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

Fidelity & Guaranty Life Insurance CompanyFidelity & Guaranty Life Insurance Company 11

Saver’s Select TermSM


The answer is:The answer is:

SAVER’S SELECT TERMSAVER’S SELECT TERM

&&

RETURN OF PREMIUMRETURN OF PREMIUM

Have Life Insurers gone too far?Have Life Insurers gone too far?


“At last - a term life insurance product worth selling ”

Consumers

• Saver’s Select term provides easy to obtain coverage with unique benefits for families and small business owners.

• Saver’s Select term provides benefits when your client needs them and return of premium if they don’t.

Agents

• Saver’s Select allows the agent to earn better than average income with the addition of unique customer focused rider benefits.

• Saver’s Select liberal preferred underwriting allows the agent to place more cases without the need to resell the policy on delivery.

Saver’s SelectSaver’s Select Product Positioning Product Positioning


Competitive ratesCompetitive rates

Return of Premium and Disability Income Riders Return of Premium and Disability Income Riders

High 1st year commissionsHigh 1st year commissions

Renewal commissions- up to 10 yearsRenewal commissions- up to 10 years

Short form applicationShort form application

Age last birthdayAge last birthday

Liberal preferred underwritingLiberal preferred underwriting

Excellent smoker ratesExcellent smoker rates

No blood through $500k Age 40 and $250k age 50No blood through $500k Age 40 and $250k age 50

Commissionable policy feeCommissionable policy fee

Saver’s Select TermSaver’s Select Term


15, 20, or 30-year term15, 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 Rates guaranteed for 10 years or full term period by use of

RiderRider

Liberal preferred underwriting allows for more cases to Liberal preferred underwriting allows for more cases to

placed as submittedplaced as submitted

Convertible on or before tenth policy anniversary to ULConvertible on or before tenth policy anniversary to UL

Issue ages (age last birthday)Issue ages (age last birthday)10 year10 year term periodterm periodguaranteeguarantee guaranteeguarantee

15-year plan15-year plan 18-65 18-65 18-60 18-6020-year plan20-year plan 18-60 18-60 18-55 18-5530-year plan30-year plan 18-60 18-60 18-45 18-45

Saver’s SelectSaver’s Select Policy Design Policy Design


$60 policy fee, fully commissionable, no additional policy fee $60 policy fee, fully commissionable, no additional policy fee for up to three insuredsfor up to three insureds

Five Premium BandsFive Premium Bands

$150,000$150,000 -- $249,999$249,999

$250,000$250,000 -- $499,999$499,999

$500,000$500,000 -- $999,999$999,999

$1,000,000$1,000,000 -- $2,999,999$2,999,999

$3,000,000 and up$3,000,000 and up

Tremendous selection of ridersTremendous selection of riders Money back return of premium riderMoney 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 riderDisability protection rider Waiver of PremiumWaiver of Premium Accelerated Death BenefitAccelerated Death Benefit

Saver’s SelectSaver’s Select Policy Design cont. Policy Design cont.


Short simple application for quicker turnaround timeShort simple application for quicker turnaround time

No Blood through age 40 & 500K, age 50 & 250KNo Blood through age 40 & 500K, age 50 & 250K

Easier for your clientEasier for your client

Two underwriting bands -- Preferred and Standard allow agent to Two underwriting bands -- Preferred and Standard allow agent to

sell rate with confidencesell 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, 6’0 248, BP 150/90 Cholesterol 260, HDL 7.0 , Your Client: Male 45, 6’0 248, BP 150/90 Cholesterol 260, HDL 7.0 ,

one parent die before age 60 due to heart or cancer…one parent die before age 60 due to heart or cancer…

gets our gets our best rate!best rate!

