Fidelity & Guaranty Life Fixed Indexed Universal Life!photos.naaleads.com/email_pics/NAASept.pdf ·...

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Fidelity & Guaranty LifeFixed Indexed Universal Life!

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

Agenda

1. FGL Annuity Snapshot

2. Uses and Benefits of FIUL

3. Markets for FIUL

4. FGL Life Products

5. Fidelity & Guaranty Life

12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.2

FGLANNUITY PRODUCT SNAPSHOT

312-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

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Prosperity Elite

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

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ImpairmentProtection

IncomeProtection

Wealth TransferProtection

AccumulationProtection

Prosperity Elite


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3 Year Impairment

Wait

7.00% Roll-upWith Restart

Lump Sum DB

Improved Accumulation,

Caps

Prosperity Elite Enhancements


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Protection Package: 110 bps

NO Riders: No Cost

Enhancement Package: 40 bps

ACCUMULATION

VESTED BONUSES

5% SIMPLE DEATH BENEFIT

Enhanced Vested Bonuses & DB’s

INCOME BENEFIT

IMPAIRMENT PROTECTION

Build Your Own Protection

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Introducing Simplicity Elite


In-Force Fixed Annuity Marketplace

• $467 Billion Fixed-Rate Annuities in force 12-31-2012

• An estimated 50% or more NOW have 0% surrender charge

• Roughly $2 to $4 billion have charges that expire every month?

999

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Defining a New Marketplace


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• Some Don’t Like

• Some Don’t Take the Time

• Some Can’t Understand

Defining a New Marketplace


111111 13-116



121212 13-116FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC


10% simple for up to 10 years

Double incomewhile impaired

Premium growing at 3% simple

Bonus on 10 and 14 year, 2.5% fixed

interest


USES AND BENEFITS OFFIUL


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Uses and Benefits of FIUL

Wealth Transfer(Income Tax Free Death Benefit)

Accumulation(Tax Deferred Cash Accumulation)

Protection(Living Benefits)

Income(Tax Free Income)


MARKETS FOR FIUL


The Ideal Client Profile

When selling Fixed Indexed Universal Life it is important to understand who fits the profile as an ideal client. The ideal client is someone who…

- Needs affordable death benefit protection with strong cash value accumulation potential

- Wants built-in product flexibility to better accommodate changing financial conditions

- Likes the opportunity for higher potential gains tied to index linked returns

- Doesn’t like the volatility and risks associated with index funds

- Wants downside protection in years of negative returns


FGL LIFE PRODUCTS


FG Life Products

18(Formerly OMLife-Choice)


FG Life-Gold

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The FG Life-Gold offers a new and exciting index feature by offering you a Gold Option! In addition to the gold option we also offer the S&P 500 option with the ability to blend the two. Performs well in the income and cash accumulation marketplace, also has competitive caps, along with two years to collect first-year commissions.


FG Life-Choice II

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The FG Life-Choice II is strongest in the death benefit sale, and is used as a term alternative. The choice II has strong cash accumulation because it offers NO PER THOUSAND CHARGES. Also offers competitive caps, along with two years to collect first-year commissions.


FG Life-Elite II

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The FG Life-Elite II is a strong tax-free income product because it offers a maximum guaranteed variable loan rate of 5%, along with high caps and high target premiums!


Index Features:

FG Life-Gold FG Life-Choice II FG Life Elite II

Interest Crediting Options*

Gold Option

S&P 500 Option

Fixed Account Option

Any combination of all interest crediting options

S&P 500 Option



S&P 500 Option



Crediting Methodology

Annual Point-to-Point ResetAnnual Point-to-Point Reset

Monthly Point-to-Point Reset

Annual Point-to-Point Reset

Monthly Point-to-Point Reset

Participation Rate 100% Guaranteed (in the indexing formula)100% and 140% Guaranteed (in the

indexing formula)100% and 140% Guaranteed (in the

indexing formula)

Cap Currently 13% on Gold/ 13% on S&P 500Currently 10.5% on 100% par/ 9% on

140% par/ 4% on MPTPCurrently 15.25% on 100% par/ 12.25% on

140% par/ 5.5% on MPTP

Guaranteed Minimum Interest Rate

.25% .25% .25%

Fixed Account Currently 4.5% Currently 4.25% Currently 5.%

*Subject to state availability. Certain restrictions may apply. 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.22

Product Features:

FG Life-Gold FG Life-Choice II FG Life-Elite II

Minimum Face Amount

$100,000 $100,000 $100,000

Issue Ages 0-85 (age last birthday) 0-80 (age last birthday) 0-80 (age last birthday)

Surrender Charge Period

15 years 15 years 15 years

Underwriting Classes

Preferred Nontobacco, Standard Nontobacco, Preferred Tobacco, Standard

Tobacco


Tobacco


Tobacco

Key Features

(May not be available in all states)

Surrender Charge Waiver on Excess Premium

Over Loan Protection

Primary Insured Level Term

Ultimate Protection Rider

Unique Living Benefit Riders

Surrender Charge Waiver on Excess Premium









Loan Options

(May not be available in all states)

Variable Loan Option

• Max rate of 5.5%

Fixed Loan Option

• Years 1-10 – 2% net

• Years 10+ – 0% net cost


• Max rate of 6.5%

Fixed Loan Option

• Years 1-10 – 2% net



• Max rate of 5%

Fixed Loan Option

• Years 1-10 – 2% net


23 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

Living Benefits

• Accelerated Benefit for Critical Illness – Up to 100% of the death benefit of the insured if the insured suffers a critical condition (heart attack, stroke, cancer etc)*

• Accelerated Benefit for Terminal Illness – Up to 100% of the death benefit if the insured is diagnosed with a terminal illness and has an expected life expectancy of less than 24 months*

• Over Loan Protection Rider – Prevents the life insurance contract from lapsing as a result of outstanding loans

• Waiver of Monthly Deduction Rider – Keeps policy in force by waiving the monthly charges should the insured become totally disabled for longer than 6 months

*Not to exceed $500,000 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.24

Annual Point to Point

25 FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

JAN 15S&P 1000

FEB 15S&P 1015

+1.5

MAR 15S&P 1040

+2.46

APR 15S&P 1000

-4

MAY 15S&P 1075

+5

JUN 15S&P 1080

+.47

JUL 15S&P 1100

+1.85AUG 15

S&P 1070

-2.73

SEPT 15S&P 1090

+1.85

OCT 15S&P 1110

+1.83

NOV 15S&P 1130

+1.80

DEC 15S&P 1100

-2.65

JAN 15S&P1075

-2.27TOTAL INDEX CREDIT 7.5%

1075-1000=75; 75/1000 = .075

Monthly Point-to-Point

26FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

JAN 15S&P 1000

FEB 15S&P 1015

+1.5

MAR 15S&P 1040

+2.46

APR 15S&P 1000

-4

MAY 15S&P 1075

+7.5+5

JUN 15S&P 1080

+.47

JUL 15S&P 1100

+1.85AUG 15

S&P 1070

-2.73

SEPT 15S&P 1090

+1.85

OCT 15S&P 1110

+1.83

NOV 15S&P 1130

+1.80

DEC 15S&P 1100

-2.65

JAN 15S&P 1075

-2.27TOTAL INDEX CREDIT 5.11%

Index Credit = 1.5+2.45-4+5+.47+1.85-2.73+1.85+1.83+1.8-2.65-2.27 = 5.11

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Current Illustrative Interest Rates for FG Life-Gold• 8.07% on Gold Interest Crediting Option (100% Par/13% Cap)

• 7.74% on S&P 500 Interest Crediting Option (100% Par/13% Cap)

• 4.50% on Fixed Account Option

Current Illustrative Interest Rates for FG Life-Choice II• 6.70% on 100% Participation Rate Strategy (10.5% Cap)

• 6.26% on 140% Participation Rate Strategy (9% Cap)

• 7.19% on the Monthly PT-to-PT Strategy (4% Cap)

• 4.00% on Fixed Option

Current Illustrative Interest Rates for FG Life-Elite II• 8.47% on 100% Participation Rate Strategy (15.25% Cap)

• 8.12% on 140% Participation Rate Strategy (12.25% Cap)

• 8.89% on the Monthly PT-to-PT Strategy (5.5% Cap)

• 4.50% on Fixed Option

Current Illustrative Rates


Minimum Guaranteed Interest Rate – .25% on all Participation Rate Strategies

Recap

The FG Life Advantage!

• Unique and Dynamic Index Crediting Strategies

• Living benefit riders

• Maximum guaranteed variable loan rates!

