Assurity Life’s– Critical Illness Insurance, NonMed Term 350, and
Simplified Whole Life Insurance Products
USBI# 948566 062414
A219-1013 (Rev. 12/13)
Critical Illness
• Why Critical Illness Insurance
• What is Critical Illness Insurance
• Expense of a Heart Attack
• Portfolio Turmoil
• How to access Critical Illness Coverage
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Why Critical Illness
“You need Critical Illness
insurance not because you are
going to die, but because you are
going to survive.”
Dr. Marius Barnard
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What is Critical Illness Insurance
Coverage that provides a lump sum cash payment
Helps cover costs of care and treatment
• Hospital expenses
• After Care expenses
Benefits of Critical Illness Insurance can help:
• Replace lost income
• Provide financial protection
• Offset gaps in income due to waiting periods
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Expense of a Heart Attack
“The most important thing to protect yourself is make sure
that you have adequate Health Insurance Coverage.”
Paul A. Heidenreich, MD
Associate Professor of Medicine
Stanford University
Average cost* of a severe heart attack
a less severe heart attack
*National
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Business Group on Health, 2010
For Financial Professional Use Only
$ 1,000,000
$ 760,000
Detailed Expenses
Consider this hypothetical example of expenses:
Ambulance and Emergency Room
Ambulance Expense (range $800 to 1,500) $
Medical Support in Ambulance $
ER $
Labs $
EKG $
Miscellaneous (x-ray, drugs, etc.) $
800
100
250
500
300
500
$
2,450
10,000 $
$
50,000
52,450
ICU Care
(assume five days) $
Major Hospital Heart Center
(including surgeon fees - range $22,000 to $25,000) $
(not including surgeon fees - range $5,000 to $15,000) $
25,000
15,000
$ 92,450
Insurance Deductible $ (7,500)
$ 84,950
20% Co-pay $ (16,990)
$ 67,960
Total Out-Of-Pocket $ 24,490
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Portfolio Turmoil
What is the potential impact when liquidations
are occurring during the accumulation phase of
a retirement plan?
• Which assets will be liquidated first?
• Is there a impact to taxation? Premature penalties?
• Will your client increase retirement funding when they are
able to return to work? If not, what is the impact?
• During disability – no contributions to qualified plans
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Options
Two ways to earmark for this:
1) Block off a big health care emergency fund and use
the balance to live on and for travel, entertainment
and the things you have earned
2) Block off a small monthly amount for health care
insurance and use the bigger balance to live on and
for travel, entertainment and the things you have
earned
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How to access Critical Illness Coverage
Assurity’s Critical Illness
Insurance
Two product options:
 Simplified Critical Illness
 Fully Underwritten Critical Illness
U.S. Bancorp Investments is not affiliated with Assurity Life Insurance Company. Critical
Illness products underwritten by Assurity Life Insurance Company, Lincoln, Nebraska.
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Simplified Critical Illness Basics
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Issue ages: 18 to 64*
$5,000 to $50,000 in benefits available
12 conditions covered
Guaranteed renewable to age 75
Riders include:
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Return of Premium Rider
Disability Waiver of Premium Rider
Accidental Death Benefit Rider
Spouse Critical Illness Benefits Rider
Children’s Critical Illness Benefits Rider
* To age 59 in some states.
Policy form I H0810 or CI 005
Product availability, rates and features may vary by state. (R 9/12)
Guarantees are backed by the claims paying ability of Assurity Life Insurance Company.
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Simplified Critical Illness Basics
12 Covered Conditions
The policy pays up to 100% from
each category and when 100%
from a category has been
disbursed, that category closes,
and benefits from that category
are no longer available.
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Suitability
Who is a suitable candidate for simplified
critical illness?
• Anyone who is not on Medicaid or Medicare.
• Anyone who has not been postponed or declined for CI
coverage
• Anyone who does not plan to live or travel outside the U.S.
and Canada for more than 2 months during the next 2 years.
• Anyone who can answer “no” to all questions in the Section 5
Health Section of the application
• In CA, MN and NJ—must own major medical insurance
• Residents of NY are not eligible for any Assurity product
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Fully Underwritten Critical Illness Basics
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Issue ages: 18 to 64
$50,000 to $500,000 in benefits available
21 conditions covered
Guaranteed renewable for life
Riders include:
• Disability Waiver of Premium Rider
• Accidental Death Benefit Rider
• Spouse Critical Illness Benefits Rider
• Children’s Critical Illness Benefits Rider
Policy form I H0820 or CI 007
Product availability, rates and features may vary by state.
