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Securus Financial Services

Term Conversion Script UL/IUL Script. Securus Financial Services. Setting the Appointment. Introduce yourself referencing F&G policy and/or letter. Confirm info on data card (address) Updates and Options to review(20-30 min) Ask if Spouses/Children also have policies

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Securus Financial Services

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  1. Term Conversion Script UL/IUL Script Securus Financial Services

  2. Setting the Appointment • Introduce yourself referencing F&G policy and/or letter. • Confirm info on data card (address) • Updates and Options to review(20-30 min) • Ask if Spouses/Children also have policies • Have policies ready for review • Make sure spouses/significant others are present at time of appointment

  3. Asset Inventory • Verify correct spelling of name, date of birth, get alternate phone numbers and e-mail addresses. • Verify beneficiaries (gather info for referrals) • Review/Ask about ALL existing life coverage • Mortgage details (liabilities) • Existing Retirement accounts (assets) • Current Income / Disposable Income

  4. Term Conversion Script Level vs. Term Term Conversion bucket sheet

  5. UL/IUL Script UL/IUL Bucket Sheet

  6. When Conversions are not an Option… • Why? • Past the conversion age or term limit • Home Certain • Affordability Issues • What to do… • Replace (F&G, AG) • Supplement (F&G, AG)

  7. Objections • Affordability (only legitimate objection, check Asset Gatherer to verify if true or not) • Need to think about it.. Usually means they don’t understand the IUL (expand on features and benefits) • Feel no need for long term coverage (give examples, tell stories, create doubt)

  8. Contact Info • Laura Estrada • lestrada@securusmail.com • (510) 432-1725 mobile • (510) 742-1210 x. 109 • (510) 742-1112 fax

  9. Securus Financial Services FG Life Series

  10. Securus Financial Services Term Conversions

  11. Old F&G Term Products • Value Select: $250K+, fully underwritten, 15, 20, 30 yr term. Riders: Accelerated Benefit Rider, Child Rider, Disability, Waiver of Premium, Return of Premium. • Savers Select: If issued before Dec 2006: $100K-$250K. If issued after Dec 2006: $50K-$250K. Fully underwritten, 15, 20, 30 yr term. Riders: Extended Premium Guarantee, Accelerated Benefit Rider, Child Rider, Disability, Waiver of Premium and Return of Premium. • Home Certain: $25K-$250K. Simplified Underwriting (Rated table 4). 10, 15, 20, 30 yr term. Riders: Extended Premium Guarantee, Accidental Death Benefit, Child Rider, Disability, Waiver of Premium and Return of Premium.

  12. Minimums on Partial Conversions • Value Select: $250K. Convertible on or before the 10th year. • Savers Select: If issued before Dec/2006: $150K for ages 18-59 & $100K ages 60 & over, if issued after Dec 2006: $25K. Convertible on or before the 10th year. • Home Certain: $25K. Convertible until insured reaches age 70 or end of initial coverage term. • Partial Conversions are allowed with or without ROP on all term products.

  13. FG Term Conversion Guidelines • Minimum amount convertible is $25K for both IUL’s • 50% of contract level to be paid on Home Certain conversion • Full commission on all other eligible products to be paid on conversions during policy year 2 and until the conversion privilege ends.

  14. Fidelity & Guaranty IUL’s • FG Life Choice - Fully underwritten, Issue ages 0-85, Minimum Face Amount $100K. Riders: Accelerated Benefit Rider, Accidental Death Benefit, Child Rider, Waiver of Monthly Deduction, Ultimate Income Rider, Over-loan Protection Rider. Designed for moderately funded, pay-all-years cases as well as the max-funded, pay short cases. Moderate target premiums. • FG Life Elite – Fully underwritten, Issue ages 0-85, Minimum Face Amount $50K. Riders: Accelerated Benefit Rider, Accidental Death Benefit, Child Rider, Waiver of Monthly Deduction, Ultimate Income Rider, Over-loan Protection Rider, Primary Insured Level Term Rider. Designed for the max funded, short pay cases. High target premiums and cash values with persistency bonuses. • NO medical underwriting required for conversions UNLESS riders are being added or carried over or if client wishes to change tobacco status. • ONLY rider that is convertible is the Accelerated Benefit Rider with the exception of the Home Certain.

