For producer use only. Not for distribution to the public. PROVIDING CLIENTS THE CONTROL &...

For producer use only. Not for distribution to the public.

PROVIDING CLIENTS THE CONTROL & FLEXIBILITY

THEY NEED

Mark StuevenNational Sales Director

CRB 174 0713

For producer use only. Not for distribution to the public.2

Consumer Concerns

• Healthcare Costs

• Financial Security

• Assets

• Illness

• Long Term Care


Consumer Are Looking For…

Flexibility Control


How to address these?

What Makes Them Feel Out of Control?

• 27% of Affluent Americans support either an adult child or a parent.

• 35% worry about having to care for a parent in their later years.

• The “oldest old” >85 will triple over the next 50 years.

Source: Affluent Insights Survey, Merrill Lynch, September 2012

United States Census Bureau, December 2012


How Can They Get Back in Control?

Living Care


Transamerica Living Care Solutions

Term with Living Benefits

Rising healthcare costs

Temporary need for life insurance

Economical

Guaranteed premiums for term of contract

Simplified underwriting available

GUL with LTC rider


Permanent need for life insurance

Leave a legacy

Guaranteed premiums

Trendsetter LB

TransACE with LTC Rider


Why Living Care?

1”About Heart Attacks” American Heart Association. 12 June 2011. http://www.heart.org/HEARTORG/Conditions/HeartAttack/AboutHeartAttacks/About-Heart-Attacks_UCM_002038_Article.jsp (24 April 2012).

2”Impact of Stoke” American Stoke Association. 18 April 2012. http://www.strokeassociation.org/STROKEORG/AboutStroke/Impact-of-Stroke_UCM_310728_Article.jsp (24 April 2012).

3”Cancer Facts & the War on Cancer” National Cancer Institute. 2012. http://training.seer.cancer.gov/disease/war/ (24 April 2012).

4Saad, Lydia, Gallup. Chronic Illness Rates Swell in Middle Age, Taper Off after 75. April 29, 2011.

Every 34 sec. = 1 heart attack1

Every 30 sec. = A new cancer is diagnosed3

Every 40 sec. = 1 stroke2

Nearly a quarter of people in their 40’s have at least one chronic illness.4


The Financial Impact of Illness

The cost of severe heart attack – including direct and indirect costs – is about $1 million.1

60% of all bankruptcies are due to medical issues. Of those that file for bankruptcy, nearly 80% of had health insurance.2

One in twelve people with cancer delayed or turned down recommended care because of cost.3

Alzheimer’s is the most expensive problem in the U.S., costing families and society $157 billion to $215 billion a year.4

1Shaw 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, 2006 2006;114(9):894-904.

2http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm

3“National Survey of Households Affected by Cancer” The USA Today/Kaiser Family Foundation/Harvard School of Public Health, November 2006. http://www.kff.org/kaiserpolls/upload/7591.pdf (13 April 2012).

4http://www.lifehealthpro.com/2013/04/04/study-dementia-tops-cancer-heart-disease-in-cost

http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm


Why Accelerate Benefits?

Access to cash when clients need it mostHealth insurance coverage limitsExperimental treatment needsAccommodation needs (wheelchair/ramp, home modifications, home care/hospice, artificial appendages)Protect retirement savingsIncome replacementHelp avoid financial hardship due to medical expenses


Living Benefits

Access to cash, from a life insurance policy, for expenses related to chronic, critical or

terminal illnesses, while the insured is alive.

*Benefits are based on an insured incurring a chronic, critical or terminal illness as defined in the policy. Refer to the policy contract for complete requirements.


Transamerica’s Trendsetter® LB

Trendsetter LB has Living Benefits: Critical, Chronic and Terminal illness ADBs are embedded in the product1

• 10, 15, 20, 25 and 30 year initial level premium periods

• Non-med underwriting for coverage amounts between $25K to $249,999

• Fully underwritten options up to $999,999

• Monthly Disability Income Rider

• Age last birthday issue ages

1Note: Subject to state availability. Some ADBs are not available in some states.


Male, age 40; 30-yr, $500,000 DB; Pref N/S

Minimal Price Difference

Terminal ADB

Chronic ADB

Critical ADB

Death Benefit

Term w/o LB

Monthly Premium

DifferentialDeath Benefit

Trendsetter LB

$69.56 $75.69$6.13


Male, age 50; 20-yr, $300,000 DB; Standard N/S

Minimal Price Difference

Terminal ADB

Chronic ADB

Critical ADB

Death Benefit

Term w/o LB

Monthly Premium

DifferentialDeath Benefit

Trendsetter LB

$97.91 $107.89$9.98


Living Benefits = Accelerated Death Benefits

Chronic Illness ADB

Critical Illness ADB

Terminal Illness ADB

• Inherent in all policies and risk classes up to max issue age of base product

• No additional upfront costs (administrative charge assessed at time of each claim)

• Maximum lifetime amount an insured may accelerate is $500,000 for all three ADB options and for all policies issued

• No additional underwriting for living benefits


Critical Illness ADB Example

Dale, 40, Standard Non-smoker

• Has a $200K, 30-year Trendsetter LB policy issued in 2013

• Dale suffers a serious heart attack at age 45

• Dale’s life expectancy is estimated to be 10.5 years by the company, and he elects to accelerate 90% of his death benefit



Critical Illness ADB Example

Premiums paid by Yr 5=

$4,274

Cash received from Living

Benefits = $115,418

Death benefit remaining for the family = $20,000

*Benefits provided through the Living Benefits, including the critical, chronic and terminal illness accelerated death benefit riders, are subject to certain limitations and exclusions. Amounts payable under the benefits vary based in part on the nature and severity of the Insured's health condition and the Insured's remaining life expectancy at the time of the acceleration. Refer to the rider for complete details.For producer use only. Not for distribution to the public.


