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Fidelity & Guaranty Life Insurance Company 1 Savers Select Term SM.

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Presentation on theme: "Fidelity & Guaranty Life Insurance Company 1 Savers Select Term SM."— Presentation transcript:

1 Fidelity & Guaranty Life Insurance Company 1 Savers Select Term SM

2 Fidelity & Guaranty Life Insurance Company 2 Falling Prices, Falling Sales Bests Review - November 01, 2000 by David F. Woods As prices have fallen…sales, not demand, have fallen As prices have fallen…sales, not demand, have fallen Annual policy sales have declined eight straight years Annual policy sales have declined eight straight years People who plan to buy out number 3:1 actual sales People who plan to buy out number 3:1 actual sales 21% of people earning more than $75K say they need more life insurance 21% of people earning more than $75K say they need more life insurance 54% of people between $35K & $75K need more life insurance 54% of people between $35K & $75K need more life insurance 31 million people say they plan to buy in next 12 months 31 million people say they plan to buy in next 12 months Have Life Insurers gone too far?

3 Fidelity & Guaranty Life Insurance Company 3 Falling Prices, Falling Sales Bests Review - November 01, 2000 by David F. Woods 11 million policies were sold vs. identified 31 million who want to buy 11 million policies were sold vs. identified 31 million who want to buyConclusion: In the life insurance industry where prices are falling, demand exceeds sales and supply is unlimited, the failure has to be in distribution. In the life insurance industry where prices are falling, demand exceeds sales and supply is unlimited, the failure has to be in distribution.Why? Have Life Insurers gone too far?

4 Fidelity & Guaranty Life Insurance Company 4 Falling Prices, Falling Sales Bests Review - November 01, 2000 by David F. Woods FACTORS: Tremendous reduction in premium rates combined with fewer policies sold. Agent is making 50%of what they made 10 years ago for the same case. Tremendous reduction in premium rates combined with fewer policies sold. Agent is making 50%of what they made 10 years ago for the same case. 40% of agents income is from insurance sales compared with 60% 10 years ago. 40% of agents income is from insurance sales compared with 60% 10 years ago. Agents steering away from more difficult life insurance sale with such a financial disincentive. Agents steering away from more difficult life insurance sale with such a financial disincentive. Have Life Insurers gone too far?

5 Fidelity & Guaranty Life Insurance Company 5 Falling Prices, Falling Sales Bests Review - November 01, 2000 by David F. Woods RESULT: We have 60 million who say they need more life insurance - 31 million who want to buy within next 12 months - will life insurance agents be willing to fulfill this economic demand if carriers continue to decrease rates and commissions? We have 60 million who say they need more life insurance - 31 million who want to buy within next 12 months - will life insurance agents be willing to fulfill this economic demand if carriers continue to decrease rates and commissions? Have Life Insurers gone too far?

6 Fidelity & Guaranty Life Insurance Company 6 The answer is: SAVERS SELECT TERM & RETURN OF PREMIUM Have Life Insurers gone too far?

7 Fidelity & Guaranty Life Insurance Company 7 At last - a term life insurance product worth selling Consumers Savers Select term provides easy to obtain coverage with unique benefits for families and small business owners. Savers Select term provides benefits when your client needs them and return of premium if they dont. Agents Savers Select allows the agent to earn better than average income with the addition of unique customer focused rider benefits. Savers Select liberal preferred underwriting allows the agent to place more cases without the need to resell the policy on delivery. Savers Select Product Positioning

8 Fidelity & Guaranty Life Insurance Company 8 Competitive rates Competitive rates Return of Premium and Disability Income Riders Return of Premium and Disability Income Riders High 1st year commissions High 1st year commissions Renewal commissions- up to 10 years Renewal commissions- up to 10 years Short form application Short form application Age last birthday Age last birthday Liberal preferred underwriting Liberal preferred underwriting Excellent smoker rates Excellent smoker rates No blood through $500k Age 40 and $250k age 50 No blood through $500k Age 40 and $250k age 50 Commissionable policy fee Commissionable policy fee Savers Select Term

9 Fidelity & Guaranty Life Insurance Company 9 15, 20, or 30-year term 15, 20, or 30-year term $150,000 minimum face amount $150,000 minimum face amount Rates guaranteed for 10 years or full term period by use of Rider Rates guaranteed for 10 years or full term period by use of Rider Liberal preferred underwriting allows for more cases to placed as submitted Liberal preferred underwriting allows for more cases to placed as submitted Convertible on or before tenth policy anniversary to UL Convertible on or before tenth policy anniversary to UL Issue ages (age last birthday) Issue ages (age last birthday) 10 yearterm period guaranteeguarantee 15-year plan year plan year plan Savers Select Policy Design

10 Fidelity & Guaranty Life Insurance Company 10 $60 policy fee, fully commissionable, no additional policy fee for up to three insureds $60 policy fee, fully commissionable, no additional policy fee for up to three insureds Five Premium Bands Five Premium Bands $150,000-$249,999 $250,000-$499,999 $500,000-$999,999 $1,000,000-$2,999,999 $3,000,000 and up Tremendous selection of riders Money back return of premium rider Money back return of premium rider Other insured rider (up to 3 per policy with only one policy fee) Other insured rider (up to 3 per policy with only one policy fee) Disability protection rider Disability protection rider Waiver of Premium Waiver of Premium Accelerated Death Benefit Accelerated Death Benefit Savers Select Policy Design cont.

