Royal Advantage Term 10, 20, 30-Year Level Premium Term Life Insurance For certificates issued after 12/31/09 Agent Training Guide Not for public distribution
Royal Advantage Term Description Level Premium Term to Age 95 Form series 200711A Certificate can be issued for 10, 20, or 30-year level premium periods Premiums remain level until the end of the level premium period; default to Annual Renewal Term (ART) to age 95 following level premium period Issue Ages Royal Advantage 10 issue ages 16-70 Royal Advantage 20 issue ages 16-60 Royal Advantage 30 issue ages 16-50 Face Amounts $100,000 minimum $4,000,000 maximum $3,000,000 if Premium Waiver Disability (PWD) is included Premiums Premiums can be paid by Pre-Authorized Collection (PAC) or on a quarterly, semi-annual, or annual mode No modal charge on monthly PAC Certificate Fee There is an annual $75 certificate fee (certificate fee is commissionable) Risk Classes Super Preferred Non-Tobacco Preferred Non-Tobacco Standard Non-Tobacco Standard Tobacco Substandard to Table 8 Special is used when the base certificate includes a table rating or a flat extra or when the PWD includes a substandard extra premium; the super preferred and preferred premium class cannot have a flat extra, a table rating, or a substandard rider. Riders Available Premium Waiver Disability (PWD) Accelerated Living Benefit Premium Waiver Disability Rider Form series 8062 Rider available age 16-55 Royal Advantage 10 Rider available age 16-55 Royal Advantage 20 Rider available age 16-50 Royal Advantage 30 Disability must begin prior to insured s age 60 If premiums are still being waived, the certificate may be converted to a whole life certificate chosen by Royal Neighbors at any time and will automatically be converted at end of level period or certificate anniversary immediately prior to age 70 and premiums will continue to be waived If premiums are not being waived under PWD rider, the PWD rider will expire on the certificate anniversary at end of PWD term PWD rider may be added after issue during the level premium period with evidence of insurability premium for rider based on age of insured when rider is added PWD must be added prior to the maximum issue age for the level premium period (55 for the 10 and 20-year level premium period and 50 for the 30-year level premium period) Accelerated Living Benefit Rider Form series 1766 Rider available age 16-70 Royal Advantage 10 Rider available age 16-60 Royal Advantage 20 Rider available age 16-50 Royal Advantage 30 Cannot be added after issue No additional charge for rider (in states where rider is approved) Qualifying Events terminal condition/permanent nursing home confinement - If insured s death is expected within 12 months or insured is permanently confined to a nursing home as definded in rider Up to 75% of the face amount can be accelerated (minimum $5,000, maximum $250,000) An accelerated payment creates an interest-bearing lien on certificate Interest and premiums on the certificate lien will not be waived Rider may not be available in all states or may have certain restrictions Rider terminates at death of insured or termination/expiration of the certificate to which the rider is attached Rider has no cash value cont d
End of Level Premium Period At the end of the level premium period the insured has the choice of continuation of the certificate on an ART basis (default), re-applying for, or conversion of the certificate Prior to the end of the level premium period Royal Neighbors intends to notify insured of the option and explain the default of continuing it on an annual renewable term basis with increased premiums unless the insured chooses otherwise prior to the end of the period Annual Renewable Term Premiums increase annually until certificate anniversary of the insured s attained age of 95 at which time the certificate expires without value If the certificate contained a PWD rider, the rider will continue on an attained age scale until the anniversary nearest the insured s age 60 If the certificate contained an Accelerated Living Benefit rider, the rider would continue when the certificate goes to annual renewable term Re-entry An insured may apply for a new certificate; a new application would be required, the premium would be at the attained age, the insured would be re-underwritten, and there may be a possible change in the premium class; any rider added would also require evidence of insurability Conversion The latest conversion date of the certificate is the earlier of the end of the level premium period or the last anniversary on or before the insured s age 70 Certificate can be converted to any permanent insurance without evidence of insurability