Presentation on theme: "What is the Fastest Growing Market?"— Presentation transcript:
1What is the Fastest Growing Market? Fidelity and Guaranty Life's answer is:HomeCertain
2“Pays Your Mortgage if You Die -- Refunds Your Money if You Live” HomeCertain Product Positioning“Pays Your Mortgage if You Die -- Refunds Your Money if You Live”ConsumersHomeCertain provides the flexible, comprehensive coverage I need to ensure the security of my family and their home.HomeCertain provides the protection I need, when I need it, and refunds my money if I don’t.AgentsHomeCertain is the easiest mortgage term product for me to sell.HomeCertain provides the flexible, comprehensive, competitively priced coverage my clients need to ensure the security of their families and homes.
3Target Market New and existing homeowners Ages 30-50 Married couples with a combined income of $50,000-$100,000Average face amount expected to be $110,000
4HomeCertain: Product Highlights Competitive ratesFully guaranteed rates available“New” expanded issue agesMore riders, more stories to tellLiberal preferred underwritingMore policies issued as applied forRatings up to table D accepted as standardFaster turnaround timeCommissionable policy fee
5HomeCertain’s Policy Design 10, 15, 20, 25, or 30-year termRates guaranteed for 15 years on 30 year level term, for 5 years on all other plans (can be extended by rider)Level and decreasing versionsTremendous selection of ridersPremium guarantee riderMoney back return of premium riderCritical illness protection riderOther insured riderDisability protection riderWaiver of premium - disabilityWaiver of premium - unemploymentUltimate income endorsementAccidental death benefit riderChild’s level term life rider
6HomeCertain Policy Design Issue Ages (age last birthday)5 Year Guarantee Full Term Guarantee10 year plan15 year plan20 year plan25 year plan30 year plan
7HomeCertain Is Easy to Sell Simple premium class structureRatings up to table D accepted as standard5 business day turnaround time on non-medical casesOn face amounts up to $250,000 there is no paramed exam, but we do require:The mortgage must be 13 months old or less;The face amount may not exceed 125% of mortgage amountFace amounts as low as $25,000Commissionable policy fee
8HomeCertain Is Easy to Sell What is a valid mortgage lead?A lead card containing mortgage informationA copy of the mortgage paperwork signed by the applicantA signed copy of the closing statement on the home that shows the mortgage balanceA copy of the mortgage payment couponA copy of Fidelity & Guaranty Life’s referral formNote that the mortgage balance and origination date must be shown
9HomeCertain Is Easy to Sell Fidelity & Guaranty Life’s Mortgage certification formMortgage certification formI hereby certify the following information is correct:Name _____________________________________Address ___________________________________Phone # ___________________________________Loan # ____________________________________Loan Amount _______________________________Mortgage Origination Date ____________________Financial Institution __________________________Referred By ________________________________I understand that I am applying for a life insurance policy that is available to homeowners who have secured a mortgage loan in the last 13 months. I hereby certify that the above information is true and correctDate _____________________________________________ __________________Applicant AgentAll information must be completed.
10HomeCertain Base Policy Designs Decreasing Term ProductSame as level product except:Face amount decreases using a 10% mortgage amortization scheduleDecreasing stops once death benefit falls to half the initial face amountLower premiums than the level termIssue ages on 30 year term, 5 year premium guaranteePremium guarantee rider not availableUltimate income rider not available
11Opportunity to Earn More Commissions Sell HomeCertain at 125% of mortgage and increase your commissionsHelp clients provide life insurance protection for auto loan and consumer debtRemember with money back provision your client receives a return of their premium
12HomeCertain Riders Money Back Rider Concept: If you don’t need the insurance, we give you all of your money back at the end of the initial termPartial money back available for early lapses after 5 policy yearsNot available for 10 year level term period planAvailable at issue onlyReturn of premium paid will be reduced by any amount paid under any rider not to exceed total premium paidTypically increases the premium by 30% on the 30- year term, by 50% on the 25- year term, by 90% on the 20-year term, and by 144% in the 15- year termTerminates at end of initial term; rider benefit is transferable
13Money Back Rider Concept: Coverage for your client if they need it…return of premium if they don’t!Available at issue onlyTypically 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
14HomeCertain Riders Money Back Rider Full money back is paid only if the policy is kept in force to the end of the term periodNo money back is paid for early lapses in the first 5 policy yearsPartial money back is available for early lapses after 5 policy years, in the following percentages of premiums paid:
15Accidental Death Benefit The beneficiary can receive an additional death benefit of 50% of the face amount in the event of certain accident related deaths of the insuredNo Cost Benefit - HomeCertainIssue ages 0-60 (age last birthday)May be added at any time with evidence of insurabilityMaximum benefit up to $250,000
16Children’s Level Term Life Rider One premium is charged for all covered childrenIssue ages: 15 days through 18 years of age; age last birthdayMinimum/ maximum: $5,000/ $10,000; available in increments of $1,000If 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.
