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Premier Living Benefits Rider

Premier Living Benefits Rider. Are Your Clients’ Life Insurance Policies Primed for Changing Conditions?. MKT12-15 July 2012. Pacific Life Insurance Company.

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Premier Living Benefits Rider

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  1. Premier Living Benefits Rider Are Your Clients’ Life Insurance PoliciesPrimed for Changing Conditions? MKT12-15July 2012 Pacific Life Insurance Company For Life Insurance Producer Use Only. Not for Use with the Public.

  2. Known in the contract as Accelerated Death Benefit Rider for Chronic Illness (Form #R12CII, ICC12 R12CII, R12CIV, or ICC12 R12CIV R12CIU, or ICC12 R12CIU—form number based on product and state in which policy is issued). Benefits paid by accelerating the policy’s death benefit may or may not qualify for favorable tax treatment under Section 101(g) of the Internal Revenue Code of 1986. Tax treatment of an accelerated death benefit may depend on factors such as life expectancy at the time benefits are accelerated, the amount of benefits, the amount of Section 101(g) qualified expenses incurred, or if similar benefits are being received under other contracts. Tax laws relating to accelerated death benefits are complex. Receipt of accelerated death benefits may affect eligibility for public assistance programs such as Medicaid. Clients are advised to consult with their legal and tax advisors for more information. Death benefit, cash surrender value, and any policy debt will be reduced if a benefit is paid. The death benefit is reduced by an amount greater than the benefit payment itself. Additionally, benefits under other riders may be affected by a benefit payment. Riders will likely incur additional charges and are subject to availability, restrictions and limitations. Clients should be shown policy illustrations with and without riders to help show the rider’s impact on the policy’s values. To accelerate death benefit payments, the primary insured must be certified as Chronically Ill (permanently unable to meet 2 of the 6 Activities of Daily Living (ADLs) or requiring substantial supervision due to permanent Severe Cognitive Impairment). About the Premier Living Benefits Rider For Life Insurance Producer Use Only. Not for Use with the Public.

  3. Growing U.S. Health Concern • 7 in 10 Women • 4in 10Men *“Baby Boomers Approach Age 65 – Glumly”, D’Vera Cohn and Paul Taylor, Pew Research Center, December 20, 2010. ** 2011 Sourcebook for Long-Term Care Insurance, American Association for Long-Term Care Insurance. • Average number of Boomers who turn age 65 each day:*10,000+ • Probability of a Chronic Illness in Americans over 65 in their lifetime** For Life Insurance Producer Use Only. Not for Use with the Public.

  4. What Is the Premier Living Benefits Rider? *There is no up-front cost or monthly rider charge. The cost of exercising the rider is that the death benefit is reduced by an amount greater than the rider benefit payment itself to reflect the early payment of the death benefit. Rider benefit payments will reduce the death benefit, cash surrender value, and any policy debt. Additionally, rider benefit payments may adversely affect the benefits under other riders. For Life Insurance Producer Use Only. Not for Use with the Public.

  5. What Determines If Benefits Are Payable? Insured is certified annually by a licensed health care practitioner: • Permanently unable to perform 2 of 6 activities of daily living (ADLs) • Permanent severe cognitive impairment that requires substantial supervision Or For Life Insurance Producer Use Only. Not for Use with the Public.

  6. Products Offering Planned for August, 2012* *Planned dates subject to change. Pacific Life Insurance Company’s: Pacific Indexed Accumulator 4 (PIA 4), Policy form #P11PI4 or ICC11 P11PI4—form # based on state in which policy is issued. Pacific Indexed Accumulator 4 is referred to as flexible premium, indexed adjustable life insurance in the contract. This policy does not directly participate in any stock or equities markets. Pacific Indexed Performer LT (PIP LT), Policy form #P11PIP or ICC11 P11PIP—form # based on state in which policy is issued. Pacific Indexed Performer LT is referred to as flexible premium, indexed adjustable life insurance in the contract. This policy does not directly participate in any stock or equities markets. Pacific Prime VUL is Policy Form #P11P1V or ICC11 P11P1V. Form number is based on state in which policy is issued. Pacific Select Exec V is Policy Form #P09SE5. Versa-Flex NLG is Policy Form #P08VN1, Versa-Flex PRO II is Policy Form #P10VP2. Pacific Prime UL-NLG is Policy Form #P10P1N, Pacific Prime UL is Policy Form #P10P1U. Prime IUL is Policy Form #P11P1I or ICC11 P11P1I - Form number based on state in which policy is issued.  Indexed Universal Life Insurance product does not directly participate in any stock or equities investments. For Life Insurance Producer Use Only. Not for Use with the Public.

