Agent Sales Guide
K a n s a s C i t y L i f e I n s u r a n c e C o m pa n y
For Agent Use Only — Not For Use With Clients
The time is right to offer clients the guarantees of whole life insurance Kansas City Life Insurance Company’s whole life portfolio addresses the conservative financial mood of today’s insurance-buying public. In many aspects of life, people are going back to the basics. They want security, safety and predictability. In other words, guarantees.
Current products in our whole life portfolio include:
Background
Sales advantages
Built on a solid foundation of guarantees, whole life insurance offers:
Product for savers
■
L-95 (traditional whole life) ■ Gift of Life (modified whole life)
Many consumers are concerned about the future. They haven’t saved for retirement. They are worried about the economy and the volatility of interest rates. The whole life products with Kansas City Life address volatility concerns by offering guaranteed premiums and guaranteed cash values.
■■ Guaranteed premiums for the life of the policy. Basic premiums will never be recalculated or increased on the L-95 policy. For the Gift of Life policy, the face amount and premium increase at age 25.
Market niche
■■ Guaranteed death benefit that never reduces as long as the policyowner pays the basic premium.
L-95 is perfect for the basic sale and easy for clients to understand.
■■ Guaranteed cash values that increase to endow the policy at maturity.crease to endow the policy at maturity With real household income levels dropping and consumers reluctant to increase or purchase new life insurance coverage, whole life may have an advantage when consumers are looking for fixed premiums and the assurance that cash values and death benefits are available when needed.
Ease of service There are no surprises with whole life insurance. As long as the policyowner pays the basic premium, the policy remains in force. Death benefits and policy values are there when needed.
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L-95 Traditional Whole Life the product Maturity
Kansas City Life’s L-95 is a nonparticipating traditional whole life policy with a premium paying period to age 95. Product features include guaranteed cash values, guaranteed level premiums and a guaranteed death benefit. For more detailed information, refer to the Product Guide on the Kansas City Life Illustration System.
Premiums are payable through age 95 and are guaranteed to endow the policy at maturity. L-95 endows and matures at the same age, 100. This means the cash value equals the face amount at the maturity age of 100. On the maturity date, the policy terminates and the face amount is paid to the owner of the policy. For tax purposes, this is considered a full surrender and taxes are due on the amount of any gain in the policy plus any unpaid loans.
Ease of issue Underwriting information is first obtained from the application. If necessary, additional information is provided by a telephone interview, an attending physician statement (APS) or from other sources.
Estate liquidity
Guaranteed values
The L-95 endowment-at-maturity feature can be important in estate liquidity situations if the insured’s family history suggests a likelihood of a long life. This is important because the cash value is guaranteed to equal the initial face amount on the maturity date (insured’s age 100). At that time, this amount minus any indebtedness is paid to the owner of the policy.
L-95 tax-deferred cash values are based on a guaranteed, nonforfeiture interest rate of 5 percent. These values, as well as the death benefit, are guaranteed at the time of issue and do not change. Outstanding policy loans, however, reduce the cash value and death benefit.
Guaranteed premiums Premiums are guaranteed to remain level for the life of the policy, so policyowners always know precisely what amount is due on the premium payment date. And, unlike some plans, L-95 lets an owner prepay as many annual premiums as he or she may choose. If a policyowner wants to eliminate premium payments at some point in the future, he or she can elect one of the following options: • a reduced paid-up policy or • an extended term policy.
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Gift of Life Modified Whole Life
the product
Kansas City Life’s Gift of Life is a nonparticipating, modified whole life policy available for issue ages 15 days to 18 years. Initial face amounts available are $15,000 or $30,000, with level annual premiums until the policy anniversary following the insured’s 25th birthday. At the insured’s age 25, the face amount automatically increases as does the annual premium. Product features include guaranteed cash values, premiums and death benefit. Refer to the Product Guide on the Kansas City Life Illustration System for complete details.
purchased at each of these ages, bringing the total coverage to $200,000, if every increase option is excercised. Premiums for the additional coverage increases are based on the insured’s age at the time of the increase. The following charts illustrate how the face amount grows with additional coverage increases.
Protecting children’s future
$100,000
insurability
$ 80,000
Gift of Life offers policyowners the ability to protect their children and grandchildren for an affordable premium.
