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Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Products and financial services provided.

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Presentation on theme: "Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Products and financial services provided."— Presentation transcript:

1 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company S TATE L IFE C ARE S OLUTIONS A SSET -B ASED L ONG -T ERM C ARE T RAINING Webinar 1/3/12 1 For company and recruiting use only. Not for public distribution.

2 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company First some house keeping A fixed annuity is a long-term, tax-deferred insurance contract designed for retirement. It allows an individual to create a fixed stream of income through a process called annuitization and also provides a fixed rate of return based on the terms of the contract. Fixed annuities have limitations. If your client decides to take money out early, they may face fees called surrender charges. Plus, if your client is not yet 59 ½, they may also have to pay an additional 10% tax penalty on top of ordinary income taxes. Your client should also know that a fixed annuity contains guarantees that are subject to the issuing insurance company’s ability to pay for them. As your clients’ personal situations change (e.g., marriage, birth of a child, job promotion, retirement, relocation, etc.), so will their life insurance needs. Care should be taken to ensure this product is suitable for their long-term life insurance needs. They should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit their individual needs. Riders are optional and carry an additional cost. The long-term advantage of an optional benefit will vary with the terms of the benefit option and the length of time the product is owned. As a result, in some circumstances, the cost of an option may exceed the actual benefit paid under the option. Please note that the replacement of an existing annuity must not be made unless all factors are weighed and it is documented as suitable for the client. Products underwritten and issued by The State Life Insurance Company, Indianapolis, Indiana. Policy Forms: Asset-Care: L301, SA31 and R501 (or state variation); Annuity Care and Annuity Care II: SA34, SA35, R508. Product and riders may not be available in all states or may vary by state. All guaranteed are subject to the claims paying ability of State Life. For company and recruiting use only. Not for public distribution. 2

3 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company LTC Market Declining sales Inforce rate increases Companies exiting the market 3 For company and recruiting use only. Not for public distribution.

4 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company LTCI New Business Trends Annual Review 2009, LIMRA For company and recruiting use only. Not for public distribution.

5 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Result? More relying on Assets 5 For company and recruiting use only. Not for public distribution.

6 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Leveraged Assets 6 For company and recruiting use only. Not for public distribution.

7 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 7 Husband and wife, each 65 $100,000 single premium Immediately $195,312 death and LTC benefit Need it for LTC? You receive: $3,906 monthly LTC benefit If you die? You receive $195,312 If you surrender You receive at least your $100,000 Plus: 4% minimum guaranteed interest rate Optional lifetime coverage available with guaranteed premiums Patented joint life option Life Insurance with LTC benefits: Available lifetime benefits For company and recruiting use only. Not for public distribution. Numeric examples are hypothetical and were used for educational purposes only.

8 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Sales Idea: 2/28/09 8 For company and recruiting use only. Not for public distribution.

9 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Annuity Statistics 1.57 Trillion = total deferred annuity assets LIMRA, The 2008 Individual Annuity Market 141 billion = 2008 non-qualified deferred annuity sales LIMRA, The 2008 Individual Annuity Market Non-qualified annuity average purchase age – 66 The Gallup Organization, 2009 Survey of Non-Qualified Annuity Contracts How Many will Die with Annuity? 9 For company and recruiting use only. Not for public distribution.

10 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Annuities According to 2009 Gallop survey of Non-Qualified Annuity owners: –83 % intend to use their annuity as a financial resource to avoid being a financial burden on their children –73% intend to use their annuity as an emergency fund in the case of a catastrophic illness or for nursing home care 10 For company and recruiting use only. Not for public distribution.

11 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Changing Market Place 11 Interest rate market vs. value market Low interest rates Low guarantees Value – PPA and Annuity Care ® can give new life to annuities. For company and recruiting use only. Not for public distribution.

12 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Leveraged Asset 12 For company and recruiting use only. Not for public distribution.

13 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company $50,000 basis + $100,000 gain = $150,000 cash value 1035 ExchangeLong-term care expenses $150,000 Existing annuity (funded with after-tax dollars) HIPAA qualified PPA eligible annuity Taxes owed on gain which is withdrawn first Income tax-free as a reduction of cost basis Withdrawal KEY SIMILARITES: PENSION PROTECTION ACT 13 Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only - Not for Public Distribution For company and recruiting use only. Not for public distribution.