Saver’s SelectSaver’s Select Simple Underwriting Simple Underwriting


Liberal Height & WeightLiberal Height & Weight

Liberal blood pressure readings Liberal blood pressure readings

150/90 age 50 and younger150/90 age 50 and younger

160/95 ages 51 + (blood pressure treatment allowed if 160/95 ages 51 + (blood pressure treatment allowed if

controlled over last 2 years)controlled over last 2 years)

Cholesterol Cholesterol

260 age 50 and younger260 age 50 and younger

280 ages 51 to 65280 ages 51 to 65

300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0 300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0

(Cholesterol treatment allowed if controlled over last 2 years)(Cholesterol treatment allowed if controlled over last 2 years)

Saver’s SelectSaver’s Select Liberal Preferred Underwriting Liberal Preferred Underwriting


Less than 30 days turnaround on fully underwritten applicationsLess than 30 days turnaround on fully underwritten applications

Easy to manage pending reports - SalesLinkEasy to manage pending reports - SalesLink

Weekly EFT availableWeekly EFT available

And Let’s talk commissions…And Let’s talk commissions…

High First Year Rate High First Year Rate

Commissionable policy feeCommissionable policy fee

ANDAND

Renewals up to 10 YearsRenewals up to 10 Years

Saver’s SelectSaver’s Select - Get Paid Faster - Get Paid Faster


Maximum monthly benefit is the lesser of:Maximum monthly benefit is the lesser of: $3,000 monthly $3,000 monthly oror 66 2/3% of monthly pay66 2/3% of monthly pay

Total disability is defined as inability to substantially perform Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of “any in the usual and customary way the essential duties of “any occupation” for which the insured may qualify by reason of occupation” for which the insured may qualify by reason of education, training or experienceeducation, training or experience

Must be added at issue onlyMust be added at issue only 90 day wait 2 year benefit90 day wait 2 year benefit

Disability Protection Rider

Saver’s SelectSaver’s Select Riders Riders


Using this rider - up to 4 people can be insured under Using this rider - up to 4 people can be insured under the same policy.the same policy.

Ideal for business - allows policyowner to add or drop Ideal for business - allows policyowner to add or drop insureds as needed. insureds as needed.

The death of one insured does not affect coverage for The death of one insured does not affect coverage for the others.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 RiderOther Insured Rider


One premium is charged for all covered childrenOne premium is charged for all covered children

Issue ages: 15 days through 18 years of age; age last Issue ages: 15 days through 18 years of age; age last birthdaybirthday

Minimum/ maximum: $5,000/ $10,000; available in Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000increments of $1,000

If primary insured dies while this rider is in effect; each If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25.child will receive a paid- up term life policy to age 25.

Convertible to age 25.Convertible to age 25.

Children’s Level Term Life RiderChildren’s Level Term Life Rider


If client is diagnosed with a terminal illness, they can If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a receive up to 50% of the policy death benefit, up to a maximum of $250,000maximum 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 RiderAccelerated Benefit Rider


Ideal for Income Replacement SalesIdeal for Income Replacement Sales

Easier to understand for ClientEasier to understand for Client

Selling Income - Not Face AmountSelling Income - Not Face Amount

Flexibility in Death Benefit PaymentFlexibility in Death Benefit Payment

Usually results in sizable discount over traditional capital approach to needs Usually results in sizable discount over traditional capital approach to needs determinationdetermination

Consider the following example...Consider the following example...

Ultimate Income EndorsementUltimate Income Endorsement


40 year old Male Preferred NT40 year old Male Preferred NT

Wants $100,000 @ death for immediate cash needsWants $100,000 @ death for immediate cash needs

Also needs $3,000 per month income replacement for 25 years until age 65Also 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 Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years.end of 25 years.

With a traditional capital needs approach the cost would be With a traditional capital needs approach the cost would be $1,156$1,156

Utilizing the Ultimate Income Rider the client can receive the payment exactly as they Utilizing the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of want - GUARANTEED. For a premium of $877$877 which represents a savings of which represents a savings of 24%.24%.



