Essential Life & Youth Essential Life 20-Pay Life Life Paid-up at 65 Level Pay to Age 121

Transcription

1 Essential Life & Youth Essential Life 20-Pay Life Life Paid-up at 65 Level Pay to Age 121 Agent Training Guide For agent use only Not for public distribution

2 How to Use this Guide This guide contains detailed product descriptions and features for Royal Neighbors Essential Life and Youth Essential Life products. Information on Youth Essential Life starts on page 4. Underwriting guidelines for both Essential Life and Youth Essential Life begins on page 5. 1

3 Essential Life Description 20-Pay Life Life Paid-up at 65 Level Pay to Age 121 Permanent Life Form series (not available in all states) Provides level death benefits payable upon the death of the insured Level premiums for the duration of the insured s life or to: Year 20 on the 20-Pay Life plan Age 65 on the Life Paid-up at 65 plan Age 121 on the Level Pay plan Provides guaranteed death benefits and guaranteed cash and loan values; certificate matures at age 121 Issue Ages (age last birthday) Essential Life issue ages: 20-Pay Life plan: Life Paid-up at 65 plan: Level Pay plan: Face Amounts Essential Life $25,000 minimum No maximum (subject to underwriting and reinsurance restrictions) Premiums Premiums can be paid by monthly Pre-Authorized Collection (PAC) or on a quarterly, semi-annual, or annual mode Modal Factors Mode Factor Annual 1.00 Semi-Annual 0.52 Quarterly PAC Monthly Premium Bands Bands by Face Amount: $25,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 and up Certificate Fees: Band 1: $50 annually Band 2: None Band 3: None Band 4: None Underwriting Classes: Ages 18 and up $25,000 - $99,999 $100,000 and up Super Substandard rating classes available through table 12 Loans Certificateowners may borrow against the cash value of the certificate Loans will bear an interest rate of 6.5% per annum with interest payable at the end of each certificate year Nonforfeiture Options Cash surrender a check for the cash value of the certificate, plus the cash value of any dividends on deposit and paid-up additional insurance minus any loan/lien indebtedness will be paid, provided the proper form is completed and submitted to the Home Office Reduced Paid-up Insurance a reduced amount of death benefit that the cash value of the certificate, minus any loan/lien, will purchase for the lifetime of the insured Extended Term Insurance insurance in the face amount of the whole life certificate, plus dividends and paid-up additional insurances, minus any loan/lien, for a term as long as the net cash value as a single premium will purchase at the insured s attained age Dividends Royal Neighbors does not expect that any dividends will be declared on this certificate. Riders Available (Riders may not be available in all states or may have 2

4 Available at Issue Ages Issue Ages Rider Issue ONLY Disability Waiver of Premium Y Accidental Death Guaranteed Insurability Y Accelerated Living Benefit Y certain restrictions) Disability Waiver of Premium Rider Form series 2081 Waives premiums in the event of total disability of the insured Disability must occur prior to the insured s 60th birthday Royal Neighbors will waive premiums until the insured is no longer disabled Available at the time of issue Waiver is subject to a 6-month waiting period First 24 months total disability unable to perform duties of regular occupation; after 24 months total disability unable to perform any occupation reasonably suited based on education, training, or experience Accidental Death Rider Form series 2082 Provides a benefit prior to the first anniversary date after the insured s 65th birthday Minimum additional death benefit is $25,000 Maximum additional death benefit is the lesser of 10 times the base face amount or $300,000 Guaranteed Insurability Rider Form series 2083 Guarantees the insured the right to purchase additional insurance at specified future option dates without evidence of insurability Ages where additional purchases are allowed: 25, 28, 31, 34, 37, 40, 45, 50, 55, 60 Life events where additional purchases are allowed: marriage, birth/adoption of a child, purchase of a primary residence (purchase of insurance for life event cancels next scheduled purchase option date) Minimum amount for any increase is the minimum amount allowed by Royal Neighbors on any permanent plan being offered Maximum increase for any one event or age is the lesser of the initial certificate face amount or $25,000 Lifetime maximum for additional purchases is $100,000 Expires at earlier of attained age 65 or after $100,000 of additional insurance has been purchased Available at time of issue Accelerated Living Benefit Rider Form series 1766 Must be elected at time of application No additional premium for the rider (in states where rider is approved) Qualifying Events When the Insured has been continuously confined to a nursing home for 90 days and the physician-certified confinement is expected to be permanent; When the Insured is diagnosed by a physician as having a terminal condition and has a life expectancy of 12 months or less. Up to 75% of the eligible death benefit can be accelerated (minimum $5,000, maximum $250,000) as a one-time single payment An accelerated benefit payment is subject to an administrative fee and interest; review the rider, form 1766 (with state variations), for complete information and provisions 3

