Junior Estate Builder Plan Documents:

(1)

For insurance producer use only – not for dissemination to the public. GCA07DVHH 8/10

Junior Estate Builder

Plan Documents:

• Positioning Points

• Issue Parameters

• FAQ’s

(2)

Positioning Points

Sales Sizzle

An easy and affordable way to help give a child or grandchild a financial foundation for his or her future and help guarantee their insurability for life.

Easy to obtain and offered to children from 14 days to 24 years of age.

Affordable Premiums

• $15,000 of coverage for $35 per year • $20,000 of coverage for $45 per year

The Benefit of Junior Estate Builder

The Junior Estate Builder plan offers term-life insurance for children; then at age 25, converts to a whole-life insurance policy. Two plans are offered: $15,000 of term-life insurance coverage or $20,000, both converting to comparable amounts of whole-life insurance.

Selling Points of Junior Estate Builder

• Can be used as a door opener for parents or grandparents with new children/grandchildren. • An extra sale when writing adult coverage. • Inexpensive coverage that is great starter insurance for young children or when they graduate from college and begin their careers. • Death benefit is guaranteed not to decrease. • If children have been declined for other life

plans, they may qualify since there is limited underwriting with the JEB and only a few general health questions.

• Term coverage automatically converts to whole-life with no underwriting.

• Guaranteed purchase option will allow additional whole-life coverage at 25, 28, and 31 without proving insurability.

(3)

Issue Parameters

Policy Restrictions

• If multiple applications for the same child are submitted, the total amount of Junior Estate Builder coverage applied for cannot exceed $50,000.

• All insured(s) must be US citizens or have a permanent resident status.

• Applications taken on children who are US citizens but residing outside the United States will not be accepted.

Underwriting

Question 1A – a YES answer will require additional underwriting review.

Question 1B – a YES answer will require additional underwriting review.

Question 2 – a YES answer will require additional underwriting review.

Coverage Type: Juvenile Term Life

Junior Estate Builder is a term-to-age policy that offers two plans of protection that automatically converts to whole life at age 25.

General Information

Issue Ages: 0-24

Policy Form: 20305 1/88 Application: 1174 8/96

Underwriting: Short form, 3 questions

Premium Payment Method: Annual Direct Bill

Two Plans of Coverage

Plan One – 20305

$35 annually

Provides $15,000 of term life insurance to age 25. Automatically continues at age 25 for $15,000 whole life insurance at an annual premium of $190 and begins to build cash values.

Plan Two – 20306

$45 annually

Provides $20,000 of term life insurance to age 25. Automatically continues at age 25 for $20,000 whole life insurance at an annual premium of $225 and begins to build cash values.

Benefit Purchase Option

At age 25, 28, and 31, the insured will have the option to purchase additional life insurance up to the amount of the original benefit amount. That means if the original amount was $20,000, the insured could add $20,000 at each option point, thus providing $80,000 of total life insurance.

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Junior Estate Builder

Issue Parameters

(cont’d)

43 17 18 40 16 15 37 15 12 74 35 3’ 8” 34 14 10 140 72 5’ 0’ 68 32 3’ 6” 31 13 8 128 66 4’ 10” 62 29 3’ 4” 28 12 6 118 61 4’ 8” 56 26 3’ 2” 25 11 5 109 56 4’ 6” 51 24 3’ 0” 22 10 4 100 81 4’ 4” 46 22 34” 19 9 3 91 46 4’ 2” 42 20 32” 16 8 2 84 42 4’ 0” 39 18 30” 13 M–7, F–6 1 80 38 3’ 10” 37 16 28” 11 M–6, F–5 ½ 0 Max. Min. Height Max. Min. Height Max. Min. Age (mos.) Ages 2 – 9 years Birth to 18 months of age

Minimum and Maximum Weights for Non-Medical Acceptance

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Junior Estate Builder

Issue Parameters

(cont’d)

220 130 6’ 1” 226 134 6’ 2” 233 138 6’ 3” 202 118 198 114 194 110 5’ 10” 208 122 204 118 5’ 11” 214 124 210 122 6’ 0” 172 98 168 94 164 90 5’ 5” 167 94 163 90 159 86 5’ 4” 240 142 6’ 4” 196 114 192 110 188 106 5’ 9” 190 110 186 106 182 102 5’ 8” 184 106 180 102 176 98 5’ 7” 178 102 174 98 170 94 5’ 6” 162 90 158 86 154 83 5’ 3” 158 86 153 83 149 80 5’ 2” 154 82 149 80 144 77 5’ 1” 150 79 145 76 140 74 5’ 0” 146 76 141 73 136 71 4’ 11” 143 74 138 71 132 68 4’ 10” 140 72 134 68 128 65 4’ 9” 138 70 131 66 124 62 4’ 8” 136 68 128 64 120 59 4’ 7” 132 66 124 61 116 56 4’ 6” 120 59 112 54 4’ 5” 116 57 108 52 4’ 4” 112 55 104 50 4’ 3” 108 53 100 48 4’ 2” 96 46 4’ 1” 92 44 4’ 0” Max. Min. Max. Min. Max. Min. Ages 16 - 24 Ages 14 - 15 Ages 10 - 13 Height

Minimum and Maximum Weights for Non-Medical Acceptance

BUILD TABLE for Children under age 25 (cont’d)

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FAQ’s

Does the juvenile and owner have to be an

American citizen or resident legal alien?

Yes.

If proposed insured is over 15-years old

and lives out of state, do they have to

sign the application?

