PROTECTING YOUR
FUTURE
PLC.6355 (03.13)
A Woman’s Guide
to Life Insurance
TODAY,
I tried something new.
2
TODAY,
TODAY,
I achieved balance
I achieved balance.
3
TODAY,
I took care of
TODAY,
someone special.
I achieved balance.
4
TODAY,
I found my
inspiration.
5
TODAY,
I set a new goal.
6
TODAY,
TODAY,
I began
a new
adventure.
achieved
balance.
7
TODAY,
I made a plan
to protect tomorrow.
8
TODAY,
I made sure she
had a secure future.
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PROTECTING YOUR
FUTURE
A Woman’s Guide
to Life Insurance
Agenda
•
•
•
•
•
•
Why think about life insurance?
Myths about life insurance
Reality check
How much will you need?
Insurance options
Getting started
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Why think about life insurance?
• You are valuable.
12
Why think about life insurance?
You may be underinsured*
• Three in ten American households are uninsured
• Half of American households say they need
more life insurance.
• Only 1 in 3 women have life insurance.
• One-third of married women own no life
insurance.
* Facts from LIMRA, LIMRA, September 2012.
Women Need Life Insurance, Too!, Millionaire or Bust.com, March 31, 2011.
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Why think about insurance?
• How will your family:
– Cover the mortgage
– Meet basic living expenses
– Pay for childcare and education, now and in
the future
– Pay off car loans and credit-card debt
– Leave a legacy for future generations
– Manage final expenses
14
Myth #1:
I stay at home
and don’t need
it. My husband
has insurance.
Beth, age 32
15
Don’t Undervalue Yourself!
Annual estimated salary: $112,940.45
CEO
3.2 hours
Housekeeper
14.8 hours
Laundry operator
6.3 hours
Computer operator
8.9 hours
Day care teacher
13.7 hours
Driver
7.9 hours
Janitor
7.7 hours
Psychologist
7.7 hours
Facilities manager
10.7 hours
Can your
family afford to hire 13.9
allhours
these people?
Cook
Source: www.salary.com
16
Don’t Undervalue Yourself!
Annual estimated salary: $ 112,940.45
For 15 years
x
15
$1,694,106.70
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Myth #2: We don’t
have children. We
don’t need life
insurance.
Tina, age 39
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Can your husband afford…
•
•
•
•
•
•
The mortgage/rent?
Utilities?
Car loans?
Credit-card debt?
Student loans?
Final medical and funeral expenses?
19
Myth #3: Our
children are
grown. It’s time
to cancel our
policies
Carol, age 55
20
Can your spouse or children afford…
• To pay for your final medical and funeral
expenses?
• To take time off of work to grieve?
• Future expenses without additional income or
resources?
• The pressures of being in the “sandwich”
generation?
• To pass on something to your grandchildren?
21
Myth #4:
Insurance
is too
expensive.
Karen, age 42
22
Can you afford not to?
$500,000 of life insurance coverage
for the next 10 years
$20.36 per month
(or less than 65 cents a day!)
Case studies and benefit values represented as part of this presentation are based on hypothetical client inputs. Actual
results will vary based on a variety of factors including age, gender, health, and other underwriting factors. This example
assumes a Protective Custom Choice UL initial level death benefit period of 10 years; 42 year old female, select preferred
non-tobacco rate class.
23
Myth #5: I am
single with
no children.
I don’t need
insurance.
Emily, age 35
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Plan for now, and for your future
• Will you:
– Have enough coverage for any debts you
leave behind?
– Leave enough for your final medical and
funeral expenses?
– Lock in coverage now, and secure your
future?
25
5 Myths
1. I stay at home and don’t need it. My husband
has insurance.
2. We don’t have children. We don’t need life
insurance.
3. Our children are grown. It’s time to cancel our
policies
4. Insurance is too expensive
5. I am single with no children. I don’t need
insurance.
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 A Reality Check
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Would your family
be able to
continue their
standard of living
without your
income?
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If you died
tomorrow, would
your family be
able to continue
without hiring help
for services like
child care, elder
care or
housekeeping?
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Does your
family have
the resources
it needs to
provide for
future
emergencies
or higher
education?
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Do you have a plan
to pay all your debts,
like mortgages, car
loans, or credit
cards?
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Do you have
coverage for
long-term care
expenses?
32
Can you afford to leave a legacy?
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How much will you need?
• Calculate the income you need:
– Annual income replacement
– Years income is needed
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How much will you need?
• What Else You Need to Cover:
– Immediate Needs
– Debts and Obligations
35
How much will you need?
Calculate how much you need:
Annual income replacement
x Years income is needed
+ Cash for immediate needs
+ Debts and obligations
- Total available funds
Estimated life insurance needed
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Types of life insurance
•
•
•
•
•
Universal Life
Term
Variable Universal Life
Survivorship
Whole Life
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Universal Life
•
•
•
•
Flexible premium payments
Adjustable death benefit coverage
Tax-deferred growth on policy value
Access to policy cash values through
loans and withdrawals
Lapse protection guarantees the policy death benefit for the duration of the guarantee and does not cover cash or
surrender value. Loans, withdrawals, and other policy and premium changes will affect the cost and length of protection.
Failure to make premium payment as planned may cause the policy to lose lapse protection and premiums required to
restore it could be significantly higher. Refer to the policy and endorsements for complete terms, conditions, and limitations.
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Term
• Provides coverage for a specific period
of time
• Generally less expensive than
permanent insurance
• Primarily for income protection,
mortgage protection, or to cover
education costs or other debts
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Variable Universal Life
• Flexible premium payment options to fit
your situation
• Builds cash value on a tax deferred basis
• Designed to provide life insurance
protection with an element of long-term
investment
Variable universal life insurance involves the risk of investing in stocks, bonds and other securities, including market,
interest rate and credit risk and loss of principal. If the investment performance of underlying investments is poorer than
expected (or if sufficient premiums are not paid), the policy may lapse or not accumulate sufficient value to fund the
intended application. Investments in variable universal life insurance policies are subject to fees and charges from both the
insurance company and the managers of underlying investments. Loans and withdrawals may negatively impact policy
value, investment performance, death benefit, and any Lapse Protection.
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Survivorship Life
• Insures two people, usually a couple.
• Paid upon the death of the second person.
• May be more affordable for a couple than
two separate insurance policies.
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Whole Life
• The simplest form of permanent life
insurance.
• Protects you for your entire life.
• Guaranteed premiums, death benefit and
cash value.
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Compare Insurance Types
Universal
Life
Term
Variable
Universal Life
Survivorship
Whole Life
Death Benefit





