GBU Life’s New Future Flex Preferred Annuity Training
Future Flex Preferred Series
Introducing the following new products:
1. Future Flex Preferred 5 & 8
2. Future Flex Preferred Classic
3. Future Flex Preferred SPIA
Future Flex Preferred Series
The new products offer alignment with the MYGA to simplify our story and servicing:
1. Owner Driven
2. Issue and Maturity Ages
3. Joint Ownership
4. Free withdrawal
5. Free look provision
6. Living Benefits
7. Application and available states
Future Flex Preferred 5 & 8
Future Flex Preferred
Flexible Premium Deferred Annuity (FPDA)
This flexible premium deferred annuity is an annuity that does not require a large lump sum premium. While most annuities only allow for a single payment, this flexible product provides the choice of making just one contribution or a series of payments— whichever works best for the member.
Additional premiums do not start a new surrender period
Our product also has several enhanced living benefit riders, which allows for additional liquidity under certain conditions.
Future Flex Preferred 5 & 8 Contract Information
Owner Driven Contract
Qualified & Non-Qualified
Joint ownership allowed on non-qualified accounts with a spouse as the joint owner only. Each owner must also be an annuitant, unless there is a non-person entity owner. Also each spouse must be the beneficiary of the other.
Max Issue Age: 95
Maturity Date: age 115
Owner Driven Contract
• The owner of the annuity contract is the person who pays the initial premium to the insurance company and has the authority to make withdrawals, change the beneficiaries named in the contract and terminate the annuity. The annuitant is the person whose life determines the annuity payouts.
• An owner-driven contract terminates upon the death of the owner and the death benefit is paid directly to the designated beneficiary. An annuitant-driven contract terminates upon the death of the annuitant.
Future Flex Preferred Contract Information
Min Deposit: $1,000 or $10,000 on the 5 & 8 respectively
Max Deposit: $3,000,000 (W/O Approval)
Free Look Period: 10 days, unless it is a replacement, then 30 days
Subsequent Deposit: up to a maximum of $1,000,000 respectively in each contract year without re-starting surrender charges. After surrender period contract can remain open. Statements will remain quarterly
Free Withdrawal Provision
In all contract years, including the first year of the contract, 10% of the account value. If no withdrawal is taken in a year, member may take out a max of 20% the next year
Interest may be taken, but it is not in addition to the 10% and is calculated as part of the total 10%
For qualified money, RMDs are permitted, even in excess of the 10%. Other than systematic withdrawals of interest there is a limit of two withdrawals per year for a min amount of $500.
Surrender Charges
• Future Flex Preferred 5 • Future Flex Preferred 8 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 6% 5% 5% 4% 3% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 7% 7% 6% 6% 5% 4% 3% 2%
Death Benefit
The death benefit is equal to: • the accumulation value on the date of death or • the minimum nonforfeiture value as of the date of death (the regulatory guaranteed minimum); whichever is greater
Death Benefit Payout
Death of the Owner:
• Owner dies before the maturity date or
• Owner is a non-natural owner (corporation or trust) and any Annuitant dies before the maturity date
The Death Benefit will be paid to
• The joint owner, if any because of beneficiary requirement; otherwise
• The beneficiary if living; otherwise
• The estate, if a natural owner; otherwise
• The annuitant’s estate, if a non-natural owner
Annuity Payout Options
• The contract owner may choose to annuitize the contract value into an annuity payment after the initial guaranteed term of one year. The amount use for the annuitization option is the account value, with no surrender charge applied. The options available are:
• Period Certain 5/10/15/20/25
• Life Income
• Life Income with Period Certain
• Life Income with Installment Refund
• Joint & Survivor Life Income
• Joint & Survivor Life Income With Period Certain
• Joint & Reduced Survivor Life Income
• Joint & Reduced Survivor Life Income with Certain Period
• Joint & Survivor Life Income with Installment Refund
• Lump Sum
Waiver of Surrender Charges -
Living Benefits Activities of Daily living and Severe Cognitive Impairment Benefit
Waiver:
• 2 Activities of Daily LivingBathing, Continence, Dressing, Eating, Toileting and Transferring (moving in and of bed, chair etc.)
Critical Illness Benefit Waiver
• Critical Illness-Cancer, end state renal failure, heart attack and stroke
Waiver of Surrender Charges –Living Benefits
Nursing Home Confinement
Home Health Care Benefit Waiver
• Nursing Home-A facility or part of a facility (such as a hospital or other clinical institution that:
1.Has as its main function providing skilled, intermediate, or custodial care;
2.Is operated and licensed as a skilled nursing home or intermediate care facility according to
3.the laws of the state in which it is doing business;
4.Provides 24-hour per day nursing care to at least three persons by, or supervised by, a Nurse on duty or on call at all times;
5.Is supervised by a Physician; and
6.Keeps an ongoing medical record of each patient in accordance with generally accepted professional standards and practices.
• Home Health Care – Skilled Nursing or other professional medical services in your residence, under the supervision of a physician, including, but not limited to:
1.Part-time intermittent skilled nursing services
2.Home health aide services
3.Physical Therapy
4.Occupational Therapy
5.Speech Therapy or audiology services
6.Medical social services
Interest Rates
Banding Minimum up to $24,999
$25,000 to $99,999
$100,000+
Rate increases the day after monthiversary following account value hitting higher band. Rate decreases the day after withdrawal causes account to go below band
Minimum Guarantees
• The minimum guaranteed rates will remain 1.65% and 2.00% respectively for the Future Flex Preferred 5 & 8
Renewal of Policy
• The Future Flex Preferred Series product does not automatically renew. Members can remain in the contract for as long as they desire after the surrender charge period ends
• Those with older contracts that would like to move to the new product would get the current rate offering for the band they are in. Distribution partners receive reduced commissions for these cases.
Future Flex Preferred
• Flexible Premium – no add’l surrender time
• One Combined Application with MYGA
• First Year Rate Guaranteed
• Years offered 5 & 8 year options
• 10% Free withdrawal with a 20% rollup
• Owner Driven Contract
• Joint Owners available on NQ accounts
• Min-Max $1,000/$10,000-$3M
• Max Issue age-95
• Free Look: 10 days unless replacement up to 30 days
• Waiver of Surrender Charges (Nursing Home, Critical Illness, Activities of Daily Living, Cognitive Impairment
• Minimum Guaranteed Rate 1.65% and 2.0% respectively
Old Preferred
• Flexible Premium – no add’l surrender time
• Old Application
• First Year Rate Guaranteed
• Years offered 5 & 8
• Free withdrawal interest + 10%
• Annuitant-Driven Contract
• No Joint ownership
• Min-Max $500-$3M
• Max Issue age-90
• Free Look: 45 Days
• Waiver of Surrender Charges – annual 20% additional access if confined to a nursing home
• Minimum Guaranteed Rate1.65% and 2.0% respectively
THANK YOU
Future Flex Preferred Annuity Training
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