Yes. This could possibly be accomplished at a time when the grandchild is visiting the

grandparent.

What is the chargeback policy?

Policy is prepaid annually. Commissions are paid as earned. There is no chargeback unless client exercises a free look option. In this case, the premium reversed and refunded to the insured.

The application asks if the “Automatic Premium Loan” is desired. What does this mean?

Answering YES to this question helps prevent unintentional lapse of the policy once the policy converts to whole life and begins building cash

Once converted to a whole life policy at

age 25, will the premiums remain the

same for life?

After conversion, the new whole life premiums will remain level for the life of the policy unless benefit amounts are increased.

Does the policy provide cash value after

each year in force?

The policy is term insurance until age 25 and has no cash value. When the policy becomes a whole life policy it begins to build value.

Can you switch the payor from the parent to a child once converted to the whole life plan?

Yes.

What is the premium when a policyholder elects to increase their coverage by $15,000 or $20,000 at the ages of 25, 28, and 31?

Rates will be based on whole life product availability and established rates at the time the increase option is exercised.

Can aunts and uncles apply for nieces and nephews?

Yes, but only if they have legal guardianship of the child.

What is the waiting period?

No waiting period applies to this product.

Are the agents required to collect premium with the application?

Yes. For an application to be considered in-force, the application must be submitted with the

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Junior Estate Builder

FAQ’s

(cont’d)

If you answer YES to the health

questions, will the applicant be

uninsurable?

• Question 1A – a YES answer will require additional Underwriting review

• Question 1B – a YES answer will require additional Underwriting review

• Question 2 – a YES answer will require additional Underwriting review

The last page of the application states “I

acknowledge that I received a copy of the

Notice to the Proposed Insured and the

Medical Information bureau Disclosure

Notice which is attached to this

application”, Where is the attached form?

This is an acknowledgement of the information contained in the “Authorization” section of the application. No additional forms are required.

Can someone pay the total amount rather

than year by year?

Yes. The client can prepay the premium. Excess premium will be credited each year on the anniversary date of the policy.

Can there be more than one beneficiary

on the policy?

Yes. You can simply add the beneficiaries name and relationship in the beneficiary box or just below. Make certain you include the desired % split for each beneficiary.

If the child becomes terminally ill before it

converts to whole life will they get the

benefit amount?

If death occurs the death benefit would be paid. This policy does not have a terminal illness rider and would not provide any benefit pre-death.

I have a 22-year old married applicant

that would like to purchase this product.

Is he/she eligible for coverage?

Yes. Marital status does not apply to this product.

What if the proposed insured is 24 years

and 11 months old?

The policy is issued on closest age. If the proposed insured is 24 years and 11 months old, he/she will have an effective age of 25 making them ineligible for coverage.

Once the insured turns 25, when does

the policy convert to whole life?

Following the policyholder’s 25th birthday, the policy will convert to whole life on the

anniversary of the policy.

What is an insurable interest?

Owners and beneficiaries must be insurable interests for the Junior Estate Builder product. An insurable interest is a parent, grandparent, great-grandparent, legal guardian, or sibling 18 years of age or older. Aunts/uncles are not allowed to be owners or beneficiaries on submitted applications, but they can pay for the policy.

What is the maximum benefit a child can

receive?

The maximum benefit amount per child is $50,000. If the benefit amount reaches $50,000, Kanawha will ask for physician statements.

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Junior Estate Builder

FAQ’s

(cont’d)

Q: If the insured chooses not to take the

additional insurance option at 25, can

they take advantage of the additional

insurance option at age 28?

Yes. However, they can only double the benefit instead of tripling it.

If a policy is paid in advance and the child

dies, will a refund of premium be given?

Yes.

If the owner of a policy dies can someone

else take it over?

Yes

Can grandparents purchase a policy for a

grandchild who resides in a state where

we don’t offer the plan?

No, We cannot sell the plan for a child that resides in a state where we (Kanawha Insurance Company) are not licensed to do business.

If the policy holder and the juvenile live in

2 different states, does the agent have to

be licensed in both states?

The agent needs to be licensed in the state where the application is signed and where the child resides.

Are there minimum and maximum

weights restrictions on a JEB policy?

Yes. A build chart has been placed in the Ops Manual.

If a JEB policy is converted to a whole life

policy at age 25 and the policy is

We don't have illustrations for this

product, and the values will vary

depending on the age at issue, but I

have attached the values for a $20,000

policy on a 12 year old male through age

45. See the below as an example:

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Junior Estate Builder

FAQ’s

(cont’d)

Will the policy payor receive any

notification in recurring years, that the

premium will be deducted from their

checking/savings account or will it

happen automatically?

JEB is annual bill only so the payor will receive an annual direct bill until the policy coverts to whole life at which time they will have the option to put the policy on monthly bank draft. Once on draft they will not receive notices the premium will just automatically draft on the selected date.

Should our agents enter height and

weight and not worry about the build

charts leaving the decision to the

underwriters?

Yes

Can a 22 year old purchase a policy for

themselves?

Yes.

What would the conversion rate be once

the policy converts to whole life at 25?

The new premium would be $190 annually for $15,000 and $225 annually for $20,000.

How much will they be earning when it

converts?

The cash value will begin to build between year 3 and 4 after conversion but will vary based on the age of the insured when the policy was issued.

What is the maximum benefit a child can

receive?

The maximum benefit amount per child is $50,000. If the benefit amount reaches $50,000, Kanawha will ask for physician statements.