5 Youth Essential Life Description 20-Pay Life Level Pay to Age 121 Permanent Life Form series (not available in all states) Provides level death benefits payable upon the death of the insured Level premiums for the duration of the insured s life or to: Year 20 on the 20-Pay Life plan Age 121 on the Level Pay plan Provides guaranteed death benefits and guaranteed cash and loan values; certificate matures at age 121 Issue Ages (age last birthday) Youth Essential Life issue ages: 20-Pay Life plan: 0-17 Level Pay plan: 0-17 Face Amounts Youth Essential Life $10,000 minimum No maximum (subject to underwriting and reinsurance restrictions) Premiums Premium options for Youth Essential Life are identical to Essential Life and can be paid by monthly Pre-Authorized Collection (PAC) or on a quarterly, semi-annual, or annual mode Modal Factors Modal factors for Youth Essential Life are identical to Essential Life. Mode Factor Annual 1.00 Semi-Annual 0.52 Quarterly PAC Monthly Underwriting Classes: Ages 0 and 17 (Ages 16-17) Loans Loan features for Youth Essential Life are identical to Essential Life loan features. See page 2 for details. Nonforfeiture Options Nonforfeiture options for Youth Essential Life are identical to Essential Life nonforfeiture options. See page 2 for details. Dividends Like Essential Life, Royal Neighbors does not expect that any dividends will be declared on Youth Essential Life certificates. Riders Available (Riders may not be available in all states or may have certain restrictions) Available at Issue Ages Issue Ages Rider Issue ONLY Disability Waiver of Premium Y Accidental Death Guaranteed Insurability Y Accelerated Living Benefit Y Descriptions and features for riders available with Youth Essential Life are identical to Essential Life rider features. See pages 3 for details. Premium Bands Bands by Face Amount: $10,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 and up Certificate Fees (identical to Essential Life): Band 1: $50 annually Band 2: None Band 3: None Band 4: None 4

6 Essential Life & Youth Essential Life Underwriting Guidelines These guidelines will help you classify risks quickly and as accurately as possible in a field situation. Be sure to include all the names of doctors, medications, hospitals, and treatments used by your client. The date of last illness and the nature and severity of the illness should be recorded. Always include the last date seen by a doctor or hospital and the reason for the visit. Underwriting Requirements: Application Form 1729 or 1730 (with state variations), check for state requirements Also, check for other state specific requirements Height Male Weight Average Maximum Maximum Maximum Super Height Female Weight Average Maximum Maximum Maximum Super Feet Inches Feet Inches Underwriting Conditions If any of the following conditions are present, no application should be submitted: AIDS, ARC (Aids Related Complex) Chronic Active Hepatitis or Kidney or Renal Failure, including dialysis Alzheimer s Disease/Dementia Cirrhosis of the Liver Severe Psychotic Disorder Angina unstable Congestive Heart Failure Not a U.S. resident Cancer within the last year or cancer Demyelinating disease, such as Lou Gehrig s Not a U.S. citizen or no green card that has metastasized (except skin cancer) Disease (ALS) or Muscular Dystrophy Travel to countries under State Department Advisory 5

7 Essential Life Underwriting Guidelines Super Family History Cholesterol/ HDL Ratio No tobacco use for 5 years* No cardiovascular disease or hereditary cancer in either parent or sibling prior to age 60 May not exceed 5.0 (without treatment) No tobacco use for 3 years* No death from cardiovascular disease or hereditary cancer in either parent or siblings prior to age 60 Current use* Not more than one parent death from cardiovascular disease or hereditary cancer prior to age 60 NA NA May not exceed 6.0 May not exceed 6.0 Levels Blood Pressure No history of treatment; may not exceed 140/85 Controlled with treatment; readings may not exceed 145/88 Controlled with treatment; readings may not exceed 145/88 Controlled with treatment; readings may not exceed 150/92 Alcohol/Substance Abuse No history No history in the past 10 years No history in the past 10 years No history in the past 5 years Driving History No DUI, DWI, or reckless driving in the past 5 years; no more than 1 moving violation in the last 3 years No DUI, DWI, or reckless driving in the past 5 years; no more than 2 moving violations in the last 3 years No DUI, DWI, or reckless driving in the past 3 years; no more than 3 moving violations in the last 3 years No DUI, DWI, or reckless driving in the past 2 years; no more than 3 moving violations in the last 3 years Aviation Not available for private pilots Private pilots given individual consideration Private pilots given individual consideration For private pilots an extra premium may apply Avocation Ratable avocation: Not available Ratable avocation: Not available Ratable avocation: Not available Extra premium may apply Military Retired/inactive only Individual consideration Individual consideration Individual consideration Note: Certain medical conditions may disqualify applicant from preferred rates. * Includes the use of nicotine replacement therapy 6