  15. Illustrations FG Life Choice FG Life Elite

  16. Application Process • Verify correct spelling of clients name • Verify SSN • Verify Beneficiary information • Determine new effective date (effective date has to be within 30 days of signature date) • Fill out app at time of the appointment (Policy Change App, PAC form and In Lieu of Illustration) • Verify the bank account information and pick up void check if new account will be used. • No premium required at time of sale

  17. Contact Info • Laura Estrada • (510) 742-1210 x. 109 • (510) 432-1725 mobile • lestrada@securusmail.com • Rochelle Balthazar • (510) 742-1210 x. 108 • rbalthazar@securusmail.com

  18. What is Fixed Indexed Universal Life Insurance? • Permanent life insurance which differs from other traditional products in the way the interest earnings on the account values are determined. With an FIUL product, you can direct the account value into a fixed account (declared by the company), an indexed account (determined by performance of S&P 500, subject to a cap) or a combination of the two. The attractive feature of the indexed account is the potential to earn higher interest rates of return based on the index’s performance while being guaranteed that the earnings will never be less than 0.00%.

  19. Fidelity & Guaranty FIUL’s • FG Life Choice - Fully underwritten, Issue ages 0-85, Minimum Face Amount $100K. Riders: Accelerated Benefit Rider, Accidental Death Benefit, Child Rider, Waiver of Monthly Deduction, Ultimate Income Rider, Over-loan Protection Rider. Designed for moderately funded, pay-all-years cases as well as the max-funded, pay short cases. Moderate target premiums. Flexible DB, may change once a year in $5000 increments. Increase allowed after 1st yr (subject to underwriting), decrease allowed after 3rd yr. DB may not be reduced below $25,000. • FG Life Elite – Fully underwritten, Issue ages 0-85, Minimum Face Amount $50K. Riders: Accelerated Benefit Rider, Accidental Death Benefit, Child Rider, Waiver of Monthly Deduction, Ultimate Income Rider, Over-loan Protection Rider, Primary Insured Level Term Rider. Designed for the max funded, short pay cases. High target premiums and cash values with persistency bonuses. Flexible DB, may change once a year in $5000 increments. Increase allowed after 1st yr (subject to underwriting), decrease allowed after 3rd yr. DB may not be reduced below $25,000.

  20. Outstanding Features • Life Choice/Life Elite • Tax Benefits : Income tax free insurance benefits, tax deferred growth on account values, possible tax advantaged access to account values. • Upside Potential : Ability to earn interest based on performance of the S&P 500 index, subject to a cap and without any downside risk. • Flexible Death Benefits : Level or Increasing, may switch option based on changing needs of client. Subject to underwriting if switching to increasing. • Liquidity : Access to surrender value through withdrawals or loans. • Flexibility : Ability to adjust premiums up or down, subject to limits. • No-LapseGuarantee : A 15 yr guarantee the contract will not lapse as long as required premiums are paid. • Persistency Bonus : Beginning in the 11th yr of coverage, F&G will credit a 0.25% bonus to the fixed and indexed account value, if the then current fixed index rate exceeds the guaranteed minimum.

  21. Optional Benefits & Riders • Accelerated Benefit Rider - (Only rider allowed on conversion, except on Home Certain. Free rider) If terminally ill, given access to 50% of death benefit up to a maximum of $250K. Remaining coverage paid out at clients death. • Accidental Death Benefit- Increases benefit in event of accident-related death, may not exceed the lesser of the contract face amount or $250K. • Child Rider- Provides term life insurance for the insured’s children until they reach the age of 25. Max coverage, $10K/child. Rider convertible to permanent coverage within 31 days of child ceasing to be covered. Amount convertible may be up to five times the amount of the rider without underwriting.

  22. Optional Benefits & Riders • Waiver of Monthly Deduction- Waives monthly premiums in the event insured becomes totally disabled for longer than six months. • Over Loan Protection- (Free rider) Prevents policy from lapsing as a result of outstanding loans that exceed surrender value. • Ultimate Income Rider- Allows designation of how death benefit will be paid. Instead of single lump sum, payments can be distributed for years. • Level Term Insurance (On Life Elite only. Non-commissionable)- Designed to help minimize contract charges in order to maximize contract values and income distributions for heavily funded sales. Available up to nine times the face amount on the base coverage and is available only on the primary insured.