17Critical Illness Protection Rider Accelerates payout of the death benefit not to exceed 50% or $250,000 which ever is lessPolicy owner selects the amount at issueUpon the diagnosis by a physician of: life threatening cancer, heart attack, stroke, paralysis, renal failure, major organ transplant, loss of sight, loss of two or more limbsIssue ages: same as base plan; age last birthdayMust complete a supplemental questionnaire
18Disability Protection Rider Monthly benefit is limited to the lesser of:$1,500 monthly or1.5% of the life insurance amount66 2/3% of monthly pay2 year benefit with a 90 day waiting periodIssue ages: 20-55Coverage terminates on policy anniversary following insured age 60Available on primary insured and spouse
19Extended Premium Guarantee Rider Makes the premium rates for the base life coverage fully guaranteed for the 10, 15, 20, 25, or 30 year term periodAdds approximately 20% to the price of the base life coverageExtended premium guarantees do not affect policy riders:Rider prices are already guaranteed, except for Disability Protection and Critical Illness, which do not have guaranteed premiumsAvailable on the level HealthCertain product only
20Other Insured RiderUp to 4 people can be insured under the same policyIdeal for families and businesses - allows policyowner to add or drop insureds as neededDeath of one insured does not affect coverage on othersFace amounts may vary by individualAvailable for all term periods
21Unemployment Protection Rider If unemployment lasts greater than one month, premiums are waived for the next six months as long as the unemployment continuesIssue ages: for primary insured only; age last birthdayNo cost benefitThe rider is attached automatically in all states where approved
22Waiver of Premium Rider Protects a policy owner from losing insurance during periods of prolonged disability of the primary insuredIssue ages: for primary insured only180 day waiting period; disability must begin before age 60May be added at any time with evidence of insurabilityTotal disability is defined as “any occupation” definition; continuing proof of disability required
23Ultimate Income Endorsement Ideal for Income Replacement SalesEasier for your client to understandSelling Income - Not Face AmountFlexibility in Death Benefit PaymentUsually results in sizable discount over traditional capital approach to needs determinationConsider the following example...
24Ultimate Income Endorsement 40 year old Male Preferred Non-TobaccoNeeds death for immediate cash needsAlso needs $3,000 per month income replacement for 25 years until age 65Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years.A traditional capital needs approach would cost $1,156With 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%.
25Ultimate Income Endorsement 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 needsA choice of 5 to 25 years of dependable guaranteed monthly incomeA final lump sum to be used when the income stream is completedThis benefit calculation is software supported
26Ultimate Income Endorsement Can be changed at any time by OwnerGuarantees Income at a time it is needed mostAllows the spouse to “control” proceedsEasier to sell actual income instead of large face amountsFlexibility in death benefit design can reduce premiums in competitive situationsEliminates concern for investment expertise
27What Does Table D Mean? . . . without an APS! Non-insulin dependent diabetic - treated by diet or medicationHypertension - up to two medications are acceptableAsthma - inhaled or oral medicationsArthritis - rheumatoid or joint disease under medicationAnxiety/Depression - mild, short-term, medicationsHeight/Weight - Male 6’0” - up to 317 pounds- Female 5’6” - up to 270 pounds. . . without an APS!
28Advantages of HomeCertain You can have confidence in quoting ratesHigher placement ratioNo paramed on most salesDramatically quicker turnaround time from home officeLong term guaranteesMortgages up to 13 months oldAbility to write up to 125% of mortgage
29SummaryFidelity & Guaranty Life designed HomeCertain to aggressively compete in the mortgage marketHomeCertain continues to exemplify Fidelity & Guaranty Life’s commitment to niche market opportunitiesHomeCertain has delivered in the past. It is the life sales opportunity for 2003 and beyond
30If you are selling Major Medical coverage, what would be on your wish list for a life product for these clients?
31Life Product Wish List For Health Agent Competitive ratesFully guaranteed ratesUp to 30-year term availableCompetitive riders, more stories to tellSimple application with no exam requiredQuicker turnaround timeWhat’s Fidelity & Guaranty Life’s answer??