Asset
Asset Protection Using the NGL Funeral Expense