FACT SHEET Kansas cit y life insurance company
ChoiceTerm 20SM ChoiceTerm 20 is a non-participating plan which provides a level death benefit to age 95 and level premiums during the initial term period of 20 years. The policy is annually renewable after the initial term period at ultimate rates based on the attained age of the insured. All coverage ceases on the policy anniversary on which the insured is age 95. Benefits ■■ ChoiceTerm 20 is one of the most straightforward, inexpensive ways to financially protect a family today with the flexibility to convert to permanent protection in the future. ■■ ChoiceTerm 20 is great for business clients and provides an affordable guaranteed solution. ■■ ChoiceTerm 20 allows you to market to more affluent individuals. ■■ The death benefits are level and guaranteed and do not change for the life of the policy. ■■ Conversion privileges and requalification options are available. ■■ Policy riders and features allow you to customize for client’s specific needs.
Specs The following is a brief summary of the ChoiceTerm 20 product specifics. Please see the Product Guide on the Kansas City Life Illustration System for complete details and limitations. Issue ages: 20-65 (age near birthday) (20-60 in Washington) Risk classifications: Preferred Elite Nontobacco (PENT) Preferred Nontobacco (PNT) Standard Select Nontobacco (SSNT) Standard Nontobacco (SNT) Preferred Tobacco (PT) Standard Tobacco (ST) Minimum issue limit: $1,000,000 Policy fee: $100 (non-commissionable)
Specs (cont.) Premium Modes: Kansas City Life offers several convenient ways to pay premiums: Annually, semi-annually, quarterly or monthly billing. Requalification: Insured may requalify after the 10th policy anniversary but before age 65 (age 60 in Washington) subject to certain requirements. Rates for the new policy are based on the age nearest birthday of the insured at the time of requalification. Requires evidence of insurability. Conversion: This policy may be converted to any permanent life plan designated eligible for conversion by Kansas City Life Insurance Company without evidence of insurability provided that the amount does not exceed the death benefit of the term policy payable at the time of conversion and the minimum or guaranteed premium of the permanent policy is higher than the current term policy premium. The final conversion date is the earlier of the policy anniversary nearest the insured’s 65th birthday or the 10th policy anniversary. No conversion credit is available. If the term policy was issued as SSNT, the policy is converted to SNT on the permanent plan. If the policy contains the Waiver of Premium (WP) or Accidental Death Benefit (ADB) riders, the new permanent policy may be issued with either benefit without evidence of insurability, if requested. If the new policy is a universal life policy, the WP rider may be converted to the Disability Continuance of Insurance rider but not the Disability Payment of Premium rider unless additional information is provided.
Available riders ChoiceTerm 20 offers a variety of riders which allow you to customize the policy to each individual client’s needs. A brief description of each rider follows. Riders may not be available in all states. Please see the Product Guide in the Kansas City Life Illustration System for complete details and rider limitations. Accidental Death Benefit (ADB) This rider provides for the payment of an additional death benefit in the event of accidental death. The benefit terminates on the policy anniversary on which the insured’s age is 70. Children’s Term Insurance (CTI) This rider provides level term insurance on each insured child. For each $5,000 of initial face amount of the base policy, one unit equal to $1,000 of coverage may be purchased for each insured child, up to a maximum of $25,000. The rider terminates on the policy anniversary on which the primary insured is age 65, if living, otherwise the policy anniversary on which the insured’s age would have been 65. The term insurance on each insured child continues until the earlier of the policy anniversary on which the insured child is age 25 or the expiration date of the rider.
Income Assured Option (IAO) This enhancement allows the owner to choose how the death benefit is paid out. At the time the endorsement is added, the owner designates a Lump Sum Benefit that is immediately paid out at proof of death. The owner also designates an Installment Benefit Amount paid for a designated number of installment benefit years after proof of death. Installment Benefit Amount payments begin one modal period after the Lump Sum Benefit is paid and are paid according to the mode selected. The face amount of the policy at the time the endorsement is added is the sum of the Lump Sum Benefit and the present value of the Installment Benefit. Spouse’s Term Insurance (STI) This rider provides decreasing term insurance on the insured’s spouse. The rider expires on the first policy anniversary on which the insured spouse’s age is 65. The rider is not available if the insured is rated higher than a Table B or is over age 65. Terminal Illness Rider (TIR) An accelerated death benefit payment amount is paid if the insured is diagnosed as having a terminal illness while this rider is in force. A terminal illness is defined as any non-correctable medical condition, which, in the physician’s best medical judgment, will result in the insured’s death within 12 months from the date of the physician’s certification. The TIR election amount, chosen by the policy owner at the time the claim is made, will be paid less a $200 processing fee. This charge is currently being waived; however, we reserve the right to assess the charge in the future. The TIR can be added to a policy at issue or any time after issue. The TIR terminates two years before the policy’s expiration date.
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Waiver of Premium (WP) With this rider, premium payments are waived during a period of total disability of the primary insured. The rider terminates on the policy anniversary on which the primary insured is age 60. Premiums are waived if the disability has existed for six consecutive months, the disability occurred before the insured’s age 60 and the disability occurred prior to the expiration date of the base policy.
Kansas City Life Insurance Company, 800-572-2467; Scott Allard, sallard@kclife.com, ext. 8515; Dwane Turnage, dturnage@kclife.com, ext. 8145; Misty Wilcox, mwilcox@kclife.com, ext. 8228; Steve Zadeh, szadeh@kclife.com, ext. 8167.
A company you can count on
A promise of financial security is only as good as the company that makes it. When Kansas City Life Insurance Company makes a promise, we stand behind it. Since 1895, we have assisted policyholders through world wars, the Great Depression and various periods of recession and inflation. Kansas City Life’s reputation is built on integrity, sound investment strategies and honest business practices. To us, integrity is not an outdated notion in today’s fast-paced world. It is the guiding force behind every decision we make. Every product we sell is backed by more than a century of quality service and financial security.
The coverage described in this fact sheet is for the ChoiceTerm 20, a product of Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Policy form J160, rider forms R102, R207, M652, R210, R195, R100. Form numbers may differ by state.
3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com 2814
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