Plan today f o r t o m o r r o w ’s expenses
FACT SHEET Kansas cit y life insurance company
Enhanced Living Benefits Rider
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 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.
According to April 2011 releases from the U.S. Department of Health and Human Services and the National Clearinghouse for Long-Term Care Information, at least 70 percent of people over age 65 will require some long-term care services at some point in their lives. And, contrary to what many people believe, Medicare and private health insurance programs do not pay for the majority of long-term care services.
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 To us, integrity is not an outdated notion in today’s fast-paced world.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.
Benefits
No one can predict the future, but an illness or injury can result in unplanned long-term care expenses that can significantly erode one’s assets. The Enhanced Living Benefits (ELB) rider can help provide protection from these unexpected expenses by prepaying a portion of the death benefit when a qualifying condition triggers benefit payments. The ELB rider may allow for prepayment of a portion of the death benefit if the insured needs assistance with at least two activities of daily living or if he or she is confined to a nursing home. Unlike other types of insurance, however, the proceeds paid from the ELB rider have no restrictions or limits on how they are used. ■ The ELB rider is not a long-term care, nursing home or health insurance policy. ■ It does not pay a specific amount for specific services. The proceeds can pay for home health care as long as it qualifies as receiving care under the contract.
Security Assured.
■ Payments are based entirely on confinement or chronic condition and not on expenses incurred.
TM
■ Benefits paid monthly (alternate lump sum benefit available). ■ Benefits may be taxable.
Specs
3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com
The following is a brief summary of the rider specifics. Please see the Product Guide in the Kansas City Life Illustration System for complete details and limitations. Issue ages: 20-70
The coverage described is for the Enhanced Living Benefits rider from Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Rider form R203, R204, R223 or R224. Form number may differ by state. Coverage may not be available in all states. For agent use only. Not for use with clients. 2001
■ Receipt of benefits, or even the fact that a policy with this type of rider is owned, may affect Medicaid and Supplemental Security Income (SSI) eligibility.
5.12m
Payment triggers (may vary by state): Benefits payable if the insured qualifies under either, or both, of the following triggers: (1) Confinement: Insured must reside in and receive care from an eligible nursing home. Some states require confinement be expected for the lifetime of the insured.
Specs (Cont.) (2) Chronic condition (This may not be a trigger in all states.): • Insured has been certified by a licensed physician as being permanently unable to perform, without substantial assistance, at least two of the following six activities of daily living: bathing, continence, dressing, eating, toileting, transferring; OR • Substantial supervision is required to protect the insured due to a permanent severe cognitive impairment.
Effect on other riders: • The Living Benefits Rider is not available on a policy with the ELB rider. • The Terminal Illness Rider is available with the ELB rider. • Disability Payment of Premium and Disability Continuance of Insurance riders are available on a policy with the ELB rider. • The ELB benefit base increases proportionally when any increase is made to the base policy’s specified amount from either the Assured Insurability or Cost of Living rider. The maximum benefit base rules still apply.
Insured must be receiving health care assistance, as defined in the contract, at least two times per week. Payments may be made under both triggers concurrently if the insured qualifies under both. (May vary by state.)
Changes in specified amount: • The ELB benefit base does not increase when the specified amount is increased unless specifically requested and underwritten. • Likewise, the ELB benefit base does not automatically decrease when the specified amount is decreased unless it is required to prevent the benefit base from exceeding the maximum ELB benefit base given the new specified amount.
Elimination period (may vary by state): Both triggers require the condition be met for 90 continuous days. Benefit base: Selected at issue and used in calculation of benefits: Minimum benefit base: $10,000 Maximum benefit base: 90 percent of the specified amount, but not more than $500,000*
Required forms: Two forms are required when applying for the ELB rider: • Enhanced Living Benefit Rider Supplement (A165) • How the Enhanced Living Benefits Rider Works (M686 for variable products and M687 for fixed products)
Benefit payment frequency: Payments may be made under either the monthly benefit payment option or the lump sum benefit payment option. Once a payment option has been exercised, the other option is no longer available under that trigger.
