Agenda
I. Management Introduction
II. Genesis Life Product Features
III. COF Basic Value Life Product Features
IV. Transition to Genesis Life V. Illustration Software
VI. LifePRO
Genesis Life
• Flagship participating WL product • $50,000 minimum face amount • Level premium
• Competitive premium rates and dividend scale
Basic Value Life
• Low face amount participating WL product • No premium flexibility
• Same premium rates as Genesis Life with modified dividend scale
Genesis Life combines the best features of
• Traditional Whole Life (strong guarantees) • Universal Life (flexibility)
Step 1 Start with a traditional participating whole life policy
• Level annual premium during coverage period
• Schedule of guaranteed cash values • Traditional dividend options
Step 2 Allow policy holders to create a
guaranteed limited payment policy by paying additional premium
Step 3 Create flexibility by allowing policy holders to:
• Adjust the premium up or down if needed
• Apply dividends to accelerate the process
• Face amounts segmented into premium paying (ordinary) and paid-up amounts
• Excess Premium Fund allows additional premium to pay-up ordinary insurance
• Additional Dividend Option referred to Internal Funding Dividend Option allows for dividend value to pay-up ordinary insurance
• On the policy’s issue date, the face amount will consist entirely of ordinary insurance
• Ordinary insurance will be converted to paid-up insurance on each anniversary based on the amount of premium paid in excess of the required premium during the year and the
amount of any dividend allocated to the internal paid-up insurance dividend option
• Issue ages: 0 – 85 (maturity age 121)
Minimum $50,000
$50,000 – Standard Non-Tobacco and $99,999 Standard Tobacco*
$100,000+ Super Preferred Non-Tobacco Preferred Non-Tobacco
Standard Non-Tobacco Preferred Tobacco* Standard Tobacco*
Note: No longer have “Select” underwriting class *Tobacco users: Rates begin at age 18
Table ratings and flat extras may be applied to “Standard.”
• More effective Cash Value development • Not committed to Limited Pay Premium
• More flexibility for paying additional premium • Can reduce required premium over time
Required Premium
• The minimum amount that the owner must pay for ordinary life insurance in force and any
premium-paying riders
• Based on ordinary face amount at the beginning of the year
Excess Premium
• Any premium paid in excess of the required premium
Planned Premium
• The amount the owner has elected to pay based on his or her goals
• This is the amount that will be billed • May be changed, subject to required
minimum premium
Policy fee
• $50 per year (fully commissionable)
Change in Premium Over Time
Genesis Life Traditional Whole Life
Change in Face Amount Over Time
(Guaranteed Values)Traditional Whole Life
• Increased cash values (current and guaranteed) • Policy becomes guaranteed paid-up before
maturity date
• Reduces overall outlay required
• Reduces required premium (flexibility to reduce premium in the future)
Modes
Policy premiums may be paid: • annually,
• semi-annually (0.520), • quarterly (0.265) or
• by monthly Pre-Authorized Check (0.0875)
Grace period
• The policy will remain in force during the 31 day grace period
Any required premium in default at the end of the grace
period may be paid by automatic premium loan subject to the following conditions:
1) The owner must make a written request for the
automatic premium loan option prior to the due date of the premium in default or elected on application at the time of issue.
2) Any dividends accumulated must be applied to pay the premium before a policy loan will be made.
3) The loan value must be sufficient to permit the premium loan.
Dividend Accumulation
• Leave dividends on deposit with COF to earn taxable interest
Dividends to Reduce Premium Payment
• Use dividends to pay part or all of (if sufficient) the policy premium
Cash
• Dividends paid in the form of a check
Paid-Up Additions
• Increase coverage by using dividends to purchase additional, paid-up life insurance
• Default option when the policyholder hasn’t made a selection
Internal Paid-Up Insurance
• Convert ordinary insurance to paid-up insurance
Policyholders may:
• surrender any portion of the paid-up life insurance for its cash value
• surrender any portion of the paid-up additional insurance for its cash value • request that any dividend
accumulations or excess premium balance be returned
• policy loan
Withdrawals
*Note: Decreases in the ordinary insurance
Beginning the second policy year, the policyholder may request a loan against the net cash value of the policy provided that the policy:
1. is in force and there are no premiums in default, and
2. is not in force as extended term insurance • LifePRO will calculate the proper amount when
quoting
• Loan interest rate
• 5% fixed loan rate with Direct Recognition Adjustment
Direct recognition
• Dividends will be adjusted for policy loans.
