1. Saver’s Select TermSM

2. Have Life Insurers gone too far?
“Falling Prices, Falling Sales”
Best’s Review - November 01, by David F. Woods
As prices have fallen…sales, not demand, have fallen
Annual policy sales have declined eight straight years
People who plan to buy out number 3:1 actual sales
21% of people earning more than $75K say they need more life insurance
54% of people between $35K & $75K need more life insurance
31 million people say they plan to buy in next 12 months

3. Have Life Insurers gone too far?
“Falling Prices, Falling Sales”
Best’s Review - November 01, by David F. Woods
11 million policies were sold vs. identified 31 million who want to buy
Conclusion:
In the life insurance industry where prices are falling, demand exceeds sales and supply is unlimited, the failure has to be in distribution.
Why?

4. Have Life Insurers gone too far?
“Falling Prices, Falling Sales”
Best’s Review - November 01, by David F. Woods
FACTORS:
Tremendous reduction in premium rates combined with fewer policies sold. Agent is making 50%of what they made 10 years ago for the same case.
40% of agent’s income is from insurance sales compared with 60% 10 years ago.
Agents steering away from more difficult life insurance sale with such a financial disincentive.

5. Have Life Insurers gone too far?
“Falling Prices, Falling Sales”
Best’s Review - November 01, by David F. Woods
RESULT:
We have 60 million who say they need more life insurance -31 million who want to buy within next 12 months - will life insurance agents be willing to fulfill this economic demand if carriers continue to decrease rates and commissions?

6. Have Life Insurers gone too far?
The answer is:
SAVER’S SELECT TERM
&
RETURN OF PREMIUM

7. “At last - a term life insurance product worth selling ”
Saver’s Select Product Positioning
“At last - a term life insurance product worth selling ”
Agents
Saver’s Select allows the agent to earn better than average income with the addition of unique customer focused rider benefits.
Saver’s Select liberal preferred underwriting allows the agent to place more cases without the need to resell the policy on delivery.
Consumers
Saver’s Select term provides easy to obtain coverage with unique benefits for families and small business owners.
Saver’s Select term provides benefits when your client needs them and return of premium if they don’t.

8. Saver’s Select Term Competitive rates
Return of Premium and Disability Income Riders
High 1st year commissions
Renewal commissions- up to 10 years
Short form application
Age last birthday
Liberal preferred underwriting
Excellent smoker rates
No blood through $500k Age 40 and $250k age 50
Commissionable policy fee

9. Saver’s Select Policy Design
15, 20, or 30-year term
$150,000 minimum face amount
Rates guaranteed for 10 years or full term period by use of Rider
Liberal preferred underwriting allows for more cases to placed as submitted
Convertible on or before tenth policy anniversary to UL
Issue ages (age last birthday)
10 year term period
guarantee guarantee
15-year plan
20-year plan
30-year plan

10. Saver’s Select Policy Design cont.
$60 policy fee, fully commissionable, no additional policy fee for up to three insureds
Five Premium Bands
$150,000 - $249,999
$250,000 - $499,999
$500,000 - $999,999
$1,000,000 - $2,999,999
$3,000,000 and up
Tremendous selection of riders
Money back return of premium rider
Other insured rider (up to 3 per policy with only one policy fee)
Disability protection rider
Waiver of Premium
Accelerated Death Benefit

11. Saver’s Select Simple Underwriting
Short simple application for quicker turnaround time
No Blood through age 40 & 500K, age 50 & 250K
Easier for your client
Two underwriting bands -- Preferred and Standard allow agent to sell rate with confidence
No need to resell case at delivery with higher rate
Your Client: Male 45, 6’0 248, BP 150/90 Cholesterol 260, HDL 7.0 , one parent die before age 60 due to heart or cancer…
gets our best rate!

12. Saver’s Select Liberal Preferred Underwriting
Liberal Height & Weight
Liberal blood pressure readings
150/90 age 50 and younger
160/95 ages (blood pressure treatment allowed if controlled over last 2 years)
Cholesterol
260 age 50 and younger
280 ages 51 to 65
300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0 (Cholesterol treatment allowed if controlled over last 2 years)

13. Saver’s Select - Get Paid Faster
Less than 30 days turnaround on fully underwritten applications
Easy to manage pending reports - SalesLink
Weekly EFT available
And Let’s talk commissions…
High First Year Rate
Commissionable policy fee
AND
Renewals up to 10 Years

14. Saver’s Select Riders Disability Protection Rider
Maximum monthly benefit is the lesser of:
$3,000 monthly or
66 2/3% of monthly pay
Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of “any occupation” for which the insured may qualify by reason of education, training or experience
Must be added at issue only
90 day wait 2 year benefit

15. Other Insured Rider
Using this rider - up to 4 people can be insured under the same policy.
Ideal for business - allows policyowner to add or drop insureds as needed.
The death of one insured does not affect coverage for the others.
Face amounts may vary by individual.
Available for all term periods.

16. Children’s Level Term Life Rider
One premium is charged for all covered children
Issue ages: 15 days through 18 years of age; age last birthday
Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000
If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25.
Convertible to age 25.

17. Accelerated Benefit Rider
If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a maximum of $250,000
Must be elected at policy issue.
No Premium charge.
One time administrative fee of $350 at time of claim.

18. Ultimate Income Endorsement
Ideal for Income Replacement Sales
Easier to understand for Client
Selling Income - Not Face Amount
Flexibility in Death Benefit Payment
Usually results in sizable discount over traditional capital approach to needs determination
Consider the following example...