Underwriting: • The rider itself is not issued with a substandard rating. • Any applicant rated above Table D is not eligible for the ELB rider. • Different payment percentages for each trigger may be used to adjust for underwriting risks.
Benefit amount payable (may vary by state):
Option and trigger benefit
Benefit (as a percentage of benefit base)
Monthly chronic condition
1%
Monthly confinement
1%
Lump sum chronic condition
10%
Lump sum confinement
10%
Commissions: • The ELB rider is fully commissionable.
Product availability
The ELB rider is available for new issues and for addition to an existing policy on the following base plans: • FlexWealth Advantage • NOVA, NOVA II, SuperNOVA • Century II VUL, Alliance VUL, Accumulator VUL* • Executive II, Performer II, Competitor II • Master Plan II, Pathway II • Executive, Performer, Competitor (1988 and 1991) • Classic • BLP • LifeTrack • Growth Plan series
Important note: The maximum accelerated death benefit payable from this rider is the least of the benefit base, 90 percent of the specified amount and $500,000*. The maximum accelerated death benefits payable under all policies or riders on a single insured can never exceed $500,000* regardless of the number or sizes of the policies or riders in force. Minimum benefit amount payable (chronic or confinement): $50 monthly or $500 lump sum Effect on the policy: • A permanent lien is placed on the policy when benefits are paid. • The policy values are adjusted. • Death benefit Option B or C will be changed to Option A when benefits become payable. • If there is an outstanding policy loan when benefits become payable, a portion of the benefit payment is used to repay the loan.
The addition of the ELB rider to an existing policy must accompany an increase in specified amount of at least $25,000. Please note the ELB rider requires underwriting in all cases.
For more information
*Securities offered through Sunset Financial Services, Inc., 3520 Broadway, Kansas City, MO 64111, 816-753-7000 (Home Office) Member FINRA/SIPC.
*This is subject to state availability. The maximum in some states is $350,000. 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.
Specs (Cont.) (2) Chronic condition (This may not be a trigger in all states.): • Insured has been certified by a licensed physician as being permanently unable to perform, without substantial assistance, at least two of the following six activities of daily living: bathing, continence, dressing, eating, toileting, transferring; OR • Substantial supervision is required to protect the insured due to a permanent severe cognitive impairment.
Effect on other riders: • The Living Benefits Rider is not available on a policy with the ELB rider. • The Terminal Illness Rider is available with the ELB rider. • Disability Payment of Premium and Disability Continuance of Insurance riders are available on a policy with the ELB rider. • The ELB benefit base increases proportionally when any increase is made to the base policy’s specified amount from either the Assured Insurability or Cost of Living rider. The maximum benefit base rules still apply.
Insured must be receiving health care assistance, as defined in the contract, at least two times per week. Payments may be made under both triggers concurrently if the insured qualifies under both. (May vary by state.)
Changes in specified amount: • The ELB benefit base does not increase when the specified amount is increased unless specifically requested and underwritten. • Likewise, the ELB benefit base does not automatically decrease when the specified amount is decreased unless it is required to prevent the benefit base from exceeding the maximum ELB benefit base given the new specified amount.
Elimination period (may vary by state): Both triggers require the condition be met for 90 continuous days. Benefit base: Selected at issue and used in calculation of benefits: Minimum benefit base: $10,000 Maximum benefit base: 90 percent of the specified amount, but not more than $500,000*
Required forms: Two forms are required when applying for the ELB rider: • Enhanced Living Benefit Rider Supplement (A165) • How the Enhanced Living Benefits Rider Works (M686 for variable products and M687 for fixed products)
Benefit payment frequency: Payments may be made under either the monthly benefit payment option or the lump sum benefit payment option. Once a payment option has been exercised, the other option is no longer available under that trigger.
Underwriting: • The rider itself is not issued with a substandard rating. • Any applicant rated above Table D is not eligible for the ELB rider. • Different payment percentages for each trigger may be used to adjust for underwriting risks.
