AGENT GUIDE Path Protector Term Life A5669 (8/15) This guide is for agent use only and not intended for distribution to customers.
Path Protector Series Welcome Table of Contents Thank you for choosing Illinois Mutual as your life insurance carrier. As a service-driven business partner, Illinois Mutual can be an essential part of your long-term success. For more than 100 years, we have focused on delivering the best personal service to our policyowners and our distribution partners with respect and integrity. Illinois Mutual helps people achieve and safeguard their financial security by providing competitive life insurance, disability income insurance and workplace insurance solutions. Illinois Mutual Delivers 3 4 5 6 8 10 11 Advantages of Path Protector Term Life The Fast, Simple, Seamless Sales Process Return of Premium Term Policy Features Optional Benefits and Riders Illinois Mutual s Agent Forum POWERPitch 5G Software Illinois Mutual focuses on financial strength because we know its importance to our customer commitments. Illinois Mutual strives to assure that products are competitive, advances in technology are made, and online resources available through our Agent Forum and customer website enhance your business capabilities. At Illinois Mutual, we are always interested in understanding our agents better and offering the service and support they need to succeed. See what our agents are saying about Illinois Mutual at www.illinoismutualnow.com. 2
Path Protector Term Life Term Life Selling Points and Uses Life insurance is a powerful financial product that can help your clients keep their financial commitments to their loved ones if something should happen to them. Term life insurance is generally the lowest premium life insurance available, which allows your clients to acquire coverage at an affordable cost while covering a variety of protection needs on both a personal and business level. Path Protector Term Life (Form 614) is a guaranteed premium term life insurance policy, renewable to age 95. Premiums are guaranteed level for the initial term period of 10, 15, 20 or 30 years. The policy may be renewed after the initial term period at annually increasing rates until age 95. Advantages of Path Protector Term Life Maximum amount of coverage for minimum amount of cost Ideal for specified period of time Flexible coverage periods Can be renewed without proving insurability Can be converted to a permanent policy without proving insurability Provides a financial bridge when protection need is high and budget is restricted Flexibility for Your Client s Future As life changes, so do your client s needs. With Path Protector Term Life, coverage may be continued after the initial term period on an annually renewable basis until age 95. Most importantly, as long as your client continues paying premiums, he or she has the option to convert to a permanent life insurance plan through the earlier of the 20 th policy year or age 70 without evidence of insurability. For example, if you have a client who has a specific protection need, such as a mortgage or children in college, he or she can utilize a term policy in the short term. Then, as you get to know your client and his or her long-term goals, it may lead to a conversion as protection needs change. You can also help your younger clients who may have limited incomes acquire term life protection and then convert down the road as their financial outlook improves. These are just a couple of examples of how the flexibility of Path Protector Term Life can help your clients. Think of your book of business, and you ll likely find clients such as these who can benefit from conversion privileges. 3
Path Protector Series Offer Your Busy Clients the Fast, Simple, Seamless Sales Process They Want! In today s fast-paced market, consumers want solutions delivered quickly with little hassle. They are looking for a Fast, Simple, Seamless sales process. Path Protector Term Life provides your clients with the opportunity to obtain $25,000 to $250,000 of term coverage with Illinois Mutual without routine underwriting requirements, such as exam, blood profile, urinalysis or EKG for issue ages of 18 to 65, if MIB and prescription history are acceptable.* Not having to visit with an insurance examiner can make life easier and get you paid faster! FAST SIMPLE SEAMLESS Complete the application process faster with our web application tool, WebApp. Create a proposal and WebApp will transfer your data directly to the application! Fully completed applications result in a faster underwriting decision. Sign and submit electronically over the web. Applicants ages 18 to 65 can obtain $25,000 to $250,000* of term coverage with Illinois Mutual with simple underwriting using an MIB check, MVR, and prescription history. If results are acceptable, no other underwriting exams are required this means no paramedical exam, blood profile, urinalysis, or EKG! Use our teleunderwriting program. Don t allow another sale to slip through your fingers close the deal today with completion of the application s Part B right at the point of sale. Your clients will appreciate the convenience of doing business with you! Your Client: Path Protector Term Life Policy 35-year-old male, PNT, $150,000 20-year term policy = $19.80 monthly premium** If your client is healthy, no exam, no blood profile, no urinalysis, no EKG. Get the policy issued faster! *Additional underwriting requirements apply: (i) to applicants aged 66 or older; (ii) to applicants with total coverage in force and applied for with Illinois Mutual exceeding $250,000; or (iii) if indicated by MIB, Rx data check, or other information developed during underwriting. Contact the Home Office Sales Department for further details. **May vary by state. For illustration purposes only. Subject to underwriting. Contact your Life sales team for details. 4
