CRITICAL ILLNESS CHRONIC ILLNESS TERMINAL ILLNESS Life Insurance Policy Riders cover these “Qualifying Events.” These benefits add a strategically important dynamic to the Ownership of Life Insurance, in terms of: Need Importance Urgency

FLEXIBILITY !! Money when you need it! ABR’s allow the policyowner the option to accelerate a portion of the life insurance benefit, Before Death, for cash, when needed, by the family….

CASH ACCESS!! When Needed Most! For Any Purpose: Health insurance deductibles, co-pays, transportation, commutation, life insurance premiums, child care! Releases financial stress! Helps avoid unwise, high-pressure, financial choices and decisions!

LOW COST or NO COST!! Most Are Included in policy premium (“Endorsements”)! ABR accelerated cash is less than the reduction of the Death Benefit. An ABR is not a pure substitute for health or disability insurance. For example, the Chronic Illness ABR is not a full substitute for Long Term Care. It will not provide the more comprehensive details of a long term care policy. The primary purpose of the policy is the Death Benefit, but the availability of the ABR’s make the life policy a much more versatile and valuable “safety net!”

POLICY LOANS and WITHDRAWALS May be preferable to choosing to use an ABR, with an established UL---when there is sufficient cash value. A new UL, or term policy, will not have adequate cash value for a meaningful cash distribution.

ADDED FLEXIBILITY and CASH ACCESS Life has a strange way of creating unexpected situations, which can cause severe problems…. ABR’s could be the answer to solving these unpleasant surprises!

TODAY’S OBJECTIVE: You should compare and contrast ABR performance, cost, and values of these top-level life companies: American General Life and Accident (AGLA) North American Company Transamerica Life Mutual of Omaha American General Protective Life American National Prudential Lincoln National (LFG)

THESE BENEFITS ARE NOT COMMONPLACE! Today’s session content provides you with an advantage---if you have the knowledge, choose the right companies, and if you have the ability to determine the best choice of ABR’s for your prospects’ needs, concerns, and circumstances!

AMERICAN GENERAL Life & ACCIDENT (AGLA) Possibly the best option, specifically for the ABR’s which are “endorsements.” Generally, less reduction of death benefit for ABR disbursements, when compared to other companies. Remember, however, to compare the base policy, within which the ABR’s are imbedded, in a comprehensive comparison of the best value for the prospect. ABR’s available on term & UL policies.

NORTH AMERICAN COMPANY ABR endorsements are available on specific UL policies only: Custom Guarantee, the Builder IUL, and the Guarantee Builder IUL. For the Critical Illness ABR, 40% of the death benefit reduction, up to $50,000 per claim (one claim per a 6- month period) is available, with no “underwriting” at time of claim (meaning $20,000 max benefit per claim).

TRANSAMERICA LIFE ABR’s are available only on the Trendsetter Term LB policy series. There is approximately a 5% to 10% increase in premium, when compared to the Trendsetter Super Term series (without ABR’s), but the ABR’s are endorsements (“built-in”). (Remember that Transamerica’s TransAce UL has a Long Term Care Rider…a TRUE LTC Rider!)

MUTUAL OF OMAHA Only Chronic Illness and Terminal Illness ABR’s are available, but they are available on both their term and UL policies. The ABR’s are endorsements, with no extra premium. There are no outstanding details.

AMERICAN GENERAL LIFE AG offers an optional ABR (not an endorsement) for Chronic Illness: The Accelerated Access Solution. The significance of this optional rider is important: The reduction of the death benefit is equal to the benefit paid….dollar-for dollar. There is an added premium for this optional benefit, an approximate 10% to 20% increase. The insured has choices regarding the amount of the monthly benefit: 2% or 4% of the death benefit, or the IRS maximum per diem cap (currently $330 per day, or $9900 per month).

PROTECTIVE LIFE Similar to AG, Protective offers the optional ExtendCare ABR. It is also a dollar-for-dollar reduction of death benefit, equal to the distribution. The maximum monthly benefit is $9600 per month ($320 per day). A premium increase of approximately 10% is required for this rider. Like AG, this rider provides benefits on an indemnity basis, not reimbursement.

AMERICAN NATIONAL LIFE Chronic Illness, Critical Illness, and Terminal Illness ABR’s are provided on term, Whole Life, and UL policies. The ABR rider may be included for term riders on any policy, including term riders on the primary insured, the spouse, and other insureds. Please note that the policy will terminate if an ABR benefit is paid on the base policy. That’s because any claim paid is for the maximum accelerated benefit, and reduces the death benefit to zero. An ABR benefit paid on a term rider is also for the maximum benefit, and cancels that specific rider.

PRUDENTIAL Pru offers optional ABR’s, a Terminal Illness Rider and a Chronic Illness Rider. The “BenefitAccess” Rider (BAR) is the Chronic Illness Rider. The benefits paid under this rider reduce the death benefit on a dollar- for-dollar basis. The BAR is available only on Pru’s UL Protector policy. The additional premium for these ABR’s ranges from approximately 5% to 20% of the base premium. The maximum monthly benefit is $9600.

LINCOLN NATIONAL LIFE (LFG) ABR availability is only with 2 UL policies: The Life Guarantee 2013 UL, and the IUL Accumulator. However, both the endorsement ABR’s (Terminal, Chronic, and Critical) and the optional ABR’s (Terminal and Chronic only) are available. The optional ABR’s require an additional premium. All ABR’s are paid on an indemnity basis. The “LifeEnhance ABR” (LEABR) is the optional Chronic Illness ABR. The maximum benefit is 2% of the death benefit, or $330 daily (the IRS daily per diem maximum). A maximum lump sum benefit may be paid, upon request, and will terminate the policy. The amount would be determined at the time of claim and request for the lump sum amount.

SUMMARY OVERWHELMING!!! None of us can be expected to retain all the details of how each of these 9 companies handle their ABR’s. When considering the company, the policy, and the design, we must look at policies on a comprehensive basis…Not just the ABR’s: How competitively is the policy priced? What type of policy? Are other riders important? What are the needs, goals, and desires of the prospect? All this must come together for the agent to be able to recommend the most suitable solution in each unique sales opportunity. Please do not hesitate to call BENCHMARK for our recommendations and guidance. We’re here to help!! Enjoy the wealth of information and opportunities which will be made available to you today and tomorrow… We appreciate your business! THANK YOU!