Life Insurance Company of the Southwest
Survivorship
Products
Joshua Littrell
Key Account Manager
National Life Insurance Company® | Life Insurance Company of the Southwest™
National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX
and their affiliates. Each company of NLGroup is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized
insurer in New York and does not conduct insurance business in New York.
TC72205(0213)
LR11404(0111)
Life Insurance Company of the Southwest
Survivorship Product Overview
SIUL
Death Benefit
Very Flexible
Premium
Cash Value
Flexible
Interest credits based on the changes in a
major market index.
Downside protection with upside potential
All indices are unmanaged and you cannot invest directly in any market index.
Guarantees are dependent upon the claims-paying ability of the issuing company.
LR11404(0111)
Life Insurance Company of the Southwest
NL & LSW LifeCycle Solution SIUL
Not your typical Survivorship product.
• Cash value accumulation
• Survivor Protection Rider – 1st Death Protection
• Besides the 2nd death protection, is also attracitve for:
o Potential source of retirement income through policy loans
and withdrawals, or using LIBR*
o Short funding estate preservation approach
o Business Protection and Continuation Strategies
• Minimum Interest Rate of 2.5% at death or surrender
LR11404(0111)
Life Insurance Company of the Southwest
NL & LSW LifeCycle Solution
Availability & Options
Issue
Age
Min
Face
Amount
0-85
$250,000
(age
nearest
birthday)
Max Face
Rate Class
Amount
Subject to
underwriting
&
reinsurance
Six rate classes
that vary on
clients’
combined rate
classifications
Riders
•ABR: Terminal, Chronic
& Critical
•Add’l Protection Benefit
•Balance Sheet Benefit
•Death Benefit Protection
•Estate Preservation
•LIBR
•Policy Split Options
•Overloan Protection*
•Survivor Protection
•Systematic Allocation
*Substantial limitations apply to exercising the Overloan Protection Rider, including that the policy be in force for at least 15 years and the insured
having attained the age of 75.
LR11404(0111)
Life Insurance Company of the Southwest
Individual vs. Survivorship?
• One Insured
• Need for death benefit
protection for both insureds
• Need for ABR benefits on both
insureds
• Wants to have their policy
purchased through their
pension plan
Consider Individual Policies
LR11404(0111)
• Two Insureds
• Most concerned about death
benefit at the second death
• Possibly looking for some
death benefit protection at the
first death
• Health issues or not insurable
• ABR benefits for Surviving
Insured
Consider Survivorship Policies
Life Insurance Company of the Southwest
One Policy vs. Two
Value isn’t always measured in Dollars and Cents
LR11404(0111)
Life Insurance Company of the Southwest
Survivorship
Sales Ideas
LR11404(0111)
Life Insurance Company of the Southwest
When Survivorship Is The Product of Choice
Case facts
•
•
•
•
Husband and wife; husband primary bread winner
Husband has some health issues
Both husband and wife need a survivor benefit
Interested in the Tax-Free Retirement Strategy
Insure just the Husband
Insure just the Wife
The use of cash value life insurance to provide a tax-free source of retirement assumes that there is first a need for the death benefit
protection. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals
up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications
could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years.
LR11404(0111)
Life Insurance Company of the Southwest
When Survivorship
Is The Product of Choice
Insure both Husband and Wife
LR11404(0111)
Life Insurance Company of the Southwest
Being an Advocate
LR11404(0111)
Life Insurance Company of the Southwest
Multigenerational Planning
LR11404(0111)
Life Insurance Company of the Southwest
Grandparent or Parent
Grandparent
makes annual
gift to trust
Trust uses gift as
premium source
Survivor Protection
Rider, payable at
grandparent’s death,
can be used to pay
ongoing premiums
Gifting Opportunity*
Trust purchases Insurance policy insuring Grandparent and Grandchild
Trust is Owner and Beneficiary
After grandparent’s
death, the Accelerated
Benefit Riders can be
added to provide
benefits during
Grandchild’s lifetime in
the event of Terminal,
Chronic or Critical
Illness
Trustee can use policy
cash value, through
loans and withdrawals,
to make lifetime
distributions to
Grandchild for such
needs as college
expenses, home
purchase etc.2
Retirement Income can
be guaranteed for life
once the Lifetime Income
Benefit Rider is
exercised
Death proceeds
ultimately create a
legacy for
Grandchild’s family
Riders are optional, may be available at additional cost, and may not be available in all states.