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Fully Underwritten Critical Illness Basics
21 Covered Conditions
The policy pays up to 100% from each
category and when 100% from a
category has been disbursed, that
category closes, and benefits from that
category are no longer available.
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Critical Illness Underwriting
Simplified Critical Illness
• Short application
• Accept/reject
• 4-day service guarantee
• E-application available
Fully Underwritten Critical Illness
• Similar to preferred life underwriting
• E-application now available
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Suitability
Who is a suitable candidate for fully underwritten
critical illness?
• Anyone who is not on Medicaid or Medicare.
• Must meet Assurity’s age, weight and height guidelines.
• This product requires traditional underwriting.
• All applicants are subject to individual underwriting approval by
Assurity.
• In CA, MN, and NJ—must also have major medical insurance
• Anyone who does not plan to live or travel outside the U.S. and
Canada for more than 2 months during the next 2 years.
• Residents of NY are not eligible for any Assurity product
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Suitability
Critical Illness coverage is not meant
to replace major medical insurance.
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Summary – The High Cost of Health Care
Health Care may be one of the greatest expenses
in retirement.
Critical Illness coverage can help provide the
flexibility to:
• Pay off debt
• Cover unexpected medical expenses
• Protect retirement assets from early liquidations
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Financial Professional Responsibilities
Limitations of Authority – DO NOT:
• Accept risk on behalf of Assurity.
• Promise reinstatement of coverage.
• Waive or alter policy terms.
• Extend credit to applicants/insureds.
• Collect any premium other than the first.
• Deliver a policy when you know an impairment of
health is not disclosed on the application or
occurred after the application was taken.
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Financial Professional Responsibilities
Duties: You must comply with Assurity’s, as well as USBI’s rules
about replacements:
• Replacement is: Whenever an existing policy or contract is terminated,
converted or otherwise changed in value to add another policy to the
customer’s portfolio.
• Recommend the replacement only when replacement is suitable for the
customer.
• Factors to consider with your client: The financial impact to the customer of
the replacement, whether a new contestability period and/or suicide clause will
start under the new policy (if applicable); and whether the customer will have to
resubmit to underwriting to buy the new policy.
• Never recommend that a customer cancel an existing policy until a new policy
is in force, and the customer has determined the new policy is acceptable.
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Financial Professional Responsibilities
Duties:
• You may collect the first premium only.
• You must maintain a current license and valid
appointment in all states in which you are selling.
• You must submit all customer complaints to USBI
Compliance promptly.
• Submit all advertising materials to USBI Product
Management and USBI Compliance for approval
prior to use.
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What is NonMed Term 350?
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Issue ages 18-65 (10- & 15-year plan)
18-60 (20-year)
18-50 (30-year)
Face amounts: $50,000-$350,000
Non medical Underwriting
– App, MVR, MIB, Script Check
• NOT an accept/reject product;
three underwriting classes
• Convertable to Assurity Permanent Life
Products
Policy form I L0760. Product and rider availability, rates and features may vary by state.
Optional riders
• Disability Waiver of Premium Rider
• Monthly Disability Rider
– Two-year benefit; 90-day elimination; simplified underwriting
(1.5% of face amount up to $3,000 maximum)
• Accident Only Disability Rider
• Children’s Term Insurance Rider
• Critical Illness Rider
– $20,000-$100,000 lump-sum benefit
– Assurity three-category approach
• Return of Premium Rider
– Available for 20- & 30-year plans
• Other Insured Rider
Underwriting Process
App
Application
Agent takes an application (paper or
Home
electronic)
Office
and submits it to Assurity.
Automated Underwriting
Information is put into our automated system
Automated to check MIB, Script check and MVR.
Underwriting Decision
Decision is rendered from the black box
(approval or decline) or kicked out to an
underwriter for review if we need additional
Decision
information.
Additional Information
If we need additional information, the
underwriter may request a telephone
interview or order medical records.
Decision
Based on information received, a final
decision will be made.
What is Term 350 Plus?