The Ultimate Income Rider allows the policyholder to designate how the The Ultimate Income Rider allows the policyholder to designate how the benefit will be paid with any or all of the following options: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 An initial lump sum payable at death to take care of immediate cash needs.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.This benefit calculation is software supported.



Other BenefitsOther Benefits

Can be changed at any time by OwnerCan be changed at any time by Owner

Guarantees Income at a time it is needed mostGuarantees Income at a time it is needed most

Allows the spouse to “control” proceeds from the graveAllows the spouse to “control” proceeds from the grave

Easier to sell actual income instead of large face amountsEasier 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.



Concept: Concept:

Coverage for your client if they need it…Coverage for your client if they need it…return of premium if they don’t!return of premium if they don’t!

Available at issue onlyAvailable at issue only Typically increases the premium by 30% on the 30- year Typically increases the premium by 30% on the 30- year

term, by 90% on the 20-year term, and by 144% in the 15- term, by 90% on the 20-year term, and by 144% in the 15- year termyear term

IS IT A GOOD DEAL FOR YOUR CLIENT?IS IT A GOOD DEAL FOR YOUR CLIENT?

Money Back Rider



Let’s assume the following:Let’s assume the following: Male / Age 45 / Pref. Non-tobacco / $500,000Male / Age 45 / Pref. Non-tobacco / $500,000

Saver’s Select Term $500,000 w/o Return of Premium =Saver’s Select Term $500,000 w/o Return of Premium =

$1275.00$1275.00

Saver’s Select Term $500,000 w/ Return of Premium =Saver’s Select Term $500,000 w/ Return of Premium =

$1615.00$1615.00

Increased cost to provide guaranteed Return of Premium =Increased cost to provide guaranteed Return of Premium =

$340.00$340.00

Additional $340.00 generates a guaranteed refund of Additional $340.00 generates a guaranteed refund of

premium of $48,450 at the end of 30 years.premium of $48,450 at the end of 30 years.

The net result...The net result...

Money Back Rider



8.67%8.67%Net after-tax guaranteed equivalent over 30 yearsNet after-tax guaranteed equivalent over 30 years

Money Back Rider



Full money back is paid if the Full money back is paid if the policy is kept in force to the end policy is kept in force to the end of the term periodof the term period

No money back is paid for No money back is paid for lapses in the first 5 policy yearslapses in the first 5 policy years

Partial money back is available Partial money back is available for lapses after 5 policy years, in for lapses after 5 policy years, in the following percentages of the following percentages of premiums paid:premiums paid:

Money Back Rider



03/07/0103/07/01

Information is deemed reliable.Information is deemed reliable.

Rates subject to change Rates subject to change

by the minute.by the minute.

COMPULIFE TERM4SALE

SAVER’S SELECT TERM COMPARISONSAVER’S SELECT TERM COMPARISON


Saver’s SelectSaver’s Select Term Comparison Term Comparison

30 year TermFace Amount $250,000Male: 35Non-Smoker10 year Rate Guarantee

Company Class 1 Class 2

First Penn $242.50 305.00$ Old Line Life 335.00$ 382.50$ TransAmericia 340.00$ 347.50$ North American 247.50$ 347.50$ F&G Life 317.50$ 317.50$ F&G Life w/ROP 390.00$ 390.00$

Age 35 Comparison



30 year TermFace Amount: $250,000Male: 35Smoker10 year Rate Guarantee


West Coast 717.50$ 847.50$ First Penn 640.00$ 945.00$ North American 755.00$ 865.00$ Valley Forge (CND) 770.00$ 1,047.50$ Old Line 912.50$ 1,110.00$ Great American 940.00$ 1,115.00$ F&G Life 680.00$ 680.00$ F&G Life w/ROP 860.00$ 860.00$

