LIFE INSURANCE
TrueTerm
SMLife Insurance on the Customer’s Terms
FOR BROKER-DEALER OR AGENT USE ONLY FIN1924-3
What you’ll find inside . . .
• Product Highlights • Target Audience • Sales Tools • Product Details • Available Riders
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every step of the way, whether it’s learning about benefits of a product,
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Term insurance is one of the most affordable ways to provide life insurance
protection. TrueTerm blends affordability with features and benefits that customers
will appreciate and innovative pricing that is unique within the industry.
Hitting the
highlights.
TrueTerm is a great option for customers interested in affordable coverage that can help provide some security for their loved ones. When discussing the benefits of term life insurance, be sure to touch on the following selling points:
Affordable Option – TrueTerm is straightforward term life insurance that typically gives the customer the most insurance for his or her premium dollar.
Straightforward Coverage – The product is simple to understand, and the premium payments and death benefit are guaranteed for the term of the policy.1
Flexible – The customer can choose a level term period anywhere from 10 to 30 years while giving the customer the flexibility to add options to maximize coverage for the whole family.
Customized Protection – With the new Primary Insured Term Rider (PITR),2
TrueTerm can be customized with up to five optional ‘layers’ of protection. This allows customers to help meet specific shorter-term needs, such as housing expenses or college tuition. For each of these layers, the customer selects the coverage amount and term length which can often result in substantial savings when compared to a policy with an equivalent level death benefit. Term lengths for these layers can range from 10 through 20 years.
Conversion Privilege – Customers can convert their TrueTerm policies to permanent policies with the same face amount until year 10 or the policy anniversary following age 60, whichever is earlier. After the first policy year, they are also eligible for a conversion credit.3
The right
audience.
Customers who will benefit most from this product include:
Business owners needing to protect business assets, loans and other expenses.
Corporateemployees seeking to supplement a group policy with a portable personal policy for added protection.
Self-employed business owners looking for an affordable policy to cover multiple protection needs in one convenient policy.
Young adults just starting out looking for a quality, affordable starter policy who want to help provide security for their family’s future including
newlyweds, young parents and new homeowners.
FOR BROKER-DEALER OR AGENT USE ONLY
Tools you
can use.
ALNY offers tools that help you give customers a clear picture of what TrueTerm can do for them.
Illustration Software – Getting a quote is simple using the illustration software. Download your copy today at lblsales.com.
Marketing Materials – Customer materials including a product brochure, a fact card, and take-one cards are available to provide more ways for you to interact with your customers about TrueTerm. These pieces can be ordered at
FOR BROKER-DEALER OR AGENT USE ONLY
Flexible
Coverage
TrueTerm now allows customers to choose from 21 level term periods for base coverage anywhere from 10 to 30 years. But what if the customer doesn’t need the same level of insurance for the entire term period selected? Once the kids are grown and the customer reaches retirement, their financial needs will likely change. TrueTerm with Customized Protection can help.
With Customized Protection, customers have the ability to target specific needs with a face amount and term period specific to that situation. These targeted “layers” automatically expire as scheduled to give the customer the amount of coverage they want at different times of their life. It’s personalized protection to fit the customer’s changing stages of life in one convenient policy.
And TrueTerm’s Total Coverage Pricing works to lower the premium and save the customer even more. The premium for each layer of coverage is based on the rate band for the primary insured’s total coverage — even as the layers expire and the coverage declines.
The chart is based on a female, aged 44, with preferred rate class and $1 million rate band. The base policy premium includes the $75 policy fee with no additional policy fees for the PITRs. The face amounts were combined to determine the rate band. In this case, all face amounts together totaled $1.2 million. The death benefit can be used for any purpose. The needs used in this example are for illustrative purposes only.
Years 5 10 15 20 25
Annual Premium/ Cumulative Coverage
}
$1,636.00/ $1,200,000}
$1,440.00/ $1,000,000}
$1,140.00/ $750,000Housing expenses (rider)
$200,000
Business liabilities (rider)
$250,000
Income replacement (base)
$750,000
Customized Protection
Consider Janet, 44, a married entrepreneur with three different coverage needs.