  23. Index Crediting & Interest Rates • Basic Account Value: Accumulates with premiums paid up to target premium. • Excess Account Value: Accumulates with premiums paid above target premium. • Index Crediting Method: Annual point-to-point with reset. • Account Allocation Options : (1) S&P 500 Index, subject to cap (2) Fixed interest account, declared yearly. Allocations may be changed on policy anniversary, subject to 30 day notice • Participation Rate: Guaranteed to be 100% or 140%, depending on client election • Minimum Guaranteed Cap: 3% for 100% PR and 2% for 140% PR (currently 12% and 11% respectively) • Minimum Guaranteed Account Value Interest Rate: 0.00%

  24. Access to Account Values • Full Surrender:Account value minus surrender charges and/or outstanding loans. • Surrender charges apply & decrease to zero over first 15 years of contract. • Surrender charge waiver: no surrender charge applies to premium added to your account value that exceeds target premium. • Partial Withdrawals: Can be made after first contract year, providing surrender value is positive. Withdrawals will reduce death benefit by an equal amount. Withdrawals may be taxable (over cost basis).

  25. Access to Account Values • Loan Options: Available after 1st contract year with no limit to number of loans that can be taken, provided there is uncollateralized surrender value. • Fixed Loan: For loans made in yrs 2-10, interest charged is 8%. Account value used as collateral to cover the loan is moved into a fixed interest account where it is guaranteed to earn 6%. The net cost of the loan is 2%. After the 11th yr, preferred loans are available on the surrender value in excess of the no-lapse guarantee premiums paid. The interest charged is 6%. Collateralized amount receives 6% in fixed interest account, making net cost of loan 0%.

  26. Access to Account Values • Variable Loan: The rate on the loan is based on Moody’s Corporate Bond Yield Average Index(Max rate on Choice – 6.5%, Max rate on Elite – 5.0%). Variable loans can be made after the 1st contract yr. Unlike the fixed option, the account value used as collateral may continue to earn interest and/or index credits in the same proportion as the unloaded portion of your total account value. Ultimately, you may continue to earn interest and/or index interest credits up to the cap for that index crediting period. Variable loans are a higher risk option that may have either a positive or negative outcome relative to a fixed loan.

  27. Illustrations

  28. Securus Financial Services American General

  29. American General Term • AG Select-a-Term • Fully customizable from 10 yr term through 30 yr. • Minimum death benefit $100,000. Policy expires at age 95 or at the end of the level premium period. Renewable until age 95. • Issue ages 20-80 depending on level term period. • Available riders: • Accidental Death : Can be equal amount up to 250K, double indemnity if it happens on a common carrier, expires at age 70, can be dropped or added after issue. • Child Rider: Available for parents age 20-55 and child’s age 15 days or more-19 yrs of age. Min $500-$25K. Expires at age 25. Rider can be added or dropped after issue. • Terminal Illness Rider: Up to 50% access (max $250K) if diagnosed with less than 12 months to live. Will reduce the amount of any death benefit that may be payable. • Waiver of Premium: Waives premiums for base policy and attached riders upon total disability after a four month waiting period. Not available on face amounts over $5 million. Available through table D and until the insured’s 65th birthday or the end of the term period. Rider can not be added after issue, but can be dropped.

  30. American General Term • AG ROP Select-a-Term • Surrender policy for cash value, which is guaranteed to equal cumulative base premiums paid, at the end of the level premium period, less any outstanding policy loans. (15 yr through 35 yr term) • Minimum death benefit: $100,000 • Issue ages 20-55 depending on level term period • Available Riders: • Accidental Death : Can be equal amount up to 250K, double indemnity if it happens on a common carrier, expires at age 70, can be dropped or added after issue. • Child Rider: Available for parents age 20-55 and child’s age 15 days or more-19 yrs of age. Min $500-$25K. Expires at age 25. Rider can be added or dropped after issue. • Terminal Illness Rider: Up to 50% access, max $250K if diagnosed with less than 12 months to live. Will reduce the amount of any death benefit that may be payable. • Waiver of Premium: Waives premiums for base policy and attached riders upon total disability after a four month waiting period. Not available on face amounts over $5 million. Available through table D and until the insured’s 65th birthday or the end of the term period. Rider can not be added after issue, but can be dropped.