8 Essential Life & Youth Essential Life Underwriting Guidelines The following chart outlines the requirements needed to facilitate the underwriting of all submitted life insurance applications. Refer to product guidelines for specific age limits and minimum face amounts. Issue Age Up to $49,999 $50,000- $99,999 $100,000- $249,999 $250,000- $999,999 $1,000,000- $1,499,999 $1,500,000- $4,999,999 $5,000, NM NM Rx Rx, APS IC IC Not Accepted Rx Rx Rx, PM, MVR Rx, PM, MVR Rx, PM, MVR Rx, PM, MVR, IR Rx, PM, IR, MVR, APS Rx Rx Rx, PM Rx, PM, MVR Rx, PM, EKG, MVR Rx, PM, IR, EKG, MVR Rx, PM, IR, ST, MVR, APS Rx Rx, PM Rx, PM Rx, PM, MVR Rx, PM, EKG, MVR, APS Rx, PM, IR, ST, MVR, APS Rx, PM, IR, ST, MVR, APS 66+ Rx, MA Rx, MA Rx, MA Rx, MA, EKG, MVR Rx, MA, EKG, MVR, APS Rx, MA, IR, *ST, MVR, APS Rx, MA, SB, IR, *ST, MVR, APS The amount is based upon the total amount of coverage applied for, issued, and placed in force with Royal Neighbors of America. We reserve the right to order additional requirements as needed to make a risk assessment. APS: Attending Physician Statement/Medical Records (May also be requested at other age/face amounts as required) EKG: Electrocardiogram IC: Individual Consideration; contact Underwriting prior to writing application IR: Inspection Report MA: Mature Assessment, Paramed exam, Blood Profile/Urinalysis NM: Non-Medical MVR: Motor Vehicle Report PM: Paramed exam, Blood Profile/Urinalysis Rx: Prescription Profile SB: Special Blood - NTPro-BNP ST: Stress Test EKG (*UW authorization required before ordering stress test at age 66+) 7

9 Level Pay Annual Premiums per $1,000 Band 1 (Face Amount $10,000 - $99,999; Ages 0-85) Add $50 certificate fee Modal Premium Calculation ((Rate X Units X Modal Factor) rounded to 2 digits) + ((Policy Fee X Modal Factor) rounded 2 digits) = Modal Premium Modal Factors Mode Factor Annual 1.00 Semi-Annual 0.52 Quarterly PAC Monthly

10 Level Pay Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 0-45) 9

11 Level Pay Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 46-85) 10

12 Level Pay Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 0-45) 11

13 Level Pay Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 46-85) 12

14 Level Pay Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 0-45) 13

15 Level Pay Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 46-85) 14

16 20-Pay Life Annual Premiums per $1,000 Band 1 (Face Amount $10,000 - $99,999; Ages 0-80) Add $50 certificate fee 15

17 20-Pay Life Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 0-39) 16

18 20-Pay Life Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 40-80) 17

19 Issue Age Super 20-Pay Life Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 0-40) Male Super Female

20 20-Pay Life Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 41-80) 19

21 20-Pay Life Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 0-40) 20

22 20-Pay Life Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 41-80) 21

23 Life Paid-up at 65 Annual Premiums per $1,000 Band 1 (Face Amount $25,000 - $99,999; Ages 18-60) Issue Age Male Female Male Female Issue Age Add $50 certificate fee 22

24 Life Paid-up at 65 Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 18-30) Male Female Issue Age Super Super

25 Life Paid-up at 65 Annual Premiums per $1,000 Band 2 (Face Amount $100,000 - $249,999; Ages 31-60) 24

26 Issue Age Super Life Paid-up at 65 Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 18-30) Male Super Female

27 Life Paid-up at 65 Annual Premiums per $1,000 Band 3 (Face Amount $250,000 - $499,999; Ages 31-60) 26

28 Life Paid-up at 65 Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 18-30) Male Female Issue Age Super Super

29 Life Paid-up at 65 Annual Premiums per $1,000 Band 4 (Face Amount $500,000 +; Ages 31-60) 28

30 Essential Life & Youth Essential Life Rider Rates 4. Guaranteed Insurability Rider (issue ages 16-45) Annual premiums Example: (Base Annual Premium + Rider Annual Premiums) 10 ( ) X Waiver Rate, rounded to 2 decimals) = Waiver Premium Example: ((1.15. X (ADB face/1000)), rounded to 2 decimals) 20-Pay Life Life Paid-Up at 65 Whole Life Issue Age Rate ($) Issue Age Rate ($) Issue Age Rate ($)

31 Royal Neighbors of America Insurance with a Difference SM As a non-profit fraternal organization, Royal Neighbors of America exists for the benefit of its members. It offers insurance products to fulfill a variety of needs for growth, savings, and protection. Members also receive valuable member benefits and can participate in volunteer activities through the organization s local chapters to make a difference in their communities. The organization s philanthropic efforts are dedicated to changing women s lives through its national programs and through the Royal Neighbors Foundation, a 501(c)(3) charity. Get to know us: Since 1895, Royal Neighbors of America has been dedicated to insuring lives, supporting women, and serving communities. We were founded by nine strong, independent, and visionary women who wanted to empower women and those they cared about. Through local chapters, our more than 225,000 members work together to direct our national resources to causes that make a difference in their communities. We began giving back as early as 1906 when we gave financial aid and hands-on assistance to victims of the San Francisco earthquake. More recently, our financial help has made a difference to those affected by natural disasters such as Hurricanes Hugo, Rita, and Katrina; the Parkersburg, IA, tornado; and the Midwest floods. In a crowded industry of look-alike insurance companies, one name stands out from the rest. Royal Neighbors of America is Insurance with a Difference SM.

32 Royal Neighbors of America (800) , Option 1 Form 2997-B; Rev