Important Things to Remember

• Key messages

Life insurance for the living

Access to cash in times of need

Minimal price difference

• Talk to new markets

Younger families


Transamerica Living Care Solutions

Term with Living Benefits


Temporary need for life insurance

Economical

Guaranteed premiums for term of contract

Simplified underwriting available

Trendsetter LB

GUL with LTC rider


Permanent need for life insurance

Leave a legacy

Guaranteed premiums



Long Term Care Rider Overview

Helps offset expenses incurred for long term care of the insured

Accelerates base policy death benefit for qualified LTC expenses

If LTC benefits are exhausted, beneficiaries can still receive a residual death benefit

Guaranteed level LTC Rider charges for the life of the policy. Charges will be waived while LTC benefits are being received*

*All other policy Monthly Deductions continue


TransACE® with LTC Rider Details

Benefit Type: Indemnity Style (proof of care required)

Minimum/Maximum Face Amounts: $25,000/$1,000,000

LTC Specified Amount must equal base policy face amount

Death Benefit Option: Level Death Benefit only

Issue Ages: 18 – 80 (age nearest)

Underwriting: Base policy must be rated Table D or less. LTC Rider is separately underwritten

Rider: LTC rider can be added in conjunction with all other riders and endorsements. Rider only available at policy issue


Gary, age 45

• Planning for retirement

• Married with two teenage children

Concerns

• Wants to provide kids with financial security, but is unsure of the amount

• He wants to provide for his own LTC coverage (just in case)

• Wants flexibility to reevaluate needs in the future

TransACE® with LTC Rider Scenario

Add Photo


TransACE® with LTC Rider Scenario

Benefits

Guaranteed death benefit1

Long term care protection2

Flexibility3


TransACE® policyat $500K face amount

with LTC Rider.

$500K w/ LTC

$500,000 Total Benefit

TransACE® with LTC Rider Scenario:Guaranteed Death Benefit

BeneficiariesChildren

Gary


TransACE® with LTC Rider Scenario:Long Term Care Protection

Throughout his Lifetime

TransACE®

with LTC RiderLong Term Care

Benefits

Long Term Care Protection

Gary


MultiFlex Surrender Endorsement (MSE)

Client would receive the lesser of 100% of gross premiums paid OR 33% of lowest face amount

15th Anniversary 20th Anniversary

25th Anniversary

Surrender value will be the lesser of 100% of gross premiums paid less any refunds, partial surrenders, and outstanding policy loans or 33% of the lowest face amount less any outstanding loans and any partial surrenders during the 60-day period following the 15th or 20th policy anniversary, or at any time on or after the 25th policy anniversary. Subject to minimum funding requirements.


MSE Advantages

Advantages

• Flexibility to fully surrender the policy in applicable years for an enhanced surrender value

• Built-in options to adapt to policy owners’ changing needs

• No additional cost to the policy owner


TransACE®

with LTC RiderMultiFlex Surrender Endorsement

$ 94,640

TransACE® with LTC Rider Scenario:Flexibility

At Retirement - age 65 (year 20)

Flexibility

Gary

*Enhanced surrender value is the lesser of 100% of gross premiums less any refunds, partial surrenders, and policy loans, or 33% of the lowest face amount minus policy loans and any partial

surrenders that did not reduce the face amount. Minimum funding requirements must be met.

25th Policy Anniversary $ 118,300


Important Things to Remember

• Key messages

Guaranteed death benefit

Long term care protection

Flexibility

• Talk to new markets

Individuals approaching retirement or retired

Single individuals/living alone


Providing Clients Control & Flexibility

Living Care

Trendsetter LB

• Life insurance for the living

• Access to cash in times of need

• Minimal price difference


• Permanent coverage

• Guaranteed premiums

• Flexibility to reevaluate needs in the future


Thank you for joining us!


Trendsetter® Super Series (Policy Form Nos. 1-322 11-107, 1-306 11-107, 1-305 11-107, 1-304 11-107, 1-303 11-107, and 1-334 11-107), and Trendsetter® LB (Policy Form No. TL19) are term life insurance policies issued by Transamerica Life Insurance Company, Cedar Rapids IA 52499. Premiums increase annually for YRT and 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 forms and numbers may vary, and these policies may not be available in all jurisdictions. Insurance eligibility and premiums are subject to underwriting.

TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. ICC12 UL07 or UL07 (CVAT). Policy form and number may vary and this policy may not be available in all jurisdictions.

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 June 2013.

CRB 174 0713

For producer use only. Not for distribution to the public. PROVIDING CLIENTS THE CONTROL &...

Documents

Transcript of For producer use only. Not for distribution to the public. PROVIDING CLIENTS THE CONTROL &...