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Do your clients have the
“new” term life insurance?
Did you know that 4 in 10 households without
any life insurance would have immediate trouble
paying living expenses if their primary wage earner
died? 1 It’s clear that there is a great need for life
insurance, but did you know that today’s term life
insurance may be very different from what your
clients are used to?
OLD Term Life Insurance
The old standard for term life insurance is what
you and your clients would expect — basic death
benefit protection and maybe an accelerated death
benefit endorsement (ADBE) for terminal illness.
NEW Term Life Insurance
New term life insurance is about offering more
value to your client for less, and may include:
Death benefit protection
Accelerated underwriting — faster, easier,
less invasive
Convertibility 2 options — easily convert to
a permanent policy
Lower rates — a potentially lower rate
than you’d expect
Living benefits — critical, chronic, and
terminal illness (24 month life expectancy 3 )
Living benefits may be the most important
aspect of new term life insurance.
A serious illness can affect anyone at any time,
and place additional strain on your client and their
family’s finances. Living benefits can help protect
against this financial risk by allowing your client to
access a portion of their death benefit while living
if they are diagnosed with a qualifying illness.
1. 2019 Insurance Barometer Study (Life Insurance and Market Research Association
[LIMRA] and Life Happens) 2. Subject to the terms of the policy. 3. Twelve month life
expectancy in Florida. 4. Source: Genworth 2017 Cost of Care Survey, June 2017.
Median cost is quoted. 5. Source: “Even Insured Patients Are Overwhelmed by
The Cost of Cancer Care” Forbes, August 10, 2017
Here are just some of the
potential costs your client
could expect to pay:
97,452
$
per year 4
Private room expense
in a nursing home
49,188
$
per year 4
Licensed home health
aide (non-Medicare
certified)
703
$
per month 5
Average out-of-pocket
expenses for cancer
patient
Accelerated Death Benefits are subject to eligibility requirements.
ADDvantage Term (policy form series LS174) and Accelerated Death Benefit Endorsement for Term Life for Critical, Chronic, and
Terminal Illness (form series LR508) are issued by North American Company for Life and Health Insurance, Administrative Office, One
Sammons Plaza, Sioux Falls, SD 57193. Products, features, endorsements, riders, and issue ages may not be available in all jurisdictions.
Limitations and restrictions may apply.
1154NM-1
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
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