$ 60,000 $ 40,000
Once a child reaches age 25, coverage automatically increases and the Assured Insurability and Waiver of Premium riders are added. (Addition of AI and WP riders is not automatic for policies issued in Maryland.) This increase in benefits occurs without requiring evidence of insurability, regardless of the insured’s health or occupation.
$ 20,000 $
0
Initial Coverage $15,000
Age
25 28 31 34 37 40
$200,000
Gift of Life
$180,000
Coverage and Premium Amounts Initial Face Amount
Initial Annual Premium
Age 25 Face Amount
Age 25 Annual Premium
$15,000
$60.00
$25,000
$225.00
$30,000
$90.00
$50,000
$450.00
$160,000 $140,000 $120,000
Additional coverage increases –
$100,000
The Assured Insurability rider offers the option to purchase additional coverage at ages 28, 31, 34, 37 and 40 – all without requiring evidence of insurability.
$ 80,000 $ 60,000 $ 40,000
If the initial face amount of the policy was $15,000, an additional $15,000 of coverage may be purchased at each of these ages, bringing the total coverage to $100,000, if every increase option is excercised. If the initial face amount of the policy was $30,000, an additional $30,000 of coverage may be
$ 20,000
$
0
Initial Coverage $30,000
Age
3
25 28 31 34 37 40
Whole Life Specifications
Risk Class Issue Ages
L-95
Gift of Life
Non-Tobacco Tobacco
Standard
0-80
(age last birthday)
0-18
(age last birthday)
Minimum Issue
$5,000
$15,000 or $30,000
Premium Bands
B5 B25 B50
N/A
Policy Fee
$30
$0
Loan Interest Rate
8%
8%
Guaranteed Cash Value
Yes
Yes
Policy Maturity Date
Age 100
Age 100
Riders / Benefits Refer to Page 5 for rider names and benefit explanations.
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ADB AI CTI IAO PWP STI WP
Application
A160
1 In the state of Washington, a minimum issue amount of $25,000 is required for: NON-TOBACCO: Male – over age 67 / Female – over age 69 TOBACCO: Male – over age 59 / Female – over age 66
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AI IAO WP Automatic Benefits • $15,000 face amounts increase to $25,000 at age 25 • $30,000 face amounts increase to $50,000 at age 25
A153
Whole Life Riders Spouse’s Term Insurance (STI) Provides decreasing term life insurance on the insured’s spouse.
Not all riders shown here are available once the policy is issued, and rider availability may vary by state. For availability and complete details, refer to the Product Guide on the Kansas City Life Illustration System.
Waiver of Premium (WP) Waives any premiums falling due during a period of total disability of the insured. For premiums to be waived, the insured’s disability must have occurred while the rider is in force, existed for six consecutive months and occurred before the policy anniversary on which he or she is age 60.
Accidental Death Benefit (ADB) Pays an additional death benefit if the insured dies as the result of an accident. Assured Insurability (Option to Increase Specified Amount) (AI) Allows the insured to increase the face amount, by the option amount or less, at regularly specified option dates, regardless of health. There also may be other option dates if certain events occur.
*This rider is automatically added to Gift of Life policies at the insured’s age 25.
*This rider is automatically added to Gift of Life policies at the insured’s age 25. Children’s Term Insurance (CTI) Provides level term life insurance (maximum $25,000) on each of the insured’s children ages 14 days to 17 years. Coverage ceases the earlier of when the child reaches age 25 or the insured reaches age 65. CTI offers liberal conversion privileges. Income Assured Option (IAO) 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. Payments of the Installment Benefit Amount begin one modal period after the Lump Sum Benefit is paid and are paid according to the mode elected. Purchaser Waiver of Premium (PWP) Subject to the conditions set forth in the rider, waives payment of premiums falling due: (1) During the total disability of the purchaser; or (2) After the death of the purchaser, prior to the policy anniversary when the insured’s age is 25.
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Security Assured.
TM
3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com
Note: The coverage described in this guide is for the Whole Life Insurance portfolio of Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Policy forms J162 or J167; rider forms R102, R207, M652, R210, R100, R110, R111, R196, R197. Form numbers may differ by state. Coverage may not be available in all states.
6751
5.12S