2 Death Insurance or Life Insurance for Life? Most life policies should be called “death” insurance. With the policy we offer through Transamerica, we can help protect your family through life’s unpredictable changes – we call it Life Insurance for Life!Most life policies should be called “death” insurance. We offer a policy that gives you living benefits and a death benefit – so it is Life Insurance for Life!!
3 What Can Happen to You? You may become Terminally or Critically Ill HEART ATTACKAbout every 34 seconds, someone in the United States has a myocardial infarction (heart attack).1STROKEOn average, a stroke occurs every 40 seconds.2CANCERA new cancer is diagnosed every 30 seconds in the United States.3Read slide1. “About Heart Attacks” American Heart Association. 12 June (24 April 2012).2.“Impact of Stoke” American Stoke Association. 18 April (24 April 2012).3. “Cancer Facts & the War on Cancer” National Cancer Institute (24 April 2012).
4 The chance of survival… Yet, what about financial survival?Nearly half of people whose families have been affected by cancer say the costs of cancer care were a burden on their family, including one in six who say such costs were a MAJOR burden.2One in eight people with advanced cancer turned down recommended care because of cost.3 The cost of a severe heart attack – including direct and indirect costs – is about $1 million.41.5 million Americans will declare bankruptcy this year and 60% are due to medical bills.5Heart Attack – 60%Stroke – 70%Breast Cancer – 87%Prostate Cancer – 98%1What is amazing with all of the medical technology is that the chance of survival is very high for critical illnesses (read stats). However, people are often surprised at the “Financial” cost of a critical illness (read stats)1. “Critical Illness Statistics” Pinney Insurance Center, (13 April 2012). .2. “National Survey of Households Affected by Cancer” The USA Today/Kaiser Family Foundation/Harvard School of Public Health, November (13 April 2012).3. Study: Many cancer patients forgoing care because of cost,” USA Today, 2008.4 Shaw LJ, Merz CNB, Pepine CJ, et al. The Economic Burden of Angina in Women With Suspected Ischemic Heart Disease: Results From the National Institutes of Health National Heart, Lung, and Blood Institute-Sponsored Women's Ischemia Syndrome Evaluation. Circulation. August 29, ;114(9):5. “The Real Risk That You’ll Have a Critical Illness” Facts About Critical Illness Insurance Coverage and Costs, (13 April 2012).
5 What Can Happen to You? You may become Chronically Ill Chronic Illness affects many people and can create additional expenses for a family. Some of these expenses may include:Nursing Home Cost for a Private RoomFor nursing home care, the national monthly average isnow $6,266, which translates into $75,190 annually. 1Assisted Living FacilityFor assisted living facilities the national monthly averageis now $3,185, which translates into $38,220 annually.1Home Health Aide (Certified)For Home Heath Aide, the national monthly average isnow $3,623, which translates into $43,472 annually. 1Read slide1. Cost of Care Survey, Genworth 2012
6 The Worst Can Happen. You may die too soon The proportion of U.S. adults with life insurance protection has declined to an all-time low as percent (95 million) of U.S. adults have no life insurance at all.1And half of U.S. households now believe they are underinsured.2Read slide1. Facts About Life 2011, LIMRA, 2011.2. “Household Trends in U.S. Life Insurance Ownership. 11 January (24 April 2012).
7 Terminal Illness Accelerated Death Benefit Rider Terminal illness is determined when the insured is certified by a licensed physician as being terminally ill and is expected to die within 12 months of such diagnosis.This rider allows the insured to accelerate up to 100% (max of $500,000) of the policy’s death benefit in the event of a terminal illness.Read slide
8 Chronic Illness Accelerated Death Benefit Rider Chronically ill is being unable to perform 2 of 6 activities of daily living (bathing, continence, dressing, toileting, eating, and transferring) without assistance from another person or being severely cognitively impaired for 90 consecutive days or more.Additional Info:Can accelerate up to 24% of death benefit annuallyMax lifetime benefit is 90% or $500,000, whichever is less1The policy must be in-force for 2 years before benefits are availableBathingDressingToiletingEatingContinenceTransferringRead slide1 May vary by jurisdiction.*The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $500,000
9 Critical Illness Accelerated Death Benefit Rider Allows the owner to access the death benefit if the insured is critically illCritical Illness includes heart attack, stroke (does not include TIAs), Internal cancers and Melanoma, End-stage renal failure, Major organ transplant, Amyotrophic lateral sclerosis (ALS), Blindness due to diabetes or Paralysis due to loss of two or more limbsCan accelerate up to 90% of death benefit (Maximum of $500,000)Read slide*The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $500,000
10 What normally happens when you suffer a Critical or Chronic Illness? ExpensesIncomeWhen you suffer a critical or chronic illness – two things usually happen – incomes goes down and expenses go up.
11 Income vs Expenses DEBT Additional Funds From Living Benefits!!! Your Family’s IncomeDEBTTime offWorkRecovery TimeThis example that shows what may happen when you experience a chronic or critical illness. Everyone’s goal in life is to have their income higher than their expenses. Two things may happen when you have a chronic or critical illness. One is that your income goes down. You are going to have time off of work and you will need time to recover. The second thing that may happen is that you will have increased expenses. Even if you have the best health insurance policy available, you will have co-pays and deductibles and possibly medicine that health insurance will not cover. So what ends up happening is that you create debt or spend your savings.The beauty of the living benefits is that the insured has access to benefits to help offset the increased expenses and decreased income. This in turn in most cases allows you to keep the gap between your expenses and your income.DeductiblesYour Family’s ExpensesCo-Pays
12 48 - 50 - 60 What do these numbers mean? 48% of businesses that fail, fail because of a critical illness.150% of foreclosures are due to medical crises. If these patterns hold nationwide, medical causes may put as many as 1.5 million Americans in jeopardy of losing their homes each year.260% or more of all bankruptcies are directly tied to medical conditions such as critical illnesses, and around 80% of the individuals were already covered by health insurance.3Read slide1 Critical Illness Insurance 101 by mark Goldstein,2 Get Sick, Get Out: The Medical Causes of Home Foreclosures" Health Matrix, 2009.3 “More People are Surviving Critical Illnesses…” United States Critical Illness Insurance Resource Center, (13 April 2012).
13 This is why we call it life insurance for life – to cover you when you may need it most – for Terminal, Chronic and Critical Illness and in Death.
14 Trendsetter® LB is term life insurance issued by Transamerica Life Insurance Company, Cedar Rapids, IA (Policy Form No. TL19) Premiums increase annually beginning in year 11 for the 10-year policy, in year 16 for the 15-year policy, in year 21 for the 20-year policy, in year 26 for the 25-year policy, and in year 31 for the 30-year policy. Policy form and number may vary, and this policy may not be available in all jurisdictions. Insurance eligibility and premiums are subject to underwriting. In most states, in the event of suicide during the first two policy years, death benefits are limited only to the return of premiums paid. This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. Transamerica Life Insurance Company (Transamerica) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica's interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of August 2012.