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What is the Fastest Growing Market?

What is the Fastest Growing Market?. Fidelity and Guaranty Life's answer is: HomeCertain. “ Pays Your Mortgage if You Die -- Refunds Your Money if You Live”. Consumers HomeCertain provides the flexible, comprehensive coverage I need to ensure the security of my family and their home.

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What is the Fastest Growing Market?

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  1. What is the Fastest Growing Market? Fidelity and Guaranty Life's answer is: HomeCertain

  2. “Pays Your Mortgage if You Die -- Refunds Your Money if You Live” • Consumers • HomeCertain provides the flexible, comprehensive coverage I need to ensure the security of my family and their home. • HomeCertain provides the protection I need, when I need it, and refunds my money if I don’t. • Agents • HomeCertain is the easiest mortgage term product for me to sell. • HomeCertain provides the flexible, comprehensive, competitively priced coverage my clients need to ensure the security of their families and homes. HomeCertain Product Positioning

  3. Target Market • New and existing homeowners • Ages 30-50 • Married couples with a combined income of $50,000-$100,000 • Average face amount expected to be $110,000

  4. HomeCertain: Product Highlights • Competitive rates • Fully guaranteed rates available • “New”expanded issue ages • More riders, more stories to tell • Liberal preferred underwriting • More policies issued as applied for • Ratings up to table D accepted as standard • Faster turnaround time • Commissionable policy fee

  5. HomeCertain’s Policy Design • 10, 15, 20, 25, or 30-year term • Rates guaranteed for 15 years on 30 year level term, for 5 years on all other plans (can be extended by rider) • Level and decreasing versions • Tremendous selection of riders • Premium guarantee rider • Money back return of premium rider • Critical illness protection rider • Other insured rider • Disability protection rider • Waiver of premium - disability • Waiver of premium - unemployment • Ultimate income endorsement • Accidental death benefit rider • Child’s level term life rider

  6. HomeCertain Policy Design • Issue Ages (age last birthday) 5 Year GuaranteeFull Term Guarantee 10 year plan 20 - 60 20 - 60 15 year plan 20 - 70 20 - 65 20 year plan 20 - 55 20 - 55 25 year plan 20 - 50 20 - 50 30 year plan 20 - 65 20 - 50

  7. HomeCertain Is Easy to Sell • Simple premium class structure • Ratings up to table D accepted as standard • 5 business day turnaround time on non-medical cases • On face amounts up to $250,000 there is no paramed exam, but we do require: • The mortgage must be 13 months old or less; • The face amount may not exceed 125% of mortgage amount • Face amounts as low as $25,000 • Commissionable policy fee

  8. HomeCertain Is Easy to Sell • What is a valid mortgage lead? • A lead card containing mortgage information • A copy of the mortgage paperwork signed by the applicant • A signed copy of the closing statement on the home that shows the mortgage balance • A copy of the mortgage payment coupon • A copy of Fidelity & Guaranty Life’s referral form • Note that the mortgage balance and origination date must be shown

  9. HomeCertain Is Easy to Sell • Fidelity & Guaranty Life’s Mortgage certification form Mortgage certification form I hereby certify the following information is correct: Name _____________________________________ Address ___________________________________ Phone # ___________________________________ Loan # ____________________________________ Loan Amount _______________________________ Mortgage Origination Date ____________________ Financial Institution __________________________ Referred By ________________________________ I understand that I am applying for a life insurance policy that is available to homeowners who have secured a mortgage loan in the last 13 months. I hereby certify that the above information is true and correct Date __________________________ ___________________ __________________ Applicant Agent All information must be completed.

  10. HomeCertain Base Policy Designs Decreasing Term Product • Same as level product except: • Face amount decreases using a 10% mortgage amortization schedule • Decreasing stops once death benefit falls to half the initial face amount • Lower premiums than the level term • Issue ages 20-45 on 30 year term, 5 year premium guarantee • Premium guarantee rider not available • Ultimate income rider not available

  11. Opportunity to Earn More Commissions • Sell HomeCertain at 125% of mortgage and increase your commissions • Help clients provide life insurance protection for auto loan and consumer debt • Remember with money back provision your client receives a return of their premium

  12. HomeCertain Riders Money Back Rider • Concept: If you don’t need the insurance, we give you all of your money back at the end of the initial term • Partial money back available for early lapses after 5 policy years • Not available for 10 year level term period plan • Available at issue only • Return of premium paid will be reduced by any amount paid under any rider not to exceed total premium paid • Typically increases the premium by 30% on the 30- year term, by 50% on the 25- year term, by 90% on the 20-year term, and by 144% in the 15- year term • Terminates at end of initial term; rider benefit is transferable

  13. Money Back Rider • Concept: Coverage for your client if they need it…return of premium if they don’t! • Available at issue only • Typically increases the premium by 30% on the 30- year term, by 90% on the 20-year term, and by 144% in the 15- year term

  14. HomeCertain Riders • Full money back is paid only if the policy is kept in force to the end of the term period • No money back is paid for early lapses in the first 5 policy years • Partial money back is available for early lapses after 5 policy years, in the following percentages of premiums paid: Money Back Rider

  15. Accidental Death Benefit • The beneficiary can receive an additional death benefit of 50% of the face amount in the event of certain accident related deaths of the insured • No Cost Benefit - HomeCertain • Issue ages 0-60 (age last birthday) • May be added at any time with evidence of insurability • Maximum benefit up to $250,000

  16. Children’s Level Term Life Rider • One premium is charged for all covered children • Issue ages: 15 days through 18 years of age; age last birthday • Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000 • If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25. • Convertible to age 25.