Whenever the outstanding loan balance equals or exceeds the maximum loan value, the policy will
terminate without value. The policy will not terminate until 31 days after the company notifies the
policyholder of the impending termination.
(Follow current company practice on over loaned policies.)
The death benefit is equal to:
1. the face amount of ordinary insurance; plus 2. the face amount of paid-up insurance; plus
– Paid-up base face value
– Paid-up additional insurance riders
– Paid-up additional insurance purchased through dividends
3. the net excess premium balance on the date of the insured’s death; plus
4. any remaining dividend accumulations; plus
5. any dividend credited at the time of the insured’s death; plus
(Continued)
6. the portion of any required premium paid for any period after the insured’s death; less
7. any outstanding policy loan balance; less
8. the part of any required premium in default for any period prior to the insured’s death
The net cash value of the policy is equal to:
1) the cash value of any ordinary life insurance in-force; plus 2) the cash value of any paid-up life insurance in-force; plus
• Paid-up base face value
• Paid-up additional insurance riders
• Paid-up additional insurance purchased through dividends
1) the net excess premium balance; plus
2) the amount of any unearned net premium; plus 3) any remaining dividend accumulations; plus 4) any dividends payable on the policy, less 5) any outstanding policy loan balance.
Cash Surrender Value
• The net cash value will be paid as of the default date
Paid-up Life Insurance
• The policy will remain in-force as paid-up life insurance and the ordinary face amount will be converted to paid-up life insurance by applying the ordinary life insurance cash value to the net single premium under the non-forfeiture basis of values • Default for rated policies
Extended Term Insurance
• The policy will remain in-force as extended term insurance The amount of the term insurance will be equal to:
1) the face amount of ordinary life insurance; plus 2) the face amount of paid-up life insurance; plus 3) any remaining dividend accumulations or paid-up
additional insurance paid amount; less 4) any outstanding loan balance
• The term period will be set so that the net single premium for the extended term insurance is equal to the cash surrender value
• Default for Standard classes
Accelerated Death Benefit Rider
• Allows a portion of the policy’s eligible death benefit to be accessed should the insured be diagnosed with a terminal illness with a life expectancy of 12 months or less2
Fraternal Legacy Benefit Rider
• Name a qualified Catholic beneficiary to receive an additional 5% of the insurance policy’s initial death benefit at no additional cost to premium
• May be spread across multiple, qualified Catholic charities3
1Not all riders are available in every state and some states vary the terms of certain riders. 2Various states have established different life
expectancy periods once the terminal illness has been diagnosed. Additional limitations and conditions may apply. A COF representative
Guaranteed Insurability Option
• A guaranteed insurability rider, also called a GI rider, is a life insurance rider which allows the owner of a life insurance policy to buy additional life insurance with no additional underwriting
Paid-up Additions Rider
• Permits the purchase of additional paid-up insurance • Two separate premium options are available: Single
Premium and Level Annual Premium
Waiver of Required Minimum Premium
• Waives the required minimum premium due for the policy and any eligible riders
Waiver of Specified Premium
• Waives a specified premium amount greater than the required premium
Issue Ages
• 0 – 85 ALB (age last birthday) Rate Classes
• Standard Non-Tobacco • Standard Tobacco
Face Amount
• $25,000 (New Underwriting) or
• Option Amount GIO (Guaranteed Insurability Option) Exercise/Conversions
Dividend Options • Cash
• Dividend Accumulation
• Dividends to Reduce Premium Payment • Paid-Up Additions
Note: 1st dividend paid on 10th Anniversary Policy Loans
• 5% fixed loan rate with Direct Recognition Adjustment
• Waiver of Premium (WP)
• Guaranteed Insurability Option (GIO) single • Single Paid-Up Additions (Exchanges only) • Accelerated Death Benefit Rider (ADB)
February 17, 2015
Genesis Life launch date
February 17 – May 15, 2015
• Forester Life available for any amount within
current limits
• Home Office accepts apps for Forester Life POSTMARKED through May 15, 2015
Mid April, 2015 until COF Basic Value Whole
Life is available
• Forester Life – only $25,000
• Once COF Basic Value Whole Life is
available, Forester Life will be discontinued
February 17 – June 30, 2015
• Apps for the following products will be accepted through APPS DATED June 30:
– 10-Pay Whole Life – 15-Pay Whole Life – 20-Pay Whole Life
July 1, 2015
COF will have the following products available:
• Genesis Life
• COF Basic Value Whole Life
– Special needs – Conversion
– GPO option for less than $25,000 or $25,000 – $49,999
• Questions? Contact the Home Office • Stay tuned for more details