Term Periods: 10, 15, 20, 30 years
Issue Ages:
10-yr:
15-yr:
20-yr:
30-yr:
Ages 18 thru 74 – non-tobacco; ages 18 thru 70 – tobacco
Ages 18 thru 65
Ages 18 thru 60
Ages 18 thru 50 – non-tobacco; ages 18 thru 45 – tobacco
Issue Amounts: $350,001 and up (Ages 66-74 are $100,001 and up)
Underwriting Classes:
Preferred+ non-tobacco
Preferred non-tobacco/tobacco
Standard non-tobacco/tobacco
Policy form I L0760.
Optional riders
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Disability Waiver of Premium Rider
Other Insured Rider
Monthly Disability Income Rider
Accident Only Disability Income Rider
Children’s Term Insurance Rider
Return of Premium Rider
(available on 20- and 30-year plans of base policy,
Waiver of Premium Rider and ROP Rider only)
• Critical Illness Rider
Suitability
Who is a suitable candidate for NonMed Term 350/ Term
350+?
• Must meet Assurity’s age, weight and height guidelines.
• These products require traditional underwriting.
• All applicants are subject to individual underwriting
approval by Assurity
• Anyone who does not plan to live or travel outside the
U.S. and Canada for more than 2 months during the next
2 years.
• Residents of NY are not eligible for any Assurity product
What is Simplified Whole Life?
• Non-participating whole life insurance with simplified
underwriting
• Level and guaranteed premiums
• Simplified underwriting—no medical exams or fluids
• Application—Applicant information covered
in 1½ pages; 10 “yes/no” health questions; E-app
• Plan options:
– “Level Benefit” for no health issues
– “Graded Benefit” for some health issues
– “Modified Benefit” for more significant health issues
Policy forms I L601, I L602, I L603.
Simplified Process
• 10 Health Question Application
• Phone Interview for applicants over 40 -
877-611-4701
• Preapproval over the phone in most cases
• No paramed, blood draw, or urinalysis
• Qualifies for the Assurity Advantage
Policy forms I L601, I L602, I L603
Products availability and features may vary by state
Simplified Life Basics
What is the Best Plan for My Client?
App Section A Questions
Answer any “Yes”
REJECT
Answer all “No”
App Section B Questions
Answer any “Yes”
MODIFIED
Answer any “Yes”
GRADED
Answer all “No”
App Section C Questions
Answer all “No”
LEVEL
The Ideal Client
• Clients planning for “Final Expense”
average cost of a funeral is $7,755
• Clients with medical conditions limiting
ability to obtain coverage
• Clients with modest insurance needs
–where fully underwritten unavailable
• Clients looking for simple, permanent
life insurance solution
Policy forms I L601, I L602, I L603
Products availability and features may vary by state
Suitability
Who is a suitable candidate for Simplified Whole Life?
• Anyone who has not been charged with or convicted of a
felony in the past two years.
• Anyone who can answer “no” to all 6 questions in Portion
A of Section 6 Health Section of the application
• For the Graded Death Benefit Plan can answer “no” to
Question 7 in Portion B of Section 6 Health Section of the
application
• For the Level Death Benefit Plan can answer “no” to
Questions 8 through 10 in Portion C of Section 6 Health
Section of the application
• Anyone who does not plan to live or travel outside the
U.S. and Canada for more than 2 months during the next
2 years.
• Residents of NY are not eligible for any Assurity product
Disclaimer
Investment products and services are available through U.S. Bancorp Investments, the marketing name
for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage
subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
Insurance products are available through various affiliated non-bank insurance agencies, which are U.S.
Bancorp subsidiaries. Products may not be available in all states. CA Insurance License# OE24641.
Policies are underwritten by unaffiliated insurance companies and may not be available in all states.
Policy rates and features may vary by state. Clients should consult with their tax advisor regarding taxrelated issues.
Guarantees are backed by the claims-paying ability of the issuing insurance company, Assurity Life
Insurance Company. U.S. Bancorp Investments is not affiliated with the entities named with this
publication. This is for the information of Financial Advisors only, and may not be reproduced, shown to
members of the public or used as sales literature. This information does not satisfy a Representative’s
obligation to assess the suitability of a particular investment for a particular investor. Financial Advisors
are reminded of their obligation to have a fair and balanced conversation with the client, including both
the benefits and downsides of an investment recommendation.
USBI# 1013219 102013
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For Financial Professional Use Only