• A .25% minimum guaranteed interest rate in down years

• Competitive target premiums


WHYFIDELITY & GUARANTY LIFE


Fidelity & Guaranty Life Advantage

Did You Know That … Fidelity & Guaranty Life:

• Has 3 of the top selling Fixed Indexed Universal Life products in the marketplace with the FG Life-Choice II, FG Life-Elite II, and the FG-Life Gold!!

• Brand new IUL iPad App, and Annuity iPad App!

• Has an average underwriting time service of 7-10 days on In Good Order life applications!!

• Has a dedicated Case Management Unit that works directly with producers to help get cases through the system!!

• Has a Platinum Life Case Unit to handle large premium cases and very competitive Foreign National Underwriting Guidelines!!

• Pays commissions weekly and will advance up to $3,500 per case on approved producers!!

• $90,000 of life tap to qualify for Power Agent Program!!

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11-18112-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

iPad App

How to get the app?

Go to iTunes app store and search “FGL” or “Pathfinder”


iPad App

What can the app do?

Products Available: FG Life-Elite II, FG Life-Choice II, FG Life-Gold coming soon.

Index Options Available: APTP 100% Participation, no blending.

Other Options:

– Illustrative rate - 3.5% or maximum available.

– Preferred NT/T, Standard NT/T; no table ratings.

– State.

– Agent and client information.

Solves:

– Minimum and Target Premium.

– Maximum accumulation then withdrawal using Option A

– Maximum accumulation then withdrawal using Option B then loans with Option A.

Illustration may be used when submitting application.

FGL iPad app training


New Business Process Flow

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Policy Assembly/Mail

Same day

USPS – 4 days

Large Case - Overnight

Underwriting (Large Case/Full)

8 9

Agent to MGA to FGLife (Service Center) or Agent to

FGLife (Service Center)

Application received (Fax/Mail/IMAGE)

Data Entry:

Large Case – 1 day

Full Underwriting – 2 days

Verification

DECISION:

As Applied For/Decline/Other

than Applied for/Incomplete

Policy Issue:

Large Case – 1 day

Full Underwriting – 2 days

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3

45

6

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Underwriting Guidelines


Power Agent


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Power Agent

YearQualification Level Credit Amount

2009 $120,000 $2,000

2010 $120,000 $2,000

2011 $90,000 $2,000

2012 $80,000 TBD*

FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.36

*2012 amount to be determined in 2013

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The POWER of Compounding

Power Agent Program

Total Contribution = $12,000

$2,000

$2,000

$2,000

$2,000

$2,000

$4,000 $6,000

Qualifying Year 1

2009

Qualifying Year 2

2010

Qualifying Year 3

2011

$2,000

FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC

2009

2010

2011

Total

$2,000


Who to Contact


Life Questions:Ryan [email protected]

Annuity Questions:Ryan [email protected]

The End

Thank You!


Disclosures

Policies issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD.

Fidelity & Guaranty Life is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York and, in New York only, Fidelity & Guaranty Life Insurance Company of New York. Each Fidelity & Guaranty Life Insurance Company, is solely responsible for its contractual commitments

Optional provisions and riders may have limitations, restrictions and additional charges. Subject to state availability. Certain restrictions may apply.

This document is not a legal contract. For the exact terms and conditions, please refer to the life insurance policy.

Information provided regarding tax or estate planning should not be considered tax or legal advice. Clients should consult their own tax professional or attorney regarding their unique situation.

“S&P® ” is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity & Guaranty Life Insurance Company. Standard & Poor’s does not sponsor, endorse, promote, or make any representation regarding the advisability of purchasing the contract.

Indexed interest rates are subject to a cap. Caps are subject to change at the discretion of Fidelity & Guaranty Life Insurance Company.

Issuance of the life insurance policy depends on answers to health questions in the application.

Surrender charges may apply to partial and full surrenders. Surrenders may be taxable and may be subject to penalties prior to age 59½.

Surrenders and loans may reduce available death benefit. Surrenders beyond basis may be taxable income. Excessive and unpaid loans may reduce policy value and may cause the policy to lapse.

The Power Agent Program is a deferred bonus compensation plan for eligible appointed agents of Fidelity & Guaranty Life Insurance Company. Terms are stated in the Power Agent plan document, which Fidelity & Guaranty Life may amend, limit or terminate at any time.


Fidelity & Guaranty Life Fixed Indexed Universal Life!photos.naaleads.com/email_pics/NAASept.pdf ·...

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