Path Protector Term Life Return of Premium Term Path Protector Return of Premium Term offers the best of both worlds life protection if your clients need it, and money back if they don t. Return of Premium Term (Form LRPT15) is available for face amounts of $25,000 to $250,000. If the policy is in force when the initial term period ends and its terms have been met, 100% of the Returnable Premium will be paid back to your client as a Return of Premium Endowment Benefit! The maximum Returnable Premium amount is the sum of the annual premiums your client has paid from the time he or she first purchased the policy through the last day of the initial term period. Additional premiums paid for riders, supplemental benefits, and rated policies are not included in Returnable Premium calculations.* The Return of Premium Endowment Benefit can be used for whatever your clients need from providing cash to help your clients make the transition to retirement to helping with mortgage or business loan payoffs. * The amount payable as the Return of Premium Endowment Benefit will be reduced by any outstanding loans, any paid Accelerated Benefit, and any accrued interest. 5
Path Protector Series Path Protector Term Life Policy Features Issue Ages*: (Age Last Birthday) 18 to 75, 10-Year Plan 18 to 65, 15-Year Plan 18 to 60, 20-Year Plan 18 to 50, 30-Year Plan Banded Premiums: $25,000 to $49,999 $50,000 to $99,999 $100,000 to $250,000 $250,001 to $499,999 $500,000 to $999,999 $1,000,000+ Underwriting Classes: Insurance Amount $25,000 to $99,999 Standard, Non-Tobacco User Standard, Tobacco User Insurance Amount $100,000 to $250,000 Preferred, Non-Tobacco User Standard, Non-Tobacco User Standard, Tobacco User Insurance Amount $250,001+ Super Preferred, Non-Tobacco User Preferred, Non-Tobacco User Ultra Standard, Non-Tobacco User Standard, Non-Tobacco User Preferred, Tobacco User Standard, Tobacco User Path Protector Return of Premium Term Policy Features Issue Ages: (Age Last Birthday) 20-Year Plan 18 to 60, Non-Tobacco 18 to 55, Tobacco 30-Year Plan 18 to 50, Non-Tobacco 18 to 45, Tobacco Banded Premiums: $25,000 to $99,999 $100,000 to $250,000 Underwriting Classes: Insurance Amount $25,000 to $99,999 Standard, Non-Tobacco User Standard, Tobacco User Insurance Amount $100,000 to $250,000 Preferred, Non-Tobacco User Standard, Non-Tobacco User Standard, Tobacco User No Policy Fee Payment Mode Factors Monthly Authorized Check/EFT 0.088 Quarterly 0.265 Semi-annual 0.515 Annual 1.0 *For WA: 18 to 70, 10-Year Plan; 18 to 60, 15-Year Plan; 18 to 50, 20-Year Plan; and 18 to 50, 30-Year Plan. Exceptions for 30-Year option: Male, Standard Tobacco, 18 to 47 for bands under $100,000, and Male, Standard Tobacco, 18 to 49 for bands $100,000 and above. No Policy Fee 6
Path Protector Term Life Applicable to Both Term and Return of Premium Term Premium Information Premiums are level and guaranteed for the initial period. The initial premiums are based on: Issue age of the insured s age last birthday Gender Tobacco use Underwriting classification Premium period selected Premium band based on insurance amount selected On the anniversary at the end of the level term period, annual renewable term rates will be used to maintain coverage to age 95. Conversion Option Path Protector Term Life is fully convertible during the entire conversion period which begins on the issue date of the policy and extends through the 20th policy year, or to age 70, if earlier. Insurance may be converted to a permanent life policy by the owner while the policy is in force during this period. Accelerated Death Benefit Rider (Policy Form 5357) This rider (termed Total and Permanent Disability Benefit Rider in MI), which is automatically included with Path Protector Term Life where available, offers an accelerated payment of life insurance proceeds to an insured suffering from a terminal illness. The Accelerated Benefit is an amount not exceeding the lesser of the following: The amount shown on the policy schedule or 75% of the death benefit, minus the sum of any outstanding loans and any unpaid loan interest To receive this benefit, satisfactory evidence that the insured s life expectancy is 12 months or less must be provided. A one-time administrative charge of up to $250 may be applied. Minimum benefit payment is $5,000. Interest will accrue on the accelerated payment amount at the same interest rate as the policy s loan rate. Refer to Rider Form 5357 for your state for full disclosure of terms. Not available in MS, NJ and TX. 7
Path Protector Series Optional Benefits and Riders Disability Waiver of Premium Rider (Policy Form 491-R) This rider waives the premium, including rider premiums, during the total and permanent disability of the covered insured. The disability must be in existence for six consecutive months before the waiver is activated. Benefits will be retroactive to the date of disability. This rider is available at an additional cost. Coverage to insured s age 60. If the date of disability is prior to the policy anniversary on which the insured is age 60, benefits can continue to the date the policy expires. The rider terminates at the earlier of: a) termination of the policy, b) death of the insured, c) policy anniversary following the insured s 60th birthday, or d) when any premium for this benefit or for the policy is not paid when due or within the grace period. Total and permanent disability shall mean a disability caused by accidental bodily injury which is sustained or by disease which first manifests itself while this Benefit is in force. Such disability must totally and continuously prevent the Insured from performing substantially all of the duties of any occupation for wage or profit in which he might reasonably be expected to be engaged with due regard to his education, training, experience and prior standard of living. However, during the first 24 months of any period of disability, total and permanent disability shall mean disability which totally and continuously prevents the Insured from performing substantially all of the duties of his occupation. Being a student is considered performing an occupation. A disability which has continued without interruption for at least 6 months shall be deemed to be permanent. However, this will only be for the purpose of determining the start of our liability. Not available in CA. Issue Ages: 18 to 55 Termination Limit: The insured s attained age 60 8
