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Business Reducing Term Unique Product, Unique Opportunity

Business Reducing Term Unique Product, Unique Opportunity FOR AGENT AND BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 8510-4-07. The Opportunity…. Do you have business owner clients who have… Borrowed money for an expansion? Recently purchased a business or practice?

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Business Reducing Term Unique Product, Unique Opportunity

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  1. Business Reducing TermUnique Product, Unique Opportunity FOR AGENT AND BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC 8510-4-07

  2. The Opportunity… Do you have business owner clients who have… • Borrowed money for an expansion? • Recently purchased a business or practice? • Offered a guaranteed employment contract to a key employee? 2

  3. Do you have the only domestic product solution designed to cover these obligationsin the event of total disability? Yes – absolutely: Guardian’s Business Reducing Term* product Business Reducing Term, policy form AH55-A, is provided by The Guardian Life Insurance Company of America, New York, NY. Product provisions and features vary from state to state. The Opportunity…is Guardian 3

  4. What is Business Reducing Term? Insures against a total disability that prevents your client from meeting fixed obligations*: • Business loans, where repayment depends on talents of a key individual • Purchase agreements • Salary or performance guarantee contracts *financial obligations requiring periodic payments and expiring at a given time. 4

  5. Overhead Expense isNOT the right answer! And, assigning personal IDI coverageto protect these obligations is ill advised 5

  6. A Disability Can Happen… You’ve identified the need for business life insurance But did you know? • A male aged 35 years is 4.1 times more likely to be disabled before age 65 than he is to die* • At age 45, the odds are 4.4 to 1* • Disability of the owner is a leading cause of small business failure** *Commissioner’s Individual Disability Table, 1985, and Commissioner’s Standard Ordinary Mortality Table, 1980. Statistics vary depending on the applicant’s gender, age, occupation and medical history. **LIMRA International 6

  7. BRT: The 100% Solution BRT covers… • Loan obligations: up to 100% of the monthly payment • Employment contracts: up to 100% of the after-tax cost of contract payments • BRT coverage issued in addition to personal DI 7

  8. Selling Business Reducing Term • Find the obligation and you’ve found the sales • Owners and professionals know they are “on the hook” • Separate the specific loan obligation from other “overhead expenses” 8

  9. $25,000 $1,000 Face Amount Monthly Indemnity Full Amount Payable Until Issue Term Ends $0 Issue Term Ends $0 How Does BRT Work? DECREASING TERM LIFE INSURANCE REDUCING TERM DISABILITY INSURANCE 9

  10. How Does BRT Work? • Conditionally renewable to end of specified term • renewal refused only if lack of insurable interest or reduction/termination of economic need for the policy • your obligation: conduct an annual review • Premiums are level & sex-distinct • Available in all states except FL, MT, NC, SC, VA 10

  11. How Does BRT Work? • Coverage lasts for a specified term • 5 to 30 years • policy term = length of the obligation • coverage cannot extend beyond age 60 • Elimination Periods: 1, 2, 3, 6, 12 months • Benefits paid during disability up to the end of the specified term 11

  12. How Does BRT Work? • Benefits payable directly to the “loss payee” • Loss payee = holder of the obligation • Indemnity policy – not reimbursement • Issue ages: 18 to 55 (age last birthday) • Issue limits: • Minimum: $1,000/mo. ($500 if other Guardian or Berkshire coverage in force) • Maximum: $22,500/mo.* *Maximum available issue limit determined by duration of the financial obligation. 12

  13. BRT Maximum Issue Limits Term BRT Term BRT (In Years) Issue Limit (In Years) Issue Limit 5 $22,500 6 $19,500 7 $17,100 8 $15,300 9 $14,100 10 $12,900 11 $12,000 12 $11,400 13 $10,800 14 $10,200 15 $ 9,600 16 $ 9,300 17 $ 9,000 18 $ 8,700 19 $ 8,400 20 $ 8,100 21 $ 7,860 22 $ 7,740 23 $ 7,500 24 $ 7,380 25 $ 7,260 26 $ 7,140 27 $ 7,020 28 $ 6,900 29 $ 6,780 30 $ 6,660 13

  14. How Does BRT Work? • Total disability only • “unable to perform all the substantial and material duties of your occupation; and, you are not actually at work in any occupation or profession.” • Premiums waived during total disability lasting more than 90 days 14

  15. Applying for BRT is Easy • Proof of obligation • loan agreement, employment contract, etc. • Streamlined medical underwriting • Use application form #DI AP-2003 • California only: Guardian form #AP2-96 CA • Applications at Berkshire e-Forms Center • Agency administrators will direct all BRT applications to the Spokane Underwriting unit • Submit combination IDI & BRT applications to the Pittsfield office 15

  16. Marketing & Sales Support • Client brochure (Pub1623) • Imprintable ads, flyers and pre-approach letters that can be viewed and ordered through the Marketing Tools Catalog available on www.berkshirelifetools.com • National Sales and Product Support Center: • 866-590-8845, select option 1 • product_support@berkshirelife.com 16

  17. Business Reducing TermDisability Insurance toProtect Your Business Obligations 17

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