  31. American General UL/IUL’s • Elite UL • Flexible premium, adjustable death benefit universal life insurance contract maturing at age 121. • Competitively priced for both individual and business needs, • Issue ages 0-90, minimum death benefit $100,000. • 10 yr. no lapse guarantee, 5 yr. if over the age of 70. • Three death benefit options – level, increasing and return of premium. • Decreasing 19 yr surrender schedule. • Interest rate on loans 3.85%, min loan repayment amount $10 • Withdrawals available after 1st policy yr. Death benefit cannot be reduced below $100,000 due to a withdrawal. • Minimum guaranteed interest rate is 3.00%. A current interest bonus of 0.25% will be credited after the 5th policy year. Bonus will be credited as long as the current interest rate is greater than the guaranteed interest rate.

  32. American General UL/IUL’s • Available Riders • Accidental Death Benefit: $25K-$200K or initial sum insured, double indemnity if death occurs as a fare-paying passenger on a licensed public conveyance. • Children’s Insurance Benefit: 1-10 units, up to but not including age 19 • Spouse/Other Insured Rider: $10K-2x the base policy • Terminal Illness Rider: Access to 50% of DB, max $250K if less than 12 months or less to live. • Waiver of Monthly Deduction Rider: Waives monthly deduction after the insured has been disabled for longer than 6 months, not available on face amounts over $5 million. • Waiver of Monthly Guarantee Premium Rider: Credits an amount equal to the monthly guarantee premium in case of total disability. • Maturity Extension Rider: Policy owner may extend the policy’s maturity date beyond what it would be otherwise. • Over-loan Protection Rider: Guarantees base policy will not lapse due to an outstanding loan. Can be activated at later of attained age 75 or 15th policy anniversary.

  33. American General UL/IUL’s • AG Choice Index GUL • Guaranteed death benefit coverage up to age 121. • Flexible Continuation Guarantee allows selection of guarantee period and premium funding period. • Unique, highly competitive product focused on cash accumulation. • Allocate premiums among 3 interest crediting options : • 1-Year index interest crediting based in part on the one-year point-to-point growth in a domestic index with a cap rate and guaranteed interest rate of 1 percent. • 5-Year index interest crediting based in part on three external indices (S&P 500, Hang-Seng, Euro-Stoxx) with automatic overweighting of the two best-performing indices with participation rate and guaranteed interest rate of 1 percent. • Declared Interest Account with a minimum guaranteed interest rate of 2 percent.

  34. American General UL/IUL’s • Option of Standard Loans or Choice Loans to access policy cash values. • Standard Loans: Effective annual loan rate is 4.00 percent (3.85% payable in advance). Removed from the Declared Interest or Index Accounts. Accumulation value offset by a policy loan will earn interest at 3.00%. Net cost of loan is 1%. • Preferred loans : Effective annual loan rate is 6%. Available after 10th policy year. On a current basis, net cost will always be less than the net cost of a Standard Loan. Not removed from Declared Interest or Index Accounts. Policy values continue to be credited declared and/or index interest . Interest credited to Index Accounts may be higher or lower than loan interest charged .

  35. American General UL/IUL’s • Available Riders • Accidental Death Benefit: $25K-$200K/or initial sum insured, double ADB if death occurs as a fare-paying passenger on a licensed public conveyance. • Children’s Insurance Benefit: 1-10 units, up to but not including age 19. • Spouse/Other Insured Rider: $10K-2x the base policy. • Over-loan Protection Rider: Guarantees base policy will not lapse due to an outstanding loan. Can be activated at later of attained age 75 or 15th policy anniversary. • Terminal Illness Rider: Access to 50% of DB, max $250K if less than 12 months to live. • Waiver of Monthly Deduction Rider: Waives monthly deduction after the insured has been disabled for longer than 6 months, not available on face amounts over $5 million.

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