11 Fidelity & Guaranty Life Insurance Company 11 Short simple application for quicker turnaround time Short simple application for quicker turnaround time No Blood through age 40 & 500K, age 50 & 250K No Blood through age 40 & 500K, age 50 & 250K Easier for your client Easier for your client Two underwriting bands -- Preferred and Standard allow agent to sell rate with confidence Two underwriting bands -- Preferred and Standard allow agent to sell rate with confidence No need to resell case at delivery with higher rate No need to resell case at delivery with higher rate Your Client: Male 45, , BP 150/90 Cholesterol 260, HDL 7.0, one parent die before age 60 due to heart or cancer… Your Client: Male 45, , BP 150/90 Cholesterol 260, HDL 7.0, one parent die before age 60 due to heart or cancer… gets our best rate! Savers Select Simple Underwriting

12 Fidelity & Guaranty Life Insurance Company 12 Liberal Height & Weight Liberal Height & Weight Liberal blood pressure readings Liberal blood pressure readings 150/90 age 50 and younger 150/90 age 50 and younger 160/95 ages 51 + (blood pressure treatment allowed if controlled over last 2 years) 160/95 ages 51 + (blood pressure treatment allowed if controlled over last 2 years) Cholesterol Cholesterol 260 age 50 and younger 260 age 50 and younger 280 ages 51 to ages 51 to over age 65, Cholesterol/HDL ratio cannot exceed 7.0 (Cholesterol treatment allowed if controlled over last 2 years) 300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0 (Cholesterol treatment allowed if controlled over last 2 years) Savers Select Liberal Preferred Underwriting

13 Fidelity & Guaranty Life Insurance Company 13 Less than 30 days turnaround on fully underwritten applications Less than 30 days turnaround on fully underwritten applications Easy to manage pending reports - SalesLink Easy to manage pending reports - SalesLink Weekly EFT available Weekly EFT available And Lets talk commissions… High First Year Rate High First Year Rate Commissionable policy fee Commissionable policy feeAND Renewals up to 10 Years Savers Select - Get Paid Faster

14 Fidelity & Guaranty Life Insurance Company 14 Maximum monthly benefit is the lesser of: Maximum monthly benefit is the lesser of: $3,000 monthly or $3,000 monthly or 66 2/3% of monthly pay 66 2/3% of monthly pay Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of any occupation for which the insured may qualify by reason of education, training or experience Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of any occupation for which the insured may qualify by reason of education, training or experience Must be added at issue only Must be added at issue only 90 day wait 2 year benefit 90 day wait 2 year benefit Disability Protection Rider Savers Select Riders

15 Fidelity & Guaranty Life Insurance Company 15 Using this rider - up to 4 people can be insured under the same policy. Using this rider - up to 4 people can be insured under the same policy. Ideal for business - allows policyowner to add or drop insureds as needed. Ideal for business - allows policyowner to add or drop insureds as needed. The death of one insured does not affect coverage for the others. The death of one insured does not affect coverage for the others. Face amounts may vary by individual. Face amounts may vary by individual. Available for all term periods. Available for all term periods. Other Insured Rider

16 Fidelity & Guaranty Life Insurance Company 16 One premium is charged for all covered children One premium is charged for all covered children Issue ages: 15 days through 18 years of age; age last birthday Issue ages: 15 days through 18 years of age; age last birthday Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000 Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000 If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25. If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25. Convertible to age 25. Convertible to age 25. Childrens Level Term Life Rider

17 Fidelity & Guaranty Life Insurance Company 17 If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a maximum of $250,000 If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a maximum of $250,000 Must be elected at policy issue. Must be elected at policy issue. No Premium charge. No Premium charge. One time administrative fee of $350 at time of claim. One time administrative fee of $350 at time of claim. Accelerated Benefit Rider

18 Fidelity & Guaranty Life Insurance Company 18 Ideal for Income Replacement Sales Ideal for Income Replacement Sales Easier to understand for Client Easier to understand for Client Selling Income - Not Face Amount Selling Income - Not Face Amount Flexibility in Death Benefit Payment Flexibility in Death Benefit Payment Usually results in sizable discount over traditional capital approach to needs determination Usually results in sizable discount over traditional capital approach to needs determination Consider the following example... Ultimate Income Endorsement

19 Fidelity & Guaranty Life Insurance Company year old Male Preferred NT 40 year old Male Preferred NT Wants death for immediate cash needs Wants death for immediate cash needs Also needs $3,000 per month income replacement for 25 years until age 65 Also needs $3,000 per month income replacement for 25 years until age 65 Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years. Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years. With a traditional capital needs approach the cost would be $1,156 With a traditional capital needs approach the cost would be $1,156 Utilizing the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of $877 which represents a savings of 24%. Utilizing the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of $877 which represents a savings of 24%. Ultimate Income Endorsement

20 Fidelity & Guaranty Life Insurance Company 20 The Ultimate Income Rider allows the policyholder to designate how the benefit will be paid with any or all of the following options: The Ultimate Income Rider allows the policyholder to designate how the benefit will be paid with any or all of the following options: An initial lump sum payable at death to take care of immediate cash needs. An initial lump sum payable at death to take care of immediate cash needs. A choice of 5 to 25 years of dependable guaranteed monthly income. A choice of 5 to 25 years of dependable guaranteed monthly income. A final lump sum to be used when the income stream is completed. A final lump sum to be used when the income stream is completed. This benefit calculation is software supported. Ultimate Income Endorsement

21 Fidelity & Guaranty Life Insurance Company 21 Other Benefits Can be changed at any time by Owner Can be changed at any time by Owner Guarantees Income at a time it is needed most Guarantees Income at a time it is needed most Allows the spouse to control proceeds from the grave Allows the spouse to control proceeds from the grave Easier to sell actual income instead of large face amounts Easier to sell actual income instead of large face amounts Flexibility in death benefit design can reduce premiums in competitive situations. Flexibility in death benefit design can reduce premiums in competitive situations. Eliminates concern for investment expertise. Eliminates concern for investment expertise. Ultimate Income Endorsement

22 Fidelity & Guaranty Life Insurance Company 22 Concept: Concept: Coverage for your client if they need it…return of premium if they dont! Available at issue only Available at issue only Typically increases the premium by 30% on the 30- year term, by 90% on the 20-year term, and by 144% in the 15- year term Typically increases the premium by 30% on the 30- year term, by 90% on the 20-year term, and by 144% in the 15- year term IS IT A GOOD DEAL FOR YOUR CLIENT? IS IT A GOOD DEAL FOR YOUR CLIENT? Money Back Rider Savers Select Riders

23 Fidelity & Guaranty Life Insurance Company 23 Lets assume the following: Lets assume the following: Male / Age 45 / Pref. Non-tobacco / $500,000 Male / Age 45 / Pref. Non-tobacco / $500,000 Savers Select Term $500,000 w/o Return of Premium = $ Savers Select Term $500,000 w/ Return of Premium = $ Increased cost to provide guaranteed Return of Premium = $ Additional $ generates a guaranteed refund of premium of $48,450 at the end of 30 years. The net result... Money Back Rider Savers Select Riders

24 Fidelity & Guaranty Life Insurance Company % Net after-tax guaranteed equivalent over 30 years Money Back Rider Savers Select Riders

25 Fidelity & Guaranty Life Insurance Company 25 Full money back is paid if the policy is kept in force to the end of the term period Full money back is paid if the policy is kept in force to the end of the term period No money back is paid for lapses in the first 5 policy years No money back is paid for lapses in the first 5 policy years Partial money back is available for lapses after 5 policy years, in the following percentages of premiums paid: Partial money back is available for lapses after 5 policy years, in the following percentages of premiums paid: Money Back Rider Savers Select Riders

26 Fidelity & Guaranty Life Insurance Company 26 03/07/01 Information is deemed reliable. Rates subject to change by the minute. COMPULIFE TERM4SALE SAVERS SELECT TERM COMPARISON

27 Fidelity & Guaranty Life Insurance Company 27 Savers Select Term Comparison

28 Fidelity & Guaranty Life Insurance Company 28 Savers Select Term Comparison

29 Fidelity & Guaranty Life Insurance Company 29 Savers Select Term Comparison

30 Fidelity & Guaranty Life Insurance Company 30 Savers Select Term Comparison

31 Fidelity & Guaranty Life Insurance Company 31 Savers Select Term Comparison

32 Fidelity & Guaranty Life Insurance Company 32 Savers Select Term Comparison

33 Fidelity & Guaranty Life Insurance Company 33 How good is age last birthday? Savers Select Benefits

34 Fidelity & Guaranty Life Insurance Company 34 50% of the time you have a better rate than the competition-- just because of age 50% of the time you have a better rate than the competition-- just because of age Less confusing to your clients Less confusing to your clients Difference in Rates for competitors: Difference in Rates for competitors: Male N/S 45 and 46 Pref. 30/10 Federal Kemper: 9% increase First Penn-Pacific: 12.5% increase Old Line Life: 12.5% increase Savers Select Benefits Age Last Birthday

35 Fidelity & Guaranty Life Insurance Company 35 Savers Select Term Comparison

36 Fidelity & Guaranty Life Insurance Company 36 What is better than a fully guaranteed 30 year term life insurance product? Savers Select Benefits

37 Fidelity & Guaranty Life Insurance Company 37 A 30 year term life insurance product from F&G Life with a return of premium rider! Savers Select Benefits

38 Fidelity & Guaranty Life Insurance Company 38 Compare 30 year term product with fully guaranteed rates versus 30 year term with 10 years guaranteed and the Return of Premium Rider Compare 30 year term product with fully guaranteed rates versus 30 year term with 10 years guaranteed and the Return of Premium Rider Male 45 $500,000 non-smoker Preferred Class: F&G Life preferred with Return of Premium $1,615 First Penn-Pacific LifeGTO30$2,125 The Old Line Life$1,970 North American$1,750 Protective Life$1,615 West Coast$1,745 Coverage with more than canceled checks Coverage with more than canceled checks End of 30 year period ROP$48,450 End of 30 year period ROP$48,450 Savers Select Benefits Return of Premium Rider

39 Fidelity & Guaranty Life Insurance Company 39 X,XXX,XXX term life insurance policies sold over last 5 years. X,XXX,XXX term life insurance policies sold over last 5 years. 7 out of 8 illustrated were issued other than best rate 7 out of 8 illustrated were issued other than best rate No renewal commission No renewal commission No service fees No service fees Most without Disability Income rider Most without Disability Income rider Most without Return of Premium Rider Most without Return of Premium Rider Introducing F&G Lifes…. A GREAT SALES OPPORTUNITY

40 Fidelity & Guaranty Life Insurance Company 40 Full Commissions! Full Commissions! Non-Medical Non-Medical No Medical Examination No Medical Examination No Blood No Blood No HOS No HOS Short-Form Application Short-Form Application Renewals up to 10 years. Renewals up to 10 years. Any fully-underwritten term issued in last 5 years* Any fully-underwritten term issued in last 5 years* * consult ineligible carrier list Saver Select Term Exchange Program

41 Fidelity & Guaranty Life Insurance Company 41 The Hottest Term Product in America is Sizzling! Term to Term exchange Term to Term exchange Up through age 60 Up through age 60 Face amounts from $150,000 to $500,000 Face amounts from $150,000 to $500,000 Riders are transferred if available on Savers Select Riders are transferred if available on Savers Select Up to 3 additional insureds can be added to 1 policy Up to 3 additional insureds can be added to 1 policy Can add Return of Premium Rider Can add Return of Premium Rider Initial Premium Draft - NEW Initial Premium Draft - NEW Preferred class available Preferred class available Savers Select Term Exchange Program

42 Fidelity & Guaranty Life Insurance Company 42 Simple Process Complete Short-form application Complete Short-form application Attached original policy and photocopy of app & medical exam Attached original policy and photocopy of app & medical exam Complete transfer of ownership form Complete transfer of ownership form Complete exchange transmittal Complete exchange transmittal Initial Premium Draft or PAC if requested Initial Premium Draft or PAC if requested State replacement form if applicable State replacement form if applicable Saver Select Term Exchange Program

43 Fidelity & Guaranty Life Insurance Company 43 Ineligible Carrier List Empire General Empire General F&G Life (no internal exchanges allowed) F&G Life (no internal exchanges allowed) Guaranteed Trust Guaranteed Trust Lincoln Benefit Lincoln Benefit Manhattan National Manhattan National The Midland The Midland Merit Life Merit Life State Life State Life United of Omaha United of Omaha U.S. Financial U.S. Financial Savers Select Term Exchange Program

44 Fidelity & Guaranty Life Insurance Company 44 Savers Select Term Exchange Program

45 Fidelity & Guaranty Life Insurance Company 45 F&G Life has designed Savers Select to aggressively compete in the neglected brokerage term market F&G Life has designed Savers Select to aggressively compete in the neglected brokerage term market Savers Select exemplifies F&G Lifes commitment to niche market opportunities Savers Select exemplifies F&G Lifes commitment to niche market opportunities Savers Select delivers distinct benefits to your clients Savers Select delivers distinct benefits to your clients Agents now have a product that they can afford to sell with less hassle for you & your customer Agents now have a product that they can afford to sell with less hassle for you & your customer Summary and Conclusions

46 Fidelity & Guaranty Life Insurance Company 46 Benefits for your clients if they need them…return of premium if they dont Savers Select…..Simply

47 Fidelity & Guaranty Life Insurance Company 47 Savers Select Marketing Materials


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