Benefit amount payable (may vary by state):
Option and trigger benefit
Benefit (as a percentage of benefit base)
Monthly chronic condition
1%
Monthly confinement
1%
Lump sum chronic condition
10%
Lump sum confinement
10%
Commissions: • The ELB rider is fully commissionable.
Product availability
The ELB rider is available for new issues and for addition to an existing policy on the following base plans: • FlexWealth Advantage • NOVA, NOVA II, SuperNOVA • Century II VUL, Alliance VUL, Accumulator VUL* • Executive II, Performer II, Competitor II • Master Plan II, Pathway II • Executive, Performer, Competitor (1988 and 1991) • Classic • BLP • LifeTrack • Growth Plan series
Important note: The maximum accelerated death benefit payable from this rider is the least of the benefit base, 90 percent of the specified amount and $500,000*. The maximum accelerated death benefits payable under all policies or riders on a single insured can never exceed $500,000* regardless of the number or sizes of the policies or riders in force. Minimum benefit amount payable (chronic or confinement): $50 monthly or $500 lump sum Effect on the policy: • A permanent lien is placed on the policy when benefits are paid. • The policy values are adjusted. • Death benefit Option B or C will be changed to Option A when benefits become payable. • If there is an outstanding policy loan when benefits become payable, a portion of the benefit payment is used to repay the loan.
The addition of the ELB rider to an existing policy must accompany an increase in specified amount of at least $25,000. Please note the ELB rider requires underwriting in all cases.
For more information
*Securities offered through Sunset Financial Services, Inc., 3520 Broadway, Kansas City, MO 64111, 816-753-7000 (Home Office) Member FINRA/SIPC.
*This is subject to state availability. The maximum in some states is $350,000. 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.
Plan today f o r t o m o r r o w ’s expenses
FACT SHEET Kansas cit y life insurance company
Enhanced Living Benefits Rider
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 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.
According to April 2011 releases from the U.S. Department of Health and Human Services and the National Clearinghouse for Long-Term Care Information, at least 70 percent of people over age 65 will require some long-term care services at some point in their lives. And, contrary to what many people believe, Medicare and private health insurance programs do not pay for the majority of long-term care services.
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.
Benefits
No one can predict the future, but an illness or injury can result in unplanned long-term care expenses that can significantly erode one’s assets. The Enhanced Living Benefits (ELB) rider can help provide protection from these unexpected expenses by prepaying a portion of the death benefit when a qualifying condition triggers benefit payments. The ELB rider may allow for prepayment of a portion of the death benefit if the insured needs assistance with at least two activities of daily living or if he or she is confined to a nursing home. Unlike other types of insurance, however, the proceeds paid from the ELB rider have no restrictions or limits on how they are used. ■ The ELB rider is not a long-term care, nursing home or health insurance policy. ■ It does not pay a specific amount for specific services. The proceeds can pay for home health care as long as it qualifies as receiving care under the contract.
Security Assured.
■ Payments are based entirely on confinement or chronic condition and not on expenses incurred.
TM
■ Benefits paid monthly (alternate lump sum benefit available). ■ Benefits may be taxable.
Specs
3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com
The following is a brief summary of the rider specifics. Please see the Product Guide in the Kansas City Life Illustration System for complete details and limitations. Issue ages: 20-70
The coverage described is for the Enhanced Living Benefits rider from Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Rider form R203, R204, R223 or R224. Form number may differ by state. Coverage may not be available in all states. For agent use only. Not for use with clients. 2001
■ Receipt of benefits, or even the fact that a policy with this type of rider is owned, may affect Medicaid and Supplemental Security Income (SSI) eligibility.
5.12m
Payment triggers (may vary by state): Benefits payable if the insured qualifies under either, or both, of the following triggers: (1) Confinement: Insured must reside in and receive care from an eligible nursing home. Some states require confinement be expected for the lifetime of the insured.