Policy Review

1
Policy Review

• Discover easy tips
• to boost your results

2
Disclosures

• Builder IUL is issued on policy form series
  LS161A or state variation Custom Accumulator III
  is issued on policy form series LS165B or state
  version Custom GrowthCV is issued on policy form
  series LS166 Custom Guarantee is issued on
  policy form series LS163A Custom TermGUL is
  issued on policy form series LS167 Guarantee
  Builder IUL is issued on policy form series
  LS164A Chronic Illness Accelerated Benefit Rider
  is issued on form series LR450A (Accelerated
  Benefit Rider for Continuous Confinement in MN)
  Paid Up Protection Rider is issued on form series
  LR-419A Premium Guarantee Rider is issued on
  form series LR452 Protected Pour In Rider is
  issued on form series LR418A by North American
  Company for Life and Health Insurance, Executive
  Office, Chicago, IL. Not all products, features,
  riders, endorsements or issue ages are available
  in all jurisdictions. Limitations and
  restrictions may apply.
• Standard Poor's, SP, SP 500,
  Standard Poors 500, 500 are trademarks of
  The McGraw-Hill Companies, Inc. and have been
  licensed for use by North American Company for
  Life and Health. Dow Jones and DOW JONES
  INDUSTRIAL AVERAGESM (DJIASM) COMPOSITE STOCK
  PRICE INDEX are service marks of Dow Jones
  Company, Inc. and have been licensed for use for
  certain purposes by North American Company for
  Life and Health. The Dow Jones EURO STOXX 50 is
  the intellectual property of (including
  registered trademarks) STOXX Limited, Zurich,
  Switzerland and/or Dow Jones Company, Inc., a
  Delaware corporation, New York, USA, (the
  "Licensors"), which is used under license. The
  securities based on the Index are in no way
  sponsored, endorsed, sold or promoted by the
  Licensors and neither of the Licensors shall have
  any liability with respect thereto.The
  NASDAQ-100, NASDAQ-100 INDEX and NASDAQ are
  registered marks of the NASDAQ Stock Market Inc.
  (which with its affiliates are the
  Corporations) and are licensed for use by North
  American Company for Life and Health. This
  product has not been passed on by the
  Corporations as to their legality or suitability.
  This product is not issued, endorsed, sold or
  promoted by the Corporations. THE CORPORATIONS
  MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH
  RESPECT TO THIS PRODUCT. THIS INDEX DOES NOT
  INCLUDE DIVIDENDS PAID BY THE UNDERLYING
  COMPANIES. The Builder IUL from North American
  Company for Life and Health Insurance is not
  sponsored, endorsed, sold or promoted by Standard
  Poors, Dow Jones or NASDAQ and Standard
  Poors, Dow Jones and NASDAQ make no
  representation regarding the advisability of
  purchasing this contract or investing in this
  product.
• Index Universal Life products are not an
  investment in the market or in the applicable
  index and are subject to all policy fees and
  charges normally associated with most universal
  life insurance.
• A conditionally guaranteed interest bonus may be
  earned when the current interest rate exceeds the
  guaranteed interest rate. For Custom GrowthCV,
  current bonus rate is 1 interest applied in
  years 11-20 and 1.15 in years 21 and thereafter.
  For Custom TermGUL, the current interest bonus
  rates are 1.0 in years 11 and thereafter. The
  Interest Bonus percentages are not guaranteed and
  subject to change however once a policy is
  issued, the percentage will not change. Interest
  bonus is not applied to loaned funds. Not
  available in Texas. North Americans illustration
  software allows you to illustrate a case with or
  without bonus interest.
• Table shaving is available for policies that
  include the Waiver of Surrender Charge Option.
  When a person applies for life insurance
  coverage, his health is evaluated and a
  corresponding underwriting rating is applied.
  Custom GrowthCVs policy shaving feature allows
  certain substandard underwriting rates, known as
  table ratings, to be improved to a standard
  rating. A standard rating generally indicated
  average health and involves a lower life
  insurance premium than do substandard ratings.
  Qualifying rated cases through Table 4 will be
  classified as Standard. Qualifying cases include
  policies up to 5 million for ages 0-75. This
  does not apply beyond Table 4 and cannot be used
  to move a proposed insured into one of the
  Preferred classes.
• A conditionally guaranteed Premium Bonus will be
  added to the account value for policies that
  persist beyond 10 years. Money will be paid in
  the form of interest credited to the account
  value. The bonus is added as an interest credit
  to the account value at the beginning of policy
  years 11-15. To calculate the Premium Bonus, we
  first determine the average net premium. The
  average net premium is equal to the sum of the
  (total premiums paid less withdrawals taken in
  the first 10 years less the debt at the end of
  the 10th policy year) divided by 10. The Premium
  Bonus is the lesser of the average net premium
  and 120 of the commissionable target premium.
  The Premium Bonus is spread out over five years
  (20 paid annually in years 11-15). The Premium
  Bonus feature is only available if a) the policy
  is in effect b) the company declares a current
  interest rate that exceeds the 3 guaranteed
  interest rate and c) the current cost of
  insurance rates are less than guaranteed maximum
  cost of insurance rates shown in the Schedule of
  Policy Benefits. The amount of the Premium Bonus
  will be the lesser of (a) The sum of total
  premiums paid in the first 10 Policy Years, less
  withdrawals and policy debt, divided by 10 or
  (b) 120 of the initial commissionable target
  premium.