*Assumes Grandparent dies first
1. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and
may affect your client’s eligibility for public assistance programs.
2. Policy loans and withdrawals will reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender values in the early
years may reduce policy values.
3. Certain criteria must be met to exercise the rider including but not limited to the insured’s attained age being between age 60 and 85, and that the
policy has been in-force at least 10 years. Insufficient policy values, outstanding policy loans and other considerations may also restrict exercising the
rider. Receipt of income benefits will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their benefits.
LR11404(0111)
Life Insurance Company of the Southwest
Special Needs Planning
LR11404(0111)
Life Insurance Company of the Southwest
Business Planning
Case Facts
• Consulting
Business
• Husband and
Wife – 50/50
owners
• Key Person
Protection
LR11404(0111)
Life Insurance Company of the Southwest
LifeCycle Solution Policy
Survivor Protection
Rider provides cash at
first death to help carry
business through
transition period
Cash Value grows taxdeferred while owned by the
business
BSB Rider provides a high
cash value to premium paid
for business balance sheet
If both die, proceeds
can be used to
continue to run the
business until buyer
is found
Business can access policy values for
business needs or future executive benefit
payments using policy loans and
withdrawals*
*Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may
reduce the policy’s cash value in early years.
LR11404(0111)
Life Insurance Company of the Southwest
Thank You!
LR11404(0111)
Life Insurance Company of the Southwest
Annuity Product Overview
Daniel Ulloa
Annuity Wholesaler
Life Insurance Company of the Southwest
LR11404(0111)
Life Insurance Company of the Southwest
SecurePlus Paramount 5
Life Insurance Company of the Southwest
SecurePlus Paramount 5
• Outstanding flexible premium deferred annuity for the
401 (k), 403(b), 457(b), IRA and NQ Markets
• Available with our Guaranteed Lifetime Income Rider*
• 10-10 Compliant (state and broker dealer friendly)
*Guarantees based on claims paying ability of the company. Rider available at an additional cost.
LR11404(0111)
Life Insurance Company of the Southwest
5% Immediate Interest Credit
• Applied to every premium paid in the first 7 Policy Years
• That’s 105% of the premium earning interest from the
date of payment or receipt of premium
• Fully vested immediately – no strings attached
LR11404(0111)
Life Insurance Company of the Southwest
Availability
– Maximum Issue age: 80
– Available for 401 (k), 403(b), 457(b), IRA, Roth
IRA, Simple IRA, SEP IRA, Roth 403(b)
LR11404(0111)
Life Insurance Company of the Southwest
Withdrawal Charges
– Declining Withdrawal Charge – 10 Years
– No MVA!
Policy
Year
Issue
Age
1
2
3
4
5
6
7
8
9
10
11+
0-80
10
%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
* 59+
8¼
%
8¼
%
7¼
%
6¼
%
5%
4%
3%
2%
1%
0%
0%
*Only applies to AK, AL, CA, DE, MN, NV, NJ, OH, OR, SC, TX, UT, WA, if available
LR11404(0111)
Life Insurance Company of the Southwest
SecurePlus Preferred 6 &
Preferred 6 GLIR
Life Insurance Company of the Southwest
SecurePlus Preferred 6 Highlights
Plan Types
Qualified or Non-qualified except 412(i)
Bonus Accumulation Value
6% of the Accumulation Value vesting in years 11 -15
Issue Ages
0-80 (Actual Age)
Minimum Premium
$10,000
Maximum Premium
$ 1,000,000 (0-75), $ 350,000 (76-80)
Free Withdrawals
10% of the Accumulation Value each year after the first Policy yr
Withdrawal Charge %
10, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0 (Reduced for age 59+ in some
states)
Riders (where approved)
Nursing Home and Terminal Illness at no additional cost
Income Riders
Preferred 6 GLIR at an additional cost (required on all sales)
Special Enhanced Life Income
(SELI)- in approved states
Available after 5th Policy Year if Annuitant is at least 55 and
cannot perform 2 of 6 ADLs permanently – annuitization benefit
Loans
Yes 403(b) and 457(b), up to 50% of cash value if plan permits
Guaranteed Minimum
87.5% of the premium paid growing at a rate between 1-3%
based on formula on file at state department of insurance.
