Security for life
FACT SHEET Kansas cit y life insurance company
Life Protector Universal Life Although your clients have many goals and changing financial responsibilities, one of their life insurance needs may be guaranteed coverage for life to ensure future obligations can be met. With the guaranteed death benefit protection of the Life Protector Universal Life (UL), your clients will have the security of guaranteed coverage for life through the Lapse Protection Rider. The built-in Lapse Protection Rider ensures their coverage will not lapse even if the policy’s cash surrender value falls to zero. This means the policyholder can maintain coverage to age 120 solely through premium funding.
Benefits
Specs
Kansas City Life Insurance Company constantly strives to provide affordable, financially sound products to help ensure your clients can enjoy a long life with the security they are looking for, without worrying about the increasing costs of insurance.
■■ Length of death benefit guarantee varies based on premium funding. ■■ Lapse Protection Rider – automatically issued on all Life Protector Universal Life policies – allows the policy to remain in force to age 120 if the Lapse Protection Balance is positive after the initial Guaranteed Payment Period. ■■ Maximum issue age of 80. ■■ Minimum size of $50,000 for issue ages 50 and older. ■■ Set payment plan. ■■ Durational bonus (nonguaranteed). ■■ Preferred Elite Nontobacco risk classification is available. ■■ All the tax advantages of traditional life insurance. The following is a brief summary of the Life Protector product specifics. Please see the Product Guide on the Kansas City Life Illustration System for complete details and limitations. Issue ages 20-80 (age nearest birthday) Risk classifications Preferred Elite Nontobacco (PENT) Preferred Nontobacco (PNT) Standard Nontobacco (NT) Preferred Tobacco (PT) Standard Tobacco (ST)
Specs (cont.) Minimum issue limits Issue ages 20-49: $100,000 Issue ages 50-80: $50,000 Coverage options Option A Option B Guaranteed interest rate 3 % Guaranteed payment period 5 years The policy is guaranteed to remain in force for at least five years if the guaranteed payment premium is paid in a timely manner, regardless of cash value accumulation. Surrender charge period 7 years Banding $50,000, $100,000, $1,000,000 Expenses Percent of premium: 15 % Monthly expense charge: $4 Monthly per thousand charge: Current Years 1-5: Varies by issue age, gender and risk class Years 6+: $0 Guaranteed Years 1+: Varies by issue age, gender and risk class DEFRA Compliance Cash Value Accumulation Test (CVAT) 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 but must be designated as loan repayments and must be for at least $25. Loan interest rate 6 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 3 percent. 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. 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. *Borrowing against the policy can adversely affect the death benefit guarantees of Life Protector Universal Life. **A withdrawal will reduce the accumulated value and the death benefit of the policy and may adversely affect the death benefit guarantees of Life Protector Universal Life.
Available riders Life Protector Universal Life offers several optional riders which allow you to customize the policy to their individual 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) Pays an additional death benefit if the insured dies as the result of an accident. 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. Disability Payment of Premium (DPP) Pays a monthly premium (a predetermined amount) during the total disability of the insured. This rider continues funding when your client can’t and may help the policy accomplish your client’s intended purpose. If the cash surrender value plus the DPP benefit is inadequate to keep the coverage in force, Kansas City Life will waive the portion of the monthly deduction not covered. 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. Lapse Protection Rider (LPR) Automatically added to the Life Protector, the rider provides that the policy will remain in-force to age 120 if the policy has a positive cash surrender value or the lapse protection balance is not negative. The Lapse Protection feature is in effect only after the initial guaranteed payment period. Living Benefits Rider (LBR) Gives the policyowner access to the death benefit proceeds when the insured meets one of two trigger 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. There is no premium charge to add this rider. For states where the LBR is not approved, please use the Terminal Illness Rider; see details below. 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 to have a terminal illness with a life expectancy of 12 months or less. The maximum amount of accelerated benefits under all policies/riders for a single insured can never exceed $250,000.
For more information
There is no premium charge to add this rider. This rider is not available in states where the Living Benefits Rider has been approved.
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 is for the Life Protector Universal Life, a product of Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Policy form J178; rider forms R102, R207, R191, M652, R221, R181, R160. Form numbers may differ by state. Security Assured.
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3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com 2062
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