3
Quick Easy Results

• Policy Review will help you
• Get more sales without more clients
• Get life sales from those who arent life clients
• Uncover additional needs
• Get more referrals
• MAKE MORE MONEY

4
Target Client Profile

• Value your opinion
• Have existing permanent life insurance
• Seek and desire superior performance
• and may
• Have had a life changing event
• Be nervous about their policy performance
• Want improved guarantees

5
Life Insurance Policy Review

• Look to improve clients situation through
• Lower cost for same coverage
• More coverage for same premium
• Improved Death Benefit Guarantees
• Enhanced policy performance
• Tips
• Identify policy goal
• Discover new sales opportunities
• Beat their expectations (WOW)

6
Policy Review sample case 1

• Age 57 male
• Whole life policy of 50,000 from 1981
• 595/yr premium
• 15,300 cash value
• Guaranteed to endow at age 100

Preferred NT rate class.
7
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value
Death Benefit
Cash Value Growth
8
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value 0 premium Guar. DB to age 101 (1035 only)
Death Benefit
Cash Value Growth
9
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value 0 premium Guar. DB to age 101 (1035 only) 62/yr premium Guar. DB to age 120
Death Benefit
Cash Value Growth Proj. 24,502 at age 73 Proj. 127,712 at age 100
10
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value 0 premium Guar. DB to age 101 (1035 only) 62/yr premium Guar. DB to age 120
Death Benefit 50,000 117,730 (guarantees to age 100) (premium 595/yr)
Cash Value Growth
11
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value 0 premium Guar. DB to age 101 (1035 only) 62/yr premium Guar. DB to age 120
Death Benefit 50,000 117,730 (Guar. to age 100) (premium 595/yr) 88,965 (Guar. to age 120) (premium 595/yr)
Cash Value Growth 26,724 projected at age 73
12
Sample Case 1 (Guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 595/yr 15,300 Surrender Value 0 premium Guar. DB to age 101 (1035 only) 62/yr premium Guar. DB to age 120
Death Benefit 50,000 117,730 (premium 595/yr) (guarantees to age 100) 88,965 (Guar. to age 120) (premium 595/yr)
Cash Value Growth (50,000 death benefit 595 annual premium) 39,375 projected at age 73 219,815 projected at age 100 49,006 projected at age 73 292,875 projected at age 100
13
Sample Case 2

• Client Male age 47
• Existing UL with performance issues
• 250,000 death benefit
• 1,500 annual premium
• 17,500 cash surrender value

Super preferred rate class.
14
Sample Case 2 (guarantees)
Current Custom Guarantee (guarantee DB) Custom TermGUL (with premium guar rider) Guarantee Builder (guarantee IUL with cash)
Lower Cost 1500/yr 17,500 1035 250k DB 1,000/yr premium (Guar. DB to age 100) 1,190 premium (Guar. DB to age 100)
Death Benefit 1500/yr 17,500 1035 250k DB 307,153 (guar. DB to age 100) (28,139 CV age 65) 289,914 (guar. DB to age 100) (41,373 CV age 65)
Cash Value Growth 1500/yr 17,500 1035 250k DB 49,383 projected at age 65 379,322 projected at age 100 73,243 projected at age 65 1,110,210 projected at age 100
15