19. Ultimate Income Endorsement
40 year old Male Preferred NT
Wants death for immediate cash needs
Also needs $3,000 per month income replacement for 25 years until age 65
Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years.
With a traditional capital needs approach the cost would be $1,156
Utilizing the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of $877 which represents a savings of 24%.

20. Ultimate Income Endorsement
The Ultimate Income Rider allows the policyholder to designate how the benefit will be paid with any or all of the following options:
An initial lump sum payable at death to take care of immediate cash needs.
A choice of 5 to 25 years of dependable guaranteed monthly income.
A final lump sum to be used when the income stream is completed.
This benefit calculation is software supported.

21. Ultimate Income Endorsement
Other Benefits
Can be changed at any time by Owner
Guarantees Income at a time it is needed most
Allows the spouse to “control” proceeds from the grave
Easier to sell actual income instead of large face amounts
Flexibility in death benefit design can reduce premiums in competitive situations.
Eliminates concern for investment expertise.

22. Saver’s Select Riders
Money Back Rider
Concept:
Coverage for your client if they need it…return of premium if they don’t!
Available at issue only
Typically increases the premium by 30% on the 30- year term, by 90% on the 20-year term, and by 144% in the 15- year term
IS IT A GOOD DEAL FOR YOUR CLIENT?

23. Saver’s Select Riders Money Back Rider Let’s assume the following:
Male / Age 45 / Pref. Non-tobacco / $500,000
Saver’s Select Term $500,000 w/o Return of Premium = $
Saver’s Select Term $500,000 w/ Return of Premium = $
Increased cost to provide guaranteed Return of Premium =
$340.00
Additional $ generates a guaranteed refund of
premium of $48,450 at the end of 30 years.
The net result...

24. Net after-tax guaranteed equivalent over 30 years
Saver’s Select Riders
Money Back Rider
8.67%
Net after-tax guaranteed equivalent over 30 years

25. Saver’s Select Riders Money Back Rider
Full money back is paid if the policy is kept in force to the end of the term period
No money back is paid for lapses in the first 5 policy years
Partial money back is available for lapses after 5 policy years, in the following percentages of premiums paid:

26. SAVER’S SELECT TERM COMPARISON
COMPULIFE TERM4SALE
03/07/01
Information is deemed reliable.
Rates subject to change
by the minute.

27. Saver’s Select Term Comparison

28. Saver’s Select Term Comparison

29. Saver’s Select Term Comparison

30. Saver’s Select Term Comparison

31. Saver’s Select Term Comparison

32. Saver’s Select Term Comparison

33. Saver’s Select Benefits
How good is age last birthday?

34. Saver’s Select Benefits Age Last Birthday
50% of the time you have a better rate than the competition-- just because of age
Less confusing to your clients
Difference in Rates for competitors:
Male N/S 45 and 46 Pref. 30/10
Federal Kemper: 9% increase
First Penn-Pacific: 12.5% increase
Old Line Life: 12.5% increase

35. Saver’s Select Term Comparison

36. Saver’s Select Benefits
What is better than a fully guaranteed 30 year term life insurance product?

37. Saver’s Select Benefits
A 30 year term life insurance product from F&G Life with a return of premium rider!

38. Saver’s Select Benefits Return of Premium Rider
Compare 30 year term product with fully guaranteed rates versus 30 year term with 10 years guaranteed and the Return of Premium Rider
Male 45 $500,000 non-smoker Preferred Class:
F&G Life preferred with Return of Premium $1,615
First Penn-Pacific Life GTO30 $2,125
The Old Line Life $1,970
North American $1,750
Protective Life $1,615
West Coast $1,745
Coverage with more than canceled checks
End of 30 year period ROP $48,450

39. A GREAT SALES OPPORTUNITY
X,XXX,XXX term life insurance policies sold over last 5 years.
7 out of 8 illustrated were issued other than best rate
No renewal commission
No service fees
Most without Disability Income rider
Most without Return of Premium Rider
Introducing F&G Life’s….

40. Saver’ Select Term Exchange Program
Full Commissions!
Non-Medical
No Medical Examination
No Blood
No HOS
Short-Form Application
Renewals up to 10 years.
Any fully-underwritten term issued in last 5 years*
*consult ineligible carrier list

41. Saver’s Select Term Exchange Program
The Hottest Term Product in America is Sizzling!
Term to Term exchange
Up through age 60
Face amounts from $150,000 to $500,000
Rider’s are transferred if available on Saver’s Select
Up to 3 additional insureds can be added to 1 policy
Can add Return of Premium Rider
Initial Premium Draft - NEW
Preferred class available

42. Saver’ Select Term Exchange Program
Simple Process
Complete Short-form application
Attached original policy and photocopy of app & medical exam
Complete transfer of ownership form
Complete exchange transmittal
Initial Premium Draft or PAC if requested
State replacement form if applicable

43. Saver’s Select Term Exchange Program
Ineligible Carrier List
Empire General
F&G Life (no internal exchanges allowed)
Guaranteed Trust
Lincoln Benefit
Manhattan National
The Midland
Merit Life
State Life
United of Omaha
U.S. Financial

44. Saver’s Select Term Exchange Program

45. Summary and Conclusions
F&G Life has designed Saver’s Select to aggressively compete in the “neglected” brokerage term market
Saver’s Select exemplifies F&G Life’s commitment to niche market opportunities
Saver’s Select delivers distinct benefits to your clients
Agents now have a product that they can afford to sell with less hassle for you & your customer

46. Saver’s Select…..Simply
“Benefits for your clients if they need them…return of premium if they don’t”

47. Saver’s Select Marketing Materials