Designed for low cost


Access to your money
Guaranteed cash value



Market Participation
Tax advantages
Flexible payments










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Getting Started
• Estimate your life insurance needs with
materials provided
• After you have reviewed your situation,
your advisor can help you determine your
next steps.
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Video link provided by The Life Foundation: http://www.lifehappens.org/legacy/ -
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PROTECTING YOUR
FUTURE
A Woman’s Guide
to Life Insurance
46
Questions and Answers
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Important Information
This presentation is intended as general educational information about insurance and its importance in
the lives of women. It is not intended to represent or promote any specific products or services offered
by Protective Life. For information about Protective Life's products and services contact your insurance
or financial representative or contact Protective Life directly at 1-800-866-9933 or www.protective.com.
Protective or Protective Life refers to Protective Life Insurance Company (PLICO) and its affiliates,
including Protective Life & Annuity Insurance Company (PLAICO). Annuities are issued by PLICO in all
states except New York and in New York by PLAICO; securities issued by Investment Distributors, Inc.
(IDI) the principal underwriter for registered products issued by PLICO and PLAICO, its affiliates. All
companies are located in Birmingham, AL.
Protective Custom Choice UL (UL-22) is a universal life insurance policy issued by Protective Life
Insurance Company, Birmingham, AL. Policy form numbers, product features and availability may vary
by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a
two-year contestable and suicide period. Benefits adjusted for misstatements of age of sex. In Montana,
unisex rates apply.
The tax treatment of life insurance is subject to change. Neither Protective Life nor its representatives
offer legal or tax advice. Purchasers should consult their legal or tax representative regarding their
individual situation.
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