  7. Key Features • No Monthly Rider Charge* No Up-front Cost • Death benefit, cash surrender value, and any policy debt will be reduced if a benefit is paid** • No Elimination Period • Immediate payments • No Receipts Required • Indemnity benefit, not a reimbursement benefit*** • *There is no up-front cost or monthly rider charge. The cost of exercising the rider is that the death benefit is reduced by an amount greater than the rider benefit payment itself to reflect the early payment of the death benefit. Rider benefit payments will reduce the death benefit, cash surrender value, and any policy debt. Additionally, rider benefit payments may adversely affect the benefits under other riders. • **The death benefit is reduced by an amount greater than the benefit payment itself. Additionally, benefits under other riders may be affected by a benefit payment. • ***While no receipts are required to be submitted to Pacific Life Insurance Company to financially qualify for benefits, the policyowner should consult his or her tax professional for the appropriate recordkeeping related to his/her tax situation. For Life Insurance Producer Use Only. Not for Use with the Public.

  8. Chronic Illness Riders vs. Long-term Care RidersBoth provide benefits when insured is diagnosed as being chronically ill ill For Life Insurance Producer Use Only. Not for Use with the Public.

  9. How We Compare No Up-front Cost† Elimination Period Receipts †See slide 6. *Issue ages 18-75 for PIP LT and PIA 4 . **Rider does have a 2-year waiting period before claim eligibility starts. ***An elimination period of 3 or 12 months must be selected by the insured at the time of issue. Rider features shown are based on data from all companies as of May, 2012. Competitor information presented based on data received directly from the company and available public data. While we believe it is accurate, we cannot assure you that this is the most current information. Please contact the company for a current illustration and information of its product. Many life insurance products have some flexibility in how they are structured. For example, death benefit coverage under certain products may be provided through a combination of the base policy and any available term or other riders. Each policy selected, illustrated, and sold should be structured based upon your client’s particular insurance needs and financial objectives. It is your responsibility to know that the particular policy selected, illustrated, and sold will best meet your client’s needs and objectives both now and in the future. For Life Insurance Producer Use Only. Not for Use with the Public.

  10. Eligible Eligibility *Issue ages 18-75 for PIP LT and PIA 4. **Subject to additional underwriting. Underwritten as Simplified Issue or Guaranteed Issue Issued as conversions from another product Issued with scheduled face amount increases For Life Insurance Producer Use Only. Not for Use with the Public.

  11. Additional Underwriting For Life Insurance Producer Use Only. Not for Use with the Public.

  12. Save Time! Determine Qualification Use the PRE-QUALIFYING QUESTIONNAIRE (Form #15-40464) For Life Insurance Producer Use Only. Not for Use with the Public.

  13. If Your Client Won’t Qualifyfor the Premier Living Benefits Rider Write in “Remarks” section of the application: “Opt out for Chronic Illness Rider” Opting out helps prevent a Decline Notice (for the rider) from being sent to the client. For Life Insurance Producer Use Only. Not for Use with the Public.

  14. Voluntary Termination After policy issue, the policyowner may cancel this rider for any reason. For Life Insurance Producer Use Only. Not for Use with the Public.

  15. Impact of Policy Features Allowed Allowed Prior to Exercising the Rider After Exercising the Rider: Unscheduled Face Amount increases Death Benefit Option changes, except to Option A (Level) Systematic distributions Overloan Protection II Rider* Return of Premium-2 Guarantee Rider** *Form #R08OLP. Exercising the Premier Living Benefits Rider will terminate the Overloan Protection Rider. **(Form #R11ROP or ICC11 R11ROP—form # based on state in which policy is issued) is referred to as the Term Insurance with Limited Return of Premium Rider in the contract. This rider’s return of premium guarantee is terminated upon exercise of the Premier Living Benefits Rider. Riders will likely incur additional charges and are subject to availability, restrictions, and limitations. Clients should be shown policy illustrations with and without riders to help show the rider’s impact on the policy values. For Life Insurance Producer Use Only. Not for Use with the Public.