• Income replacement to age 65 (21 years) with $750,000 of death benefit. • Business liabilities for another 18 years of $250,000.
• Housing expenses, with 14 years left on her 30 year loan, of $200,000.
In year one, Janet has total coverage of $1.2 M with an annual premium of $1,636.00. Once the additional layers of coverage have expired in year 19, the premium will also have dropped to $1,140.00. She has the amount of protection necessary for each stage of her life...and for the time period she chose. No more. No less.
Getting to
the specifics.
Term Lengths/Issue Ages
Issue ages range from age 18 to 68. Deviations may occur.*
*The issue age for specific term lengths may vary based on the level term period, gender, underwriting class, and total face amount. Refer to the illustration software to determine whether specific combinations of factors are allowed.
TERM POLICY ISSUE AGES AIR ISSUE AGES
$200,000 AND ABOVE BELOW $200,000 ALL AMOUNTS
10-year • 18-68 • 46-68 • 18-68
11-year • 18-68 • 46-68 • 18-68
12-year • 18-68 • 46-68 • 18-68
13-year • 18-67 • 46-67 • 18-67
14-year • 18-66 • 46-66 • 18-66
15-year • 18-65 • 46-65 • 18-65
16-year • 18-64 • 46-64 • 18-64
17-year • 18-63 • 46-63 • 18-63
18-year • 18-62 • 46-62 • 18-62
19-year • 18-61 • 46-61 • 18-61
20-year • 18-60 • 46-60 • 18-60
21-year • 18-59 • 46-59 • 18-59
22-year • 18-58 • 46-58 • 18-58
23-year • 18-57 • 46-57 • 18-57
24-year • 18-56 • 46-56 • 18-56
25-year • 18-55 • 46-55 • 18-55
26-year • 18-54 • 46-54 • 18-54
27-year • 18-52 • 46-52 • 18-52
28-year • 18-50 • 46-50 • 18-50
29-year • 18-50 • 46-50 • 18-50
Underwriting Classes
• Preferred Elite • Preferred
• Standard Select • Standard Nonsmoker • Preferred Smoker • Standard Smoker
Minimum Face Amount
• $200,000 for issue ages 18 - 45 • $50,000 for issue ages 46 and above
Face Amount Bands
• $50,000–$99,999 • $100,000–$199,999 • $200,000–$499,999 • $500,000–$999,999 • $1,000,000–$1,999,999 • $2,000,000–$4,999,999 • $5,000,000+
Premium Payment Options
• Monthly – Auto-Deduction • Quarterly • Quarterly – Auto-Deduction • Semiannually • Semiannually – Auto-Deduction • Annually • Annually – Auto-Deduction
Modal Factors
Policy Fee
• $75 (The policy fee is non-commissionable.)
Total Coverage Pricing
The rate per $1,000 for the base policy and all PITRs is determined using the following process:
1. Add up the face amount of the base policy and all PITRs. 2. Determine the face amount band from the total in step one.
3. Apply the face amount band from step two to the individual term periods for the base policy and all PITRs.
FREQUENCY DIRECT BILL AUTO-DEDUCTION
Semiannually .52 .51
Quarterly .27 .26
Riders for added protection.