  17. Critical Illness Protection Rider • Accelerates payout of the death benefit not to exceed 50% or $250,000 which ever is less • Policy owner selects the amount at issue • Upon the diagnosis by a physician of: life threatening cancer, heart attack, stroke, paralysis, renal failure, major organ transplant, loss of sight, loss of two or more limbs • Issue ages: same as base plan; age last birthday • Must complete a supplemental questionnaire

  18. Disability Protection Rider • Monthly benefit is limited to the lesser of: • $1,500 monthly or • 1.5% of the life insurance amount • 66 2/3% of monthly pay • 2 year benefit with a 90 day waiting period • Issue ages: 20-55 • Coverage terminates on policy anniversary following insured age 60 • Available on primary insured and spouse

  19. Extended Premium Guarantee Rider • Makes the premium rates for the base life coverage fully guaranteed for the 10, 15, 20, 25, or 30 year term period • Adds approximately 20% to the price of the base life coverage • Extended premium guarantees do not affect policy riders: Rider prices are already guaranteed, except for Disability Protection and Critical Illness, which do not have guaranteed premiums • Available on the level HealthCertain product only

  20. Other Insured Rider • Up to 4 people can be insured under the same policy • Ideal for families and businesses - allows policyowner to add or drop insureds as needed • Death of one insured does not affect coverage on others • Face amounts may vary by individual • Available for all term periods

  21. Unemployment Protection Rider • If unemployment lasts greater than one month, premiums are waived for the next six months as long as the unemployment continues • Issue ages: 20-65 for primary insured only; age last birthday • No cost benefit • The rider is attached automatically in all states where approved

  22. Waiver of Premium Rider • Protects a policy owner from losing insurance during periods of prolonged disability of the primary insured • Issue ages: 20-55 for primary insured only • 180 day waiting period; disability must begin before age 60 • May be added at any time with evidence of insurability • Total disability is defined as “any occupation” definition; continuing proof of disability required

  23. Ultimate Income Endorsement • Ideal for Income Replacement Sales • Easier for your client to understand • Selling Income - Not Face Amount • Flexibility in Death Benefit Payment • Usually results in sizable discount over traditional capital approach to needs determination Consider the following example...

  24. Ultimate Income Endorsement • 40 year old Male Preferred Non-Tobacco • Needs $100,000 @ death for immediate cash needs • Also 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 end of 25 years. • A traditional capital needs approach would cost $1,156 • With the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of $877 which represents a savings of 24%.

  25. Ultimate Income Endorsement • The Ultimate Income Rider allows the policyholder to designate how the 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 needs • 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 This benefit calculation is software supported

  26. Ultimate Income Endorsement • Can be changed at any time by Owner • Guarantees Income at a time it is needed most • Allows the spouse to “control” proceeds • Easier to sell actual income instead of large face amounts • Flexibility in death benefit design can reduce premiums in competitive situations • Eliminates concern for investment expertise

  27. What Does Table D Mean? • Non-insulin dependent diabetic - treated by diet or medication • Hypertension - up to two medications are acceptable • Asthma - inhaled or oral medications • Arthritis - rheumatoid or joint disease under medication • Anxiety/Depression - mild, short-term, medications • Height/Weight - Male 6’0” - up to 317 pounds - Female 5’6” - up to 270 pounds .. . without an APS!

  28. Advantages of HomeCertain • You can have confidence in quoting rates • Higher placement ratio • No paramed on most sales • Dramatically quicker turnaround time from home office • Long term guarantees • Mortgages up to 13 months old • Ability to write up to 125% of mortgage

  29. Summary • Fidelity & Guaranty Life designed HomeCertain to aggressively compete in the mortgage market • HomeCertain continues to exemplify Fidelity & Guaranty Life’s commitment to niche market opportunities • HomeCertain has delivered in the past. It is the life sales opportunity for 2003 and beyond

  30. If you are selling Major Medical coverage, what would be on your wish list for a life product for these clients?

  31. Life Product Wish List For Health Agent • Competitive rates • Fully guaranteed rates • Up to 30-year term available • Competitive riders, more stories to tell • Simple application with no exam required • Quicker turnaround time What’s Fidelity & Guaranty Life’s answer??

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