LR11404(0111)
Life Insurance Company of the Southwest
SecurePlus Preferred 6 Delivers
• 6% Bonus Accumulation Value – vests 1/5th per year in years 11-15
– BAV included in the death benefit day-one
• Guaranteed Lifetime Income Rider*
– The Preferred 6 GLIR – includes 6% BAV beginning day one
• Extra Features - at no additional cost
– Special Enhanced Life Income Options where approved
– Nursing Care and Terminal Illness Riders where approved
*GLIR currently required on all sales
LR11404(0111)
Example - Accumulation Phase
55-year-old purchases $100,000 SecurePlus Preferred 6 with the Preferred 6 GLIR
LSW SecurePlus Preferred 6
Guaranteed Lifetime Income Rider
Accumulation Value
Benefit Calculation Base
Day One -
$100,000
3%* Average
Interest Credited
Annually Net Of
Rider Charges
Day One -
106,000
6.0% Compounding
Roll Up Rate
(*This is a hypothetical rate, and it
is not guaranteed. The rate will vary.)
AV End of Year 10 - $134,392
End of Year 10 -
189,829
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660
Example - Distribution Phase
Guaranteed Withdrawal Payments are elected at Age 65, Level Income Option
SecurePlus Preferred 6
Guaranteed Lifetime Income Rider
Accumulation Value (example only)
Benefit Calculation Base
End of Year 10
$134,392
End of Year 10 189,829
GWP
-$
8,542
The
greater of $125,850
the
AV after
Withdrawal
Accumulation Value or
+ $ 4,719
Benefit
Calculation
Base
(*Hypothetical rate)
3.75% interest*
Rider Charge
-$
1,173
$129,396
GWP
-$
8,542
BAV Transfer
+$
1,612
AV end of yr 11
Lifetime Income Calculation
189,829
X 4.5% (Guaranteed Withdrawal Percentage @attained age of 65)
$8,542 Guaranteed Income for Life
$122,466
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660
What Would you Choose?
• 90 BPs Income rider
• 90 BPs Income Rider
• Calculated of $134,392
• Calculated of $189,829
• For a cost of
• For a cost of
$1209.52 (declining)
• After 20 years
$1709.46 (level)
• After 20 years
$20,482.3
$34,189.20
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660
Nursing Care Rider
• Provides access to some or all of the accumulation value without
withdrawal charges
• Available after the first policy years and once the policyowner is
confined to a nursing facility for 60 consecutive days
• If under the age of 76 at issue then up to $250,000 of the
accumulation value may be withdrawn without withdrawal
charges
• If 76 or older at issue 25 percent of the accumulation value may
be withdrawn at one time without withdrawal charges in place of
the 10 percent free withdrawal
• Not available in all states
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660
Terminal Illness Rider
• Allows for up to $250,000 to be withdrawn without application of
withdrawal charges
• Available if the onset of the illness is after the first policy year
• Diagnosed terminal within 12 months
• Not available in all states
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660
What Are Your Next Steps?
How I Will Work with You
• Answer questions by phone or
email
• Determine your target markets
and how to utilize these
annuities
• Provide WebEx’s presentations
and make you an expert in our
products
• Increase your overall production
and annual income
National Life Insurance Company® | Life Insurance Company of the Southwest™
Agent Use Only
Form 10750(0612); LR 11660