and not more than the death benefit of this certificate and not less than the minimum amount required for the plan selected; permanent insurance includes whole life products or universal life products; it does not include term products If a Level Premium Term certificate contains a PWD rider and the premiums are not being waived, the PWD rider can be converted to a new certificate; proof of good health would not be required for the conversion of the PWD If premiums are being waived under the PWD rider, the Level Premium Term certificate can only be converted to a whole life certificate of Royal Neighbors choosing; premiums would continue to be waived on the new certificate If the Level Premium Term certificate has a lien due to the Accelerated Living Benefit, the amount converted would be the face amount minus the lien Income Replacement Settlement Option Owner selects monthly payments for a specified period of time instead of selecting to receive a lump-sum death benefit - The owner has the option of selecting an initial lump sum (1-6 times the monthly payment) Available with - Royal Advantage 10 - Royal Advantage 20 - Royal Advantage 30 Must be selected at time of application PWD rider available Accelerated Living Benefit rider not available Settlement option interest rate is set at time of death guaranteed not less than 3% If rate is higher than 3% monthly benefit amount increased accordingly Example $1,000 per month for 120 months (10 years) and a $6,000 lumpsum payment at time of death. Total benefit of $126,000. Owner purchases face amount of $109,762. Loan No loan option is available on the Level Premium Term certificate (except as required by state) Death Benefit The death benefit of the Level Premium Term certificate is the face amount minus any amount advanced plus accrued interest for the Accelerated Living Benefit rider; any unpaid premiums if death occurs during the grace period would also be deducted from the amount payable and premiums paid in advance would be added Termination The Level Premium Term certificate will terminate without value when the certificate lapses, is exchanged, or is converted cont d
Royal Advantage Term Underwriting Guidelines These guidelines will help you classify risks quickly and as accurately as possible in a field situation. Be sure to include all the names of doctors, medications, hospitals, and treatments used by your client. The date of last illness and the nature and severity of the illness should be recorded. Always include the last date seen by a doctor or hospital and the reason for the visit. Underwriting Requirements: Application Form 1725 (with state variations) Check for other state specific requirements Height Male Weight Average Standard Maximum Standard Maximum Preferred Maximum Super Preferred Height Female Weight Average Standard Maximum Standard Maximum Preferred Maximum Super Preferred Feet Inches Feet Inches 5 0 131 184 161 156 4 10 100 140 120 115 1 134 189 165 160 11 102 144 124 119 2 137 193 169 164 5 0 105 147 129 124 3 141 199 173 168 1 107 151 133 128 4 145 204 178 173 2 110 154 137 132 5 149 210 183 178 3 113 159 142 137 6 153 215 189 184 4 116 163 146 141 7 157 221 195 190 5 119 168 150 145 8 161 227 200 195 6 122 172 154 149 9 165 232 206 201 7 126 177 159 154 10 170 239 212 207 8 129 182 163 158 11 174 245 217 212 9 132 186 167 162 6 0 179 252 223 218 10 136 191 172 167 1 183 258 228 223 11 139 196 176 171 2 188 265 235 230 6 0 143 202 181 176 3 193 272 242 237 1 146 212 185 180 4 199 280 248 243 2 150 218 189 184 5 204 287 255 250 3 154 224 194 189 6 210 296 262 257 4 159 230 198 193 7 216 305 266 261 5 163 237 203 198 8 221 314 272 267 6 168 244 208 203 Underwriting Conditions If any of the following conditions are present, no application should be submitted: AIDS, ARC (Aids Related Complex) Chronic Active Hepatitis or Kidney or Renal Failure, including dialysis Alzheimer s Disease/Dementia Cirrhosis of the Liver Severe Psychotic Disorder Angina unstable Congestive Heart Failure Not a U.S. resident Cancer within the last year or cancer Demyelinating disease, such as Lou Gehrig s Not a U.S. citizen or no green card that has metastasized (except skin cancer) Disease (ALS) or Muscular Dystrophy Travel to countries under State Department Advisory