2RIDER NUMBER ISSUE AGES ISSUE LIMITS FEES BENEFIT TO CUSTOMER
Accelerated Death Benefit Rider – Terminal Illness4 NYLU745 All Automatically available; customers must complete the
ADB disclosure form that accompanies the policy prior
to receiving rider benefits
If used, an interest discount and an
administrative fee will apply
Early payment of part of the death benefit if diagnosed with a
terminal illness; maximum of three payments for terminal illness; total payments can be no
more than the lesser of 80% of the death benefit or $250,000 (limit applies to all policies issued by us on the life of the
insured)
Accidental Death Benefit
Rider NYLU669 18–60
Minimum of $5,000; maximum of the lesser of $250,000 or total coverage on
the base insured; coverage terminates on the policy anniversary following the insured’s 70th birthday
Vary by issue age
An increased benefit if the insured’s death occurs due to
a covered accident
Additional Insured Rider (AIR) NYLU758 Same as base policy
Minimum of $50,000; only one additional insured per policy; conversion privileges
apply as long as the base policy remains in force; no conversion credit associated
with the additional insured
Vary by issue age, gender, level term period, underwriting class and face
amount
Coverage for two individuals under one term policy
Children’s Level Term
Rider NYLU668 18–64
Children covered must be ages 17 and under; sold in ½ units where ½ unit equals $2,500; minimum of ½ unit ($2,500);
maximum of 4 units ($20,000); can be added after
issue; not available on business-owned policies
$15 per ½ unit annually
Coverage for natural or legally adopted children and, in many
cases, stepchildren
RIDER NUMBER ISSUE AGES ISSUE LIMITS FEES BENEFIT TO CUSTOMER
Primary Insured Term
Rider (PIRT) NYLU785
Vary by issue term period
Minimum of $100,000; term periods from 10 - 20 years; duration limited to the lesser
of 20 years or attainment of age 70; term period selected
for each PITR must be less than the base plan; available
only at issue; rider automatically expires at the end of its term period; no ART
period; can be deleted or decreased after the first policy
year; unscheduled changes to the rider may result in a higher
rate; convertible to the earlier of 10 years or the anniversary
following age 60 to new permanent policy only; partial
conversions allowed but remaining amount is subject to
PITR minimum; conversion credit allowed Vary by issue age, gender, level term period, underwriting class and face
amount
Provides for additional coverage on the primary insured; allows the insured to customize their total coverage by choosing a different level term period for each PITR added to the base policy; up to five PITRs, each with their own term period and
face amount, may be added to the base policy
Waiver of Premium
Rider NYLU670 18–55
Maximum of $10,000; not available with annual premiums greater than $10,000; policy requirements
must be satisfied to confirm total disability; disability must
occur before rider coverage terminates on the policy anniversary following age 60
Vary by issue age
A premium waiver for the duration in which the insured is
totally disabled
Future policy
changes.
Convertibility
The policy can be converted to a permanent policy with the same face amount until year 10 or the policy anniversary following age 60, whichever is earlier. A conversion credit equal to the total first-year premium of the base term coverage is offered for conversions after the first policy year. Partial conversions are allowed, with a pro rata conversion credit based on the reduction in base coverage premium.3
Policy Reviews
Your customers’ situations will most likely change over the years, and their policies need to keep up. We recommend that you meet with them to review their policy every one to two years.
For TrueTerm customers, you may want to make a special note to meet with them prior to the end of the convertibility period to discuss whether switching to a permanent policy may be appropriate.
1 All guarantees are based on the claims-paying ability of Allstate Life Insurance Company of New York. 2 Please see riders for terms, conditions, and restrictions. Additional costs may apply.
3 Terms, limitations, and additional costs will apply.
4 A disclosure form must be completed prior to receiving benefits under this rider. An administrative expense will be charged if the benefit is used. Receipt of
accelerated benefits may be taxable. Tax laws relating to accelerated benefits are complex. Please consult a tax advisor. Receipt of accelerated benefits may also impact eligibility for public assistance programs.
Neither Allstate Life Insurance Company of New York nor its agents and representatives can give legal or tax advice.
TrueTermSM is a term life insurance policy issued by Allstate Life Insurance Company of New York, Hauppauge, NY, a wholly owned subsidiary of Allstate Life
Insurance Company, Northbrook, IL. TrueTermSM is available with contract NYLU757-1 and riders NYLU758, NYLU668, NYLU653, NYLU670, NYLU669, and
NYLU785. Policy issuance is subject to availability and qualifications. This policy has exclusions, limitations, and terms that may affect coverage, renewal, cancellation, termination, or other contractual rights and benefits.
© 2012 Allstate Insurance Company 7/12
FOR BROKER-DEALER OR AGENT USE ONLY – Not for public dissemination. May not be distributed, reprinted or shown to the public in oral, written or electronic
form as sales material. FIN1924-3
Not insured by any federal
government agency depositNot a credit union guaranteeNo bank or May go down in value Not FDIC, NCUA/
NCUSIF insured