• Different Clients
• Different Objectives

16
Sample Case 2 (performance)
Current Custom TermGUL (low-cost with cash) Builder IUL (IUL with cash)
Lower Cost 1500/yr 17,500 1035 250k DB
Death Benefit
Cash Value Growth
17
Sample Case 2 (performance)
Current Custom TermGUL (low-cost with cash) Builder IUL (IUL with cash)
Lower Cost 1500/yr 17,500 1035 250k DB 485/yr 394/yr
Death Benefit
Cash Value Growth
18
Sample Case 2 (performance)
Current Custom TermGUL (low-cost with cash) Builder IUL (IUL with cash)
Lower Cost 1500/yr 17,500 1035 250k DB 485/yr 394/yr
Death Benefit 1500/yr 17,500 1035 250k DB 412,379 (1 CV age 100) 420,493 (1 CV age 100)
Cash Value Growth
19
Sample Case 2 (performance)
Current Custom TermGUL (low-cost with cash) Builder IUL (IUL with cash)
Lower Cost 1500/yr 17,500 1035 250k DB 485/yr 44,590 (proj. CV at age 65) 394/yr 38,571 (proj. CV at age 65)
Death Benefit 1500/yr 17,500 1035 250k DB 412,379 (1 CV age 100) 420,493 (1 CV age 100)
Cash Value Growth 1500/yr 17,500 1035 250k DB 78,458 (proj. CV age 65) 898,576 (proj. CV age 100) 82,234 (proj. CV age 65) 1,300,379 (proj. CV age 100)
20
Objections

• Access to cash value/1035
• New surrender charges
• Underwriting and health concerns

21
Custom GrowthCV
Table Shave
Interest rate and premium bonus
Waiver of Surrender Charge Rider
22

• Policy Review is
• an OPPORTUNITY to help your clients better their
  life insurance coverage.

23
Target Client Profile

• Value your opinion
• Have existing permanent life insurance
• Seek and desire superior performance
• and may
• Have had a life changing event
• Be nervous about their policy performance
• Want improved guarantees

24
Why North American?

• Strong Financials
• Strong Ratings
• Broad Competitive Portfolio
• Access to the Home Office
• Sales Support
• Underwriting

25
Ownership/Stability

• Private ownership allows us to focus on long-term
  results and makes us less susceptible to the
  short-term earnings pressures and expectations of
  Wall Street.

26
North Americans Products

• Meeting your needs through
• Competitive pricing
• Fantastic, flexible guarantees
• Superior features

27
Custom Guarantee

• 50,000 minimum Death Benefit on all rate classes
• 20 table ratings
• Broad, attainable rate classes

28
Custom TermGULsm

• Conditionally Guaranteed Interest Bonus
• 1 in years 112
• Net zero cost loan on full loan value (yrs 11)3
• Competitive pricing for non-guaranteed coverage
• Optional Premium Guarantee Rider

29
Custom GrowthCV sm

• Conditionally Guaranteed Interest Bonus
• 1 in years 11-20
• 1.15 in years 21
• Net zero cost loan on full loan value (yrs 6)
• Waiver of Surrender Charge option
• Table shaving option
• Conditionally Guaranteed Premium bonus years 11-15

30
Guarantee Builder IUL
Indexed Universal Life with guaranteed death
benefit accumulation potential

• More index options and crediting methods than
  most competitors
• Annual selections with annual reset
• Paid up protection rider
• 50,000 minimum face (even with super preferred)
• No money required in fixed account

31
Builder IUL Indexed UL up to age 120

• Issue ages 15 days Age 80
• Minimum Face 25,000 (with super preferred
  available)
• No Lapse Guarantee Period
• 0-70 20 yrs
• 71 10 yrs
• Variable Loans
• Paid up protection rider
• CVAT or GPT

32
Chronic Illness Accelerated Benefit Rider (CIABR)

• No additional cost at issue
• No additional underwriting requirements
• Automatic at issue
• Accelerated Benefits Summary and Disclosure
  Statement (L-3178) with application
• Available on new Universal Life sales
• Up to age 75
• Up to table 4
• Available for conversions with satisfactory
  evidence of insurability

33
Qualification

• Permanently unable to perform 2 of the 6
  Activities of Daily Living (ADLs ) or severe
  cognitive impairment requiring substantial
  supervision
• Bathing
• Continence
• Dressing
• Eating
• Toileting
• Transferring
• Physician certification of chronic illness.
• 90 day elimination period
• Complete election of benefits form (L-3180)

34
Benefits

• One election every 12 months
• Maximum per election is lesser of 24 of death
  benefit or 240,000
• Minimum per election is lesser of 5 or 75,000
• 200 administration fee per election (may vary
  per state)

35
Hands-on illustrations
36
Quick Easy Results

• Policy Review will help you
• Get more sales without more clients
• Get life sales from those who arent life clients
• Uncover additional needs
• Get more referrals
• MAKE MORE MONEY

37
Follow Up Process

• Keep and expand your list
• Sales Support will help
• Product
• Sales Ideas
• Software
• Case design
• Take action NOW

38
Sales Support800-800-3656 ext.
10411salessupport_at_nacolah.com