FACT SHEET Kansas cit y life insurance company
FlexWealth Advantage
SM
Benefits
FlexWealth Advantage, a Kansas City Life Insurance Company universal life (UL) product, offers excellent long term cash values at an affordable price. Designed to help your clients accumulate money in a tax-efficient UL policy while increasing maximum funding allowed by Internal Revenue Service. Clients can also access the accumulated value for anything they would normally borrow from a bank so they pay themselves back with interest! For clients: ■ Can overfund policy and gain tax-free access to those funds through FlexCash feature. ■ Preferred loan provision is guaranteed with a low 1-percent net cost and can begin in third year. ■ The total cash surrender value, including premiums paid, is available through preferred loans. For you: ■ High issue age limits. Low specified amount minimums. ■ Attractive commission rates. ■ In-force illustration capability demonstrates the FlexCash feature.
Specs The following is a brief summary of the FlexWealth Advantage product specifics. Please see the Product Guide on the Kansas City Life Illustration System for complete details and limitations. Issue ages 0-85 (age near birthday) Preferred risk classes not available at issue ages above 80. Risk classifications Preferred Elite Nontobacco (PENT) Preferred Nontobacco (PNT) Standard Nontobacco (NT) Preferred Tobacco (PT) Standard Tobacco (ST) Minimum issue limits PNT issue ages 0-14 NT, ST issue ages 15-49 50-85 PENT/PNT/PT issue ages 15-49 50-80
$25,000 $25,000 $10,000 $100,000 $50,000
Specs (cont.) Guaranteed interest rate
3%
Coverage options
Option A and B
DEFRA testing For issue ages 0-14 For issue ages 15-85
CVAT CVAT or GPT elected at issue
Guaranteed payment period
10 years (does not restart for increases in specified amount)
Surrender charge period
15 years
Premium banding
B10, B100
Expenses Monthly Expense Charge Percent of Premium Monthly Per Thousand Charge Current B10 B50 B100 B250 B500 Guaranteed All bands
$5 6% $0.06 all years $0.06 years 1-10 $0.00 years 11+ $0.03 years 1-10 $0.00 years 11+ $0.01 years 1-10 $0.00 years 11+ $0.00 all years $0.06 all years
Premium modes Kansas City Life offers several convenient ways to pay premiums: Annually, semi-annually, quarterly or monthly billing. Loans To help your client meet emergency needs, he or she can tap into the policy’s cash surrender value through policy loans. The maximum loan amount available is equal to the cash surrender value of the policy less any loan interest to the next policy anniversary. Loan repayments may be made at any time. Loan interest rate 5 percent is charged on an outstanding loan. However, the portion of the accumulated value securing the loan is credited with 3-percent interest, making the net loan cost 2 percent. Preferred loan provision Beginning in the third policy year, loans may be taken on a preferred basis, meaning there is only a 1-percent net cost. Preferred loans are charged 5-percent interest, but Kansas City Life credits 4 percent back to the accumulated value on those borrowed funds. This preferred loan provision is guaranteed. Withdrawals There may be times when your client wants to take out some of the policy’s cash surrender value without having to pay it back. A withdrawal must be less than the cash surrender value and currently incurs no charge if more than $5,000. Depending on the coverage option, a withdrawal may affect the specified amount and the death benefit of the policy: Option A The specified amount and the accumulated value will be reduced by the amount of the withdrawal plus the $25 withdrawal charge. Option B
The accumulated value and the death benefit will be reduced by the amount of the withdrawal and a $25 withdrawal charge.
Available riders FlexWealth Advantage offers a wide 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 on the Kansas City Life Illustration System for complete details and rider limitations. Accidental Death Benefit (ADB) Pays an additional death benefit if the insured dies as the result of an accident. Assured Insurability (AI) Allows the insured to increase the specified amount, by the option amount or less, at regularly specified option dates, regardless of future health. There may be other option dates if certain events occur. Available for ages 0-38. Automatic Growth Rider (AGR) Every third policy anniversary after issue, this rider automatically increases the specified amount by an amount equal to 10 percent of the specified amount at issue. Rider terminates when total increase reaches the $100,000 maximum, when the policy owner rejects any scheduled increase or if the policy is decreased. Children’s Term Insurance (CTI) Provides level term insurance on each of the insured’s children ages 14 days to 17 years. For each $5,000 of initial specified 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 units or $25,000. Coverage ceases when the child reaches age 25. CTI offers liberal conversion privileges. Cost of Living (COL) Provides an automatic increase in the specified amount, without evidence of insurability, based on increases in the U.S. Consumer Price Index. Disability Continuance of Insurance (DCOI) Continues the coverage while the insured is totally disabled by waiving the monthly cost of insurance and expense charges. Disability Payment of Premium (DPP) Pays a monthly premium (a pre-determined amount set at issue) during the total disability of the insured. This rider continues funding when the client can’t so it can accomplish the client’s intended purposes. If the cash surrender value plus the DPP benefit is inadequate to keep coverage in force, an additional premium amount will be paid to the policy (much like a DCOI benefit) to ensure it does not lapse. Enhanced Living Benefits (ELB) 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 have no restrictions or limits on how they are used. Extra Protection (EXP) Provides level yearly renewable term insurance on the primary insured only. Preferred rates are available. Maximum is two times base policy amount. 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. Living Benefits Rider (LBR) Gives policyowner access to death benefit proceeds when the insured meets one of two triggering events: (1) terminal illness with a life expectancy of 12 months or less; or (2) eligible nursing home confinement of at least six months that is expected to last until death. No more than $250,000 of the policy’s proceeds may be designated for prepayment.
Available riders Monthly Benefit Rider (MBR) Designed to replace a family’s lost income due to the death of the primary insured, this rider provides a monthly income benefit payable for a period of time selected at policy issue. If elected, it automatically increases 3 percent each year during the insured’s lifetime. Multiple MBRs, with different beneficiaries, can be added to a single policy as long as the total benefit does not exceed specified limits. Other Insured Rider (OI) Provides level yearly renewable term coverage on the person insured by the rider. Only the primary insured, the spouse, children and/or business associates of the primary insured may be covered by this rider. Preferred rates available. Maximum is two times the base policy specified amount for the primary insured and the maximum for any person other than the primary insured is the specified amount of the base policy. Spouse’s Term Insurance (STI) Provides decreasing term insurance on the insured’s spouse. Terminal Illness Rider (TIR) Provides an accelerated death benefit of up to 50 percent of the policy’s specified amount. The TIR benefit is paid to the policyowner if the insured is diagnosed by a physician as having a terminal illness with a life expectancy of 12 months or less. There is no premium charge to add this rider. The maximum amount of accelerated benefits under all policies/riders for a single insured can never exceed $250,000.
For more information 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.
The coverage described is for the FlexWealth Advantage Universal Life, a product of Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Policy form J173 or J174; rider forms R102, R123, R211, R121, R207, R208, R191, R204/R224, R175, M652, R181, R209, R213, R210, R160. Form numbers may differ by state.
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3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com For agent use only. Not for use with clients. 2048
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