Age 35 Comparison



Age 45 Comparison

30 year TermFace Amount: $500,000Male: 45Non-Smoker10 year Rate Guarantee


North American 960.00$ 1,215.00$ Old Line Life 970.00$ 1,205.00$ Lincoln Benefit 1,090.00$ 1,265.00$ Federal Kemper 980.00$ 1,205.00$ TransAmerica 1,135.00$ 1,235.00$ First Penn 955.00$ 1,285.00$ F&G Life 1,275.00$ 1,275.00$ F&G Life w/ROP 1,615.00$ 1,615.00$



30 year TermFace Amount: $500,000Male: 45Smoker10 year Rate Guarantee


Great American 4,460.00$ 5,340.00$ Midland National 3,295.00$ 3,685.00$ North American 3,640.00$ 4,290.00$ TransAmerica 3,300.00$ 5,530.00$ Old Republic 3,640.00$ 3,975.00$ West Coast 3,720.00$ 3,835.00$ F&G Life 2,875.00$ 2,875.00$ F&G Life w/ROP 3,690.00$ 3,690.00$

Age 45 Comparison



30 year TermFace Amount: $1,000,000Male: 55Non-Smoker10 year Rate Guarantee


Empire General 6,325.00$ 9,005.00$ North American 5,615.00$ 6,815.00$ West Coast 5,980.00$ 8,600.00$ Conseco 7,230.00$ 9,990.00$ F&G Life 7,180.00$ 7,180.00$ F&G Life w/ROP 9,180.00$ 9,180.00$

Age 55 Comparison



30 year TermFace Amount: $1,000,000Male: 55Smoker10 year Rate Guarantee


Conseco 14,210.00$ 19,310.00$ Empire General 13,935.00$ 15,395.00$ West Coast 18,075.00$ 20,090.00$ North American 17,315.00$ 19,165.00$ F&G Life 13,280.00$ 13,280.00$ F&G Life w/ROP 17,110.00$ 17,110.00$

Age 55 Comparison


How good is age last How good is age last

birthday?birthday?

Saver’s SelectSaver’s Select Benefits Benefits


50% of the time you have a better rate than the competition-- 50% of the time you have a better rate than the competition--

just because of agejust 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. 30/10Male N/S 45 and 46 Pref. 30/10

Federal Kemper: 9% increaseFederal Kemper: 9% increase

First Penn-Pacific: 12.5% increaseFirst Penn-Pacific: 12.5% increase

Old Line Life: 12.5% increaseOld Line Life: 12.5% increase

Saver’s SelectSaver’s Select Benefits Age Last Birthday Benefits Age Last Birthday



Age Last Birthday30 year TermFace Amount: $500,000Male: 45Non-Smoker Class 210 year Rate Guarantee

Company Age Near 46 All Age 45

North American 1,350.00$ 1,215.00$ Old Line Life 1,335.00$ 1,205.00$ First Colony 1,460.00$ 1,355.00$ Federal Kemper 1,315.00$ 1,205.00$ Old Republic 1,360.00$ 1,250.00$ First Penn 1,445.00$ 1,285.00$ F&G Life 1,275.00$ 1,275.00$ F&G Life w/ROP 1,615.00$ 1,615.00$


What is better than a fully What is better than a fully

guaranteed 30 year term life guaranteed 30 year term life

insurance product?insurance product?



A 30 year term life insurance A 30 year term life insurance

product from F&G Life with a product from F&G Life with a

return of premium rider!return of premium rider!



Compare 30 year term product with fully guaranteed rates versus Compare 30 year term product with fully guaranteed rates versus

30 year term with 10 years guaranteed and the Return of Premium 30 year term with 10 years guaranteed and the Return of Premium

RiderRider

Male 45 $500,000 non-smoker Preferred Class:Male 45 $500,000 non-smoker Preferred Class:

F&G Life preferred with Return of Premium F&G Life preferred with Return of Premium $1,615$1,615

First Penn-Pacific LifeFirst Penn-Pacific Life GTO30GTO30 $2,125$2,125

The Old Line LifeThe Old Line Life $1,970$1,970

North AmericanNorth American $1,750$1,750

Protective LifeProtective Life $1,615$1,615

West CoastWest Coast $1,745$1,745

Coverage with more than canceled checks Coverage with more than canceled checks

End of 30 year period ROPEnd of 30 year period ROP $48,450$48,450

Saver’s SelectSaver’s Select Benefits Return of Premium Rider Benefits Return of Premium Rider


X,XXX,XXX term life insurance policies sold over last X,XXX,XXX term life insurance policies sold over last

5 years.5 years.