  16. Maximum Limit Maximum Annual Benefit Payment is the lesser of: OR *In 2012, the Internal Revenue Service (IRS) Per Diem for chronic illness benefits is $310 a day. While 125% of IRS Per Diem is the rider’s default setting, you may also elect 100% of IRS Per Diem to aid the intent of keeping the benefit payments tax-free. Monthly maximum payments are generally 2% of your eligible death benefit at initial request up to 125% of IRS Per Diem (100% of IRS Per Diem by election). ** If one policy is issued with a Face Amount less than $1.5 million and another policy is applied for, the Face Amount of the second policy would be limited to an amount that would bring the total Face Amount for both policies to $1.5 million. Maximum lifetime accelerated Death Benefit: $1.5 million** Accelerating the entire Death Benefit may terminate the policy For Life Insurance Producer Use Only. Not for Use with the Public.

  17. Taxation Tax laws are complex and an independent advisor should be consulted. Benefits paid by accelerating the policy’s death benefit may or may not qualify for favorable tax treatment under Section 101(g) of the Internal Revenue Code of 1986. Tax treatment of an accelerated death benefit may depend on factors such as life expectancy at the time benefits are accelerated, the amount of benefits, the amount of Section 101(g) qualified expenses incurred or if similar benefits are being received under other contracts. Tax laws relating to accelerated death benefits are complex. Receipt of accelerated death benefits may affect eligibility for public assistance programs such as Medicaid. Clients are advised to consult with their legal and tax advisors for more information. For Life Insurance Producer Use Only. Not for Use with the Public.

  18. Impacting Benefit Amounts • Low Death Benefit, Low Cash Value LESS Chronic Illness Benefit Available MORE Chronic Illness Benefit Available • High Death Benefit, High Cash Value Chronic illness benefits are subject to aggregate eligible death benefit of $1,500,000. This lifetime maximum affects the issue of additional policies on the same insured. If one policy with the rider is issued with a face amount less than $1.5 million and another policy with the rider is applied for the same insured, the face amount of the second policy would be limited to an amount that would bring the total Face Amount for both policies up to $1.5 million. For Life Insurance Producer Use Only. Not for Use with the Public.

  19. PacificPremierCare* Premier LivingBenefits Rider What to consider *Pacific Life Insurance Company’s Pacific PremierCare (Policy Form #P11PPC or ICC11 P11PPC — policy form number based on state in which policy is issued) is a flexible premium adjustable life insurance policy with long-term care insurance payable through reimbursements. Pacific PremierCare is not a Partnership Qualified product. For more information on Partnership Qualified products, please contact your state department of insurance. For Life Insurance Producer Use Only. Not for Use with the Public.

  20. 5 Considerationsfor a Chronic Illness Benefit Primary Goal Benefit Payments Costs Eligibility Waiting Period Death Benefit Protection Premier Living Benefits Rider Indemnity Premier Living Benefits Rider No up-front cost Premier Living Benefits Rider Chronic Illness deemed “permanent” Premier Living Benefits Rider No Waiting Period Premier Living Benefits Rider Reimbursement Pacific PremierCare No Waiting Period for Home Health Care, 90-Day Waiting Period for Facility Care PacificPremierCare Inflation Options Pacific PremierCare One-time Premium (minimum $50,000) Pacific PremierCare Chronic Illness may not be “permanent” Pacific PremierCare Long-Term Care Benefits Pacific PremierCare Specific benefit durations Pacific PremierCare For Life Insurance Producer Use Only. Not for Use with the Public.