Path Protector Term Life Child Insurance Rider (Policy Form 5235) The Child Insurance Rider provides level term insurance to age 25 on the insured s children listed on the application and children born to or adopted by the insured while the policy and rider are in force. Issue Ages: Insured age 18 to 70 Children Ages 0 to 18 Termination Limits: Coverage may be terminated at the earlier of: The policy anniversary following the last covered child s 25th birthday The policy anniversary following the insured s 70th birthday Conversion of the insurance on the life of the last covered child Issue Limits: One unit equals $1,000 of insurance coverage on each covered child Minimum number of units: 1 unit ($1,000) Maximum number of units: 20 units ($20,000) Annual premium rate is $6 per unit. Waiver of Premium applies to the Child Insurance Rider when the base policy has Waiver of Premium Conversion Limits: This rider may be converted on the policy anniversary following the insured child s 25th birthday up to the lesser of 5 times the amount of coverage or $50,000 without evidence of insurability, to any plan of insurance, except term, then being issued. 9
Path Protector Series Register for the Agent Forum The Agent Forum is open to all agents licensed with Illinois Mutual, or those who have contact with the Home Office but are not appointed. Sign up for the Agent Forum on our website at www.illinoismutual.com by clicking on Agents link and following the directions. In just three simple registration steps, you have immediate access to the Agent Forum and can get started on the following: 1. Create customized illustrations with fully integrated capabilities to our extensive Resource Library. 2. Synchronize your POWERPitch 5G data so you can access your information from any computer. 8. Review your clients in force policies to ensure they are up-to-date with the products they need. 9. Access key Company updates, announcements and important information. 3. View a comprehensive snapshot of your business activity on your personalized dashboard. 4. Grant administrative assistants the right to generate quotes, access client data and more. 5. Access hundreds of successful sales ideas, powerful marketing tools and more than 500 electronic forms that can help you increase your business. 6. Receive immediate Notices of Underwriting Actions (NUAs) by email for the fastest possible notification of underwriting status. Register for the Agent Forum Today! 7. Check your commission statements and learn how you can earn even more. 10
Path Protector Term Life POWERPitch 5G Software Highlights Provides you with everything you need to sell our disability income and term, whole life and universal life insurance products. You can access this web-based illustration tool through the Agent Forum or contact us for an offline version. Utilizes a modern, highly intuitive, tab-based user interface with interactive controls. Enables you to easily include others you work with in the selling process. 5G QUOTE Use your iphone or Android-based smartphone with Internet connectivity to run quotes and email them to your prospects anytime, anywhere. Run a 5G QUOTE not only for our traditional life insurance products, but also our disability income insurance product Personal Paycheck Power. Review and follow up on your previous quotes. WebApp Submit electronic applications over the web using our new WebApps: Automatically populates clients information by pulling directly from the illustration. Results in a faster underwriting decision by promoting a fully completed application. Sign and submit electronically over the web. Fillable PDF Application Transfer information entered in an illustration directly to a pre-populated PDF with one click! Speeds up sales process by eliminating manual completion of an entire application. Marketing Materials Illinois Mutual offers a variety of materials to help you market life insurance to your clients. From sales ideas, brochures and handouts to sales presentations, you have access to a variety of tools both online through the Agent Forum of our website at www.illinoismutual.com or through our Supply Department. Sales and Underwriting Teams Our dedicated regional Life sales team is here to help you with every aspect of your Life sale. Contact the team for product or sales-related questions, proposals, forms, and marketing materials. Our underwriters are just a phone call away, too. Contact the underwriter working on your pending case or call them to discuss a potential case. Both the Sales and Underwriting Teams can be reached at (800) 437-7355. 11
Path Protector Series Path Protector Term Life STRENGTH Our strong capital position is backed by $1.38 billion in assets, a surplus of $201.8 million, and a surplus to asset ratio of 14.6%. STABILITY We have been in business for over 100 years. As of 6/30/15 VALUES We are a family-operated business for five generations. SUPPORT We are a mutual insurance company that focuses on the interests of our policyowners. We conduct business with a long-term strategic view. Policy Form 614, Renewable Term To Age 95 Policy Form LRPT15, Term Endowment Life Insurance Policy Form 491-R, Supplemental Benefit Providing Disability Waiver of Premium Policy Form 5235, Child Insurance Rider Policy Form 5357, Accelerated Death Benefit Rider Not available in AK, DC, HI, MT, or NY. Coverage and availability may vary in other states. For policy costs and details of coverage, limitations, exclusions and terms, contact Illinois Mutual. Illinois Mutual, its agents and representatives may not give legal or tax advice. An accountant or attorney should be consulted regarding individual circumstances. A5669 (8/15) Agent Use Only