7 out of 8 illustrated were issued other than best rate7 out of 8 illustrated were issued other than best rate

No renewal commissionNo renewal commission

No service feesNo service fees

Most without Disability Income riderMost without Disability Income rider

Most without Return of Premium RiderMost without Return of Premium Rider

Introducing F&G Life’s….Introducing F&G Life’s….

A GREAT SALES OPPORTUNITYA GREAT SALES OPPORTUNITY


Full Commissions!Full Commissions!

Non-MedicalNon-Medical

No Medical ExaminationNo Medical Examination

No BloodNo Blood

No HOSNo HOS

Short-Form ApplicationShort-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 consult ineligible carrier

listlist

Saver’ Select Term Exchange ProgramSaver’ Select Term Exchange Program


The Hottest Term Product in America is Sizzling!The Hottest Term Product in America is Sizzling!

Term to Term exchangeTerm to Term exchange

Up through age 60Up through age 60

Face amounts from $150,000 to $500,000Face amounts from $150,000 to $500,000

Rider’s are transferred if available on Saver’s SelectRider’s are transferred if available on Saver’s Select

Up to 3 additional insureds can be added to 1 policyUp to 3 additional insureds can be added to 1 policy

Can add Can add Return of Premium RiderReturn of Premium Rider

Initial Premium Draft - Initial Premium Draft - NEWNEW

PreferredPreferred class available class available

Saver’s Select Term Exchange ProgramSaver’s Select Term Exchange Program


Simple ProcessSimple Process

Complete Short-form applicationComplete Short-form application

Attached original policy and photocopy of app & Attached original policy and photocopy of app &

medical exammedical exam

Complete transfer of ownership formComplete transfer of ownership form

Complete exchange transmittalComplete exchange transmittal

Initial Premium Draft or PAC if requestedInitial Premium Draft or PAC if requested

State replacement form if applicableState replacement form if applicable

Saver’ Select Term Exchange ProgramSaver’ Select Term Exchange Program


Ineligible Carrier ListIneligible Carrier List Empire GeneralEmpire General

F&G Life (no internal exchanges allowed)F&G Life (no internal exchanges allowed)

Guaranteed TrustGuaranteed Trust

Lincoln BenefitLincoln Benefit

Manhattan NationalManhattan National

The MidlandThe Midland

Merit LifeMerit Life

State LifeState Life

United of OmahaUnited of Omaha

U.S. FinancialU.S. Financial



F&G Life has designed F&G Life has designed Saver’s SelectSaver’s Select to to

aggressively compete in the “neglected” brokerage aggressively compete in the “neglected” brokerage

term marketterm market

Saver’s SelectSaver’s Select exemplifies F&G Life’s commitment exemplifies F&G Life’s commitment

to niche market opportunitiesto niche market opportunities

Saver’s SelectSaver’s Select delivers distinct benefits to your delivers distinct benefits to your

clientsclients

Agents now have a product that they can afford to Agents now have a product that they can afford to

sell with less hassle for you & your customer sell with less hassle for you & your customer

Summary and ConclusionsSummary and Conclusions


““Benefits for your clients if Benefits for your clients if they need them…return of they need them…return of

premium if they don’t”premium if they don’t”

Saver’s Select…..SimplySaver’s Select…..Simply


Saver’s Select Marketing MaterialsSaver’s Select Marketing Materials

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

Documents

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