  21. About Pacific PremierCare Pacific Life Insurance Company’s Pacific PremierCare (Policy Form #P11PPC or ICC11 P11PPC — policy form number based on state in which policy is issued) is a flexible premium adjustable life insurance policy with long-term care insurance payable through reimbursements. Pacific PremierCare is not a Partnership Qualified product. For more information on Partnership Qualified products, please contact your state department of insurance. Pacific PremierCare is intended to provide federally tax-qualified long-term care insurance as defined in IRC Section 7702B(b). If there are any questions concerning the tax implications of this product, an attorney or qualified tax advisor should be consulted. Exclusions, Exceptions, and Limitations: We will not pay benefits for any room and board, care, treatment, services, equipment, or other items for care or services: 1)provided by the Insured’s Immediate Family unless he or she is a regular employee of an organization which is providing the treatment, service, or care; and the organization receives the payment for the treatment, service or care; 2)for which no charge is normally made in the absence of insurance; 3)provided outside the United States of America, except as described in the International Benefit; 4)that result from an attempt at suicide (while sane or insane) or an intentionally self-inflicted injury; 5)provided in a governmental facility(unless otherwise required by law); 6)for which benefits are available under Medicare or other governmental program(except Medicaid), any state or federal workers’ compensation, employer’s liability or occupational disease law, or any motor vehicle no-fault law. No benefits will be paid for services received while the Accelerated Benefit Rider (ABR) for Long Term Care and the Extended Benefit Rider (EBR) for Long Term Care are not in force. Solicitation of business is not allowed prior to product availability and approval in the state in which the solicitation occurs. Only one premium is necessary to fund Pacific PremierCare. While this product allows additional premiums, they are not required and do not provide additional Long-Term Care Benefits, a greater Return of Premium Benefit, or increased Death Proceeds (unless a subsequent increase in the policy’s cash value requires a death benefit increase to satisfy IRC Section 7702 requirements). Once a sufficient premium has been paid, the long-term care coverage will continue as long as the insured lives; or until the policy is surrendered at the owner’s request; or until the maximum long-term care benefits have been paid; or until policy lapse. Policy charges (cost of insurance and coverage charges) are deducted from the policy’s accumulated value on a monthly basis. Policy lapse will only occur where the policy’s cash value less policy debt is not sufficient to cover monthly policy charges. Prior to lapse, the policy provides 61 days to pay premium sufficient to keep the policy in force. Reimbursements for covered long-term care expenses are subject to an elimination period and are provided by the Accelerated Benefit Rider (ABR) for Long Term Care (Form #R11ABR or ICC11 R11ABR) and the Extended Benefit Rider (EBR) for Long Term Care (Form #R11EBR or ICC11 R11EBR). (Rider form numbers based on state in which policy is issued.) The amount and duration of the maximum long-term care benefits will be based on the benefit options elected at time of application. Coverage elected for longer than two years is only provided through a combination of ABR and EBR. Actual amount and duration of long-term care benefits are based on the use of policy benefits and features. Covered long-term care expenses will be reimbursed until the total long-term care benefits are exhausted, which may vary from the elected duration. Premiums for long-term care benefits will vary depending upon the benefit options elected. Charges for the ABR, EBR, and any Inflation Benefit Option are included in the initial premium payment. The monthly amount reimbursed is the cost of covered long-term care expenses actually incurred, which may be less than the Monthly Maximum Benefit. The Monthly Maximum Benefit may be pro-rated based on the actual number of days that the insured is chronically ill or confined to a facility. For Life Insurance Producer Use Only. Not for Use with the Public.

  22. Benefiting Case Designs LEARN MORE! Use the Sales Applications Enhanced by a Chronic Illness Rider Guide(Form #15-40531) For Life Insurance Producer Use Only. Not for Use with the Public.

  23. Consider Premier Living Benefits Riderfor Clients Seeking *There is no up-front cost or monthly rider charge. The cost of exercising the rider is that the death benefit is reduced by an amount greater than the rider benefit payment itself to reflect the early payment of the death benefit. Rider benefit payments will reduce the death benefit, cash surrender value, and any policy debt. Additionally, rider benefit payments may adversely affect the benefits under other riders. For Life Insurance Producer Use Only. Not for Use with the Public.

  24. This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life Insurance Company, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product availability and features may vary by state. Insurance products and their guarantees, including optional benefits and any fixed subaccount crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company, but they do not protect the value of the variable investment options. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency or their affiliates from which this product is purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company. Variable insurance products are distributed by Pacific Select Distributors, Inc.,(member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third-party broker-dealers. Investment and Insurance Products: Not a Deposit – Not FDIC Insured – Not Insured by any Federal Government Agency – No Bank Guarantee – May Lose Value Pacific Life Insurance Company Newport Beach, CA(800) 800-7681 * www.PacificLife.com MKT12-15 For Life Insurance Producer Use Only. Not for Use with the Public.

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