IUL (NOT the Survivorship GIUL) years for face amounts up to $5M and years for face amounts up to $1M. Allows premium payments to be waived if insured is totally disabled. Benefit becomes effective when insured has been totally disabled for 180 days Issue Ages Maturity or Expiration 18 to 59 years (age nearest or age last depending on product) The waiver will end on the policy anniversary nearest the insured's 65th birthday. Exception to this expiry date is if the insured is disabled at age 65 and remains disabled, the waiver will continue. 15 days to 80 years 18 to 59 years (age nearest) NA 65 Minimum Amount N/A $100,000 N/A Maximum Amount Maximum face amount eligible for this benefit is lesser of $2,000,000 or $40,000 of target premium. The $40,000 of target premium does not include the Waiver of Monthly Deductions. N/A N/A Rider Details Immediate written notice must be given once the insured has recovered from the disability. Monthly deductions will become due after recovery from the total disability. Monthly deductions will resume on the next monthly anniversary following the receipt of the written notice. *See summary page for requirements for disability Must be elected at issue only and in order to qualify for this option, you must select this option on the application before underwriting begins. Surrender charges will still apply if the policy is surrendered as a 1035 exchange to another company (except in FL where we will waive surrender charges on these exchanges). A decrease charge will be assessed if a reduction in the policy face amount is requested during the Waiver of Surrender Charge Period. However, if a partial withdrawal results in a reduction of the face amount, the decrease charge will be waived. Table shaving won t apply to anything beyond Table 3 and cannot be used to move an insured into a Preferred class. Flat extras will remain on the case. There is an additional expense for this option which varies by issue age. Specific exclusions apply. Refer to Rider Form. To approve a total disability claim, we require that the rider be in effect and: Total Disability begins after the Effective Date of this Rider and before Policy Age 65; and we receive due proof that the Insured has been Totally Disabled for at least 180 consecutive days. (The premium will not be waived for Total Disability beginning on or after Policy Age 65). *See summary page for requirements for disability Not available on UL s and IUL s in CA. * See summary page for commission/chargeback options Not available in CA 500NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18 5

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8 Additional Details 1 Children s Term Insurance Rider Any additional child that was not born to, adopted by or is a stepchild of the Insured on the Rider Effective Date is considered an Insured Child if such child meets any of the following requirements: 1. The child is born to the Insured after the Rider Effective Date OR 2. The child is adopted by the Insured after the Rider Effective Date and the child is less than 20 years old at the time of the adoption OR 3. The child becomes a stepchild of the Insured after the Rider Effective Date and the child is less than 20 years old at the time of the Insured s marriage. (For purposes of this rider, marriage includes civil unions, domestic partnerships or any other arrangement recognized by the Insured s state of residence as a legal union. A Stepchild is a child born to or adopted by the Insured s spouse before the Insured s marriage, whom the Insured has not legally adopted.) 2 Waiver of Monthly Deductions For approval of a claim for benefits under this rider, the following must take place: During the first 24 months after Total Disability begins, the Insured is unable to perform the principal duties of his own occupation; thereafter, the insured is unable to perform the duties of any occupation for which the Insured is qualified by reason of education, training, or experience. Occupation includes full-time student and homemaker. The total and irrevocable loss of the following will be regarded as Total Disability whether or not they prevent the Insured from engaging in any occupation or business; the sight in both eyes; or the use of both hands; or the use of both feet; or the use of one hand and one foot. 3 Waiver of Surrender Charge Option Policies with this option will have lower commissionable target premiums; Commission Chargeback s may be applicable for surrenders, partial withdrawals, and death benefit decreases, depending on the commission option that was elected and when the distribution or decrease takes place. Refer to product specifications for details. 4 Waiver of Term Premium for Disability Requirements for Disability: For approval of a claim for benefits under this rider, the following must take place: The client must send the company written notice and proof of claim that the insured has been totally disabled The disability must have continued for 180 consecutive days The insured is under the regular care of physician Policy must be in force. If policy is written within the grace period when the insured becomes totally disabled, enough premiums must be paid to restore the policy to in force status before a claim will be considered. We will waive the payment of each premium due for the Policy and any attached Riders. If Total Disability begins before Policy Age 60, we will waive the payment of each premium that becomes due after 180 consecutive days of Total Disability while the Insured continues to be Totally Disabled; or If Total Disability begins on or after Policy Age 60, we will waive the payment of each premium that becomes due after 180 consecutive days of Total Disability for the longer of (a) or (b), where: (a) is the period of time prior to the Policy anniversary on which the Insured reaches Policy Age 65 (b) is a period of two years. During the first 24 months after Total Disability begins, the Insured is unable to perform the principal duties of his own occupation; thereafter, the insured is unable to perform the duties of any occupation for which the Insured is qualified by reason of education, training, or experience. Occupation includes full-time student and homemaker. The total and irrevocable loss of the following will be regarded as Total Disability whether or not they prevent the Insured from engaging in any occupation or business; the sight in both eyes; or the use of both hands; or the use of both feet; or the use of one hand and one foot. ADDvantage Term is issued on policy form series LS174; Builder IUL is issued on policy form series LS172; Custom Guarantee UL is issued on policy form series LS170; Guarantee Builder IUL is issued on policy form series LS175; Rapid Builder IUL is issued on policy form series LS176/LS176W with Waiver of Surrender Charge Option; Builder Plus IUL is issued on policy form series LS183; and Survivorship GIUL is issued on policy form series LS171/LS171W with Waiver of Surrender Charge Option. Accidental Death Benefit Rider is issued on form series LR370A for Custom Guarantee UL; and form series LR493 Children s Term Insurance Rider is issued on form series LR456; Estate Preservation Rider is issued on form series LR461; Guaranteed Insurability Rider is issued on form series LR373A for Custom Guarantee UL and form series LR495; Waiver of Monthly Deduction Rider is issued on form LR416B; Waiver of Term Premium for Disability Rider is issued on form series LR472 for ADDvantage Term; by North American Company for Life and Health Insurance, Administrative Office, One Sammons Plaza, Sioux Falls, SD Products, features, riders, endorsements or issue ages may not be available in all jurisdictions. Limitations and restrictions may apply. Please note: not licensed in New York NM FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 4/18