Royal Advantage Term Underwriting Guidelines Super Preferred Preferred Standard Tobacco No tobacco use for 5 years* No tobacco use for 3 years* NA Family History No cardiovascular disease or hereditary type cancer in either parent or siblings prior to age 60 No death from cardiovascular disease or hereditary type cancer in either parent or siblings prior to age 60 NA Cholesterol/ HDL Ratio May not exceed 5.0 (without treatment) May not exceed 6.0 Levels 6.1-8.5 Cholesterol Level Blood Pressure Alcohol/Substance Abuse Driving History May not exceed 220 (without treatment) No history of treatment; may not exceed 140/85 No history No DUI, DWI, or reckless driving in the past 5 years; no more than 1 moving violation in the last 3 years May not exceed 240 Levels 241-299 Currently controlled; current and historic readings over last two years may not exceed 145/88 No history in the past 10 years No DUI, DWI, or reckless driving in the past 5 years; no more than 2 moving violations in the last 3 years Currently controlled; current and historic readings over last two years may not exceed 150/92 No history in the past 5 years No DUI, DWI, or reckless driving in the past 2 years; no more than 3 moving violations in the last 3 years Aviation Not available for private pilots Private pilots given individual consideration For private pilots an extra premium may apply Avocation Ratable avocation: Not available Ratable avocation: Not available Extra premium may apply Military Retired/inactive only Individual consideration Individual consideration Note: Certain medical conditions may disqualify applicant from preferred rates. * Includes the use of nicotine replacement therapy
Royal Advantage Term Underwriting Guidelines The following chart outlines the requirements needed to facilitate the underwriting of all submitted life insurance applications. Refer to product guidelines for specific age limits and minimum face amounts. Issue Age $100,000- $249,999 $250,000- $999,999 $1,000,000- $1,499,999 $1,500,000- $4,999,999 $5,000,000+ 0-17 Rx Rx, APS IC IC Not Accepted 18-39 Rx, PM, MVR Rx, PM, MVR Rx, PM, MVR Rx, PM, MVR, IR Rx, PM, IR, MVR, APS 40-54 Rx, PM Rx, PM, MVR Rx, PM, EKG, MVR Rx, PM, IR, EKG, MVR Rx, PM, IR, ST, MVR. APS 55-65 Rx, PM Rx, PM, MVR Rx, PM, EKG, MVR, APS Rx, PM, IR, ST, MVR, APS Rx, PM, IR, ST, MVR, APS 66+ Rx, MA Rx, MA, EKG, MVR Rx, MA, EKG, MVR, APS Rx, MA, IR, Rx, MA, SB, IR, *ST, MVR, APS *ST, MVR, APS The amount is based upon the total amount of coverage applied for, issued, and placed in force with Royal Neighbors of America. We reserve the right to order additional requirements as needed to make a risk assessment. APS: Attending Physician Statement/Medical Records (May also be requested at other age/face amounts as required) EKG: Electrocardiogram IC: Individual Consideration; contact Underwriting prior to writing application IR: Inspection Report MA: Mature Assessment, Paramed exam, Blood Profile/Urinalysis NM: Non-Medical MVR: Motor Vehicle Report PM: Paramed exam, Blood Profile/Urinalysis Rx: Prescription Profile SB: Special Blood - NTPro-BNP ST: Stress Test EKG (*UW authorization required before ordering stress test at age 66+)
+$75.00 Annual policy fee Initial Level Premium Term Life Insurance to Age 95 10-Year Term
+$75.00 Annual policy fee Initial Level Premium Term Life Insurance to Age 95 20-Year Term
Initial Level Premium Term Life Insurance to Age 95 30-Year Term +$75.00 Annual policy fee Premium Bands Band 1 $100,000-249,999 Band 2 $250,000-499,999 Band 3 $500,000+
Royal Neighbors of America Insurance with a Difference SM As a non-profit fraternal organization, Royal Neighbors of America exists for the benefit of its members. It offers insurance products to fulfill a variety of needs for growth, savings, and protection. Members also receive valuable member benefits and can participate in volunteer activities through the organization s local chapters to make a difference in their communities. The organization s philanthropic efforts are dedicated to changing women s lives through its national programs and through the Royal Neighbors Foundation, a 501(c)(3) charity. Get to know us: Since 1895, Royal Neighbors of America has been dedicated to insuring lives, supporting women, and serving communities. We were founded by nine strong, independent, and visionary women who wanted to empower women and those they cared about. Through local chapters, our more than 225,000 members work together to direct our national resources to causes that make a difference in their communities. We began giving back as early as 1906 when we gave financial aid and hands-on assistance to victims of the San Francisco earthquake. More recently, our financial help has made a difference to those affected by natural disasters such as Hurricanes Hugo, Rita, and Katrina; the Parkersburg, IA, tornado; and the Midwest floods. In a crowded industry of look-alike insurance companies, one name stands out from the rest. Royal Neighbors of America is Insurance with a Difference SM.
Royal Neighbors of America www.royalneighbors.org (800) 770-4561, Option 1 Form 2990-B; Rev. 2-2011