14 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company ANNUITY 36 Months C.O.B 36 months Annuity Based LTC Separate Contracts CONTINUATION OF BENEFITS C.O.B. is Optional 14 Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only - Not for Public Distribution For company and recruiting use only. Not for public distribution. Note: benefit periods listed are shared if two annuitants

15 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 15 CONTINUATION OF BENEFITS ANNUITY 36 Months C.O.B 36 months C.O.B. is Optional Life Time Benefits Annuity Based LTC For company and recruiting use only. Not for public distribution.

16 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 16 CONTINUATION OF BENEFITS ANNUITY 36 Months $150,000 / 2.9% per MO ANNUITY 36 Months $150,000 / 2.9% per MO C.O.B 36 months $150,000 = Total $300,000 C.O.B 36 months $150,000 = Total $300,000 C.O.B. is Optional Life Time Benefits = Unlimited Annuity Based LTC Max Age 85 Initial Monthly Benefit $4,350 For company and recruiting use only. Not for public distribution. Numeric examples are hypothetical and were used for educational purposes only.

17 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Annuity Based LTC CONTINUATION OF BENEFITS C.O.B. is Included 17 Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only - Not for Public Distribution ANNUITY C.O.B. ANNUITY C.O.B. For company and recruiting use only. Not for public distribution.

18 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Annuity Based LTC PAYMENT OF C.O.B. PREMIUM 18 Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only - Not for Public Distribution ANNUITY C.O.B. ANNUITY C.O.B. Monthly charge for COB C.O.B. is Included For company and recruiting use only. Not for public distribution.

19 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company Annuity Based LTC PAYMENT OF C.O.B. PREMIUM 19 Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only - Not for Public Distribution ANNUITY C.O.B. ANNUITY C.O.B. Monthly charge for COB 36 Mo C.O.B. is Included For company and recruiting use only. Not for public distribution.

20 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 20 Annuity Based LTC ANNUITY C.O.B. ANNUITY C.O.B. Monthly charge for COB 36 Mo 72 Mo CONTINUATION OF BENEFITS C.O.B. is Included For company and recruiting use only. Not for public distribution.

21 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 21 Annuity Based LTC ANNUITY 24 Mo Single 30 Mo Joint C.O.B. Age 80 ANNUITY 24 Mo Single 30 Mo Joint C.O.B. Age 80 Monthly charge for COB 36 Mo Age Mo Age Mo C.O.B. OPTIONS C.O.B. is Included For company and recruiting use only. Not for public distribution.

22 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 22 Annuity Based LTC Female Age 70 ANNUITY $100,000 C.O.B. $150,000 ANNUITY $100,000 C.O.B. $150,000 Monthly charge for COB 36 Mo 72 Mo 108 Mo C.O.B. OPTIONS $250,000 LTC C.O.B. is Included For company and recruiting use only. Not for public distribution. Numeric examples are hypothetical and were used for educational purposes only. Note: The amount of COB benefit is based on sex, age at issue and the LTC claims method chosen

23 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 23 Annuity Based LTC Female Age 70 ANNUITY $100,000 C.O.B. $150,000 ANNUITY $100,000 C.O.B. $150,000 Monthly charge for COB 36 Mo $300, Mo 108 Mo $250,000 LTC $400,000 LTC C.O.B. OPTIONS C.O.B. is Included For company nd recruiting use only. Not for public distribution. Numeric examples are hypothetical and were used for educational purposes only. For company and recruiting use only. Not for public distribution. Note: The amount of COB benefit is based on sex, age at issue and the LTC claims method chosen

24 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company 24 Annuity Based LTC Female Age 70 ANNUITY $100,000 C.O.B. $150,000 Monthly charge for COB 36 Mo $300, Mo $450, Mo $250,000 LTC $400,000 LTC $550,000 LTC C.O.B. OPTIONS C.O.B. is Included Numeric examples are hypothetical and were used for educational purposes only. For company and recruiting use only. Not for public distribution. Note: The amount of COB benefit is based on sex, age at issue and the LTC claims method chosen

25 Products and financial services provided by T HE S TATE L IFE I NSURANCE C OMPANY | a O NE A MERICA ® company The State Life Sales Desk For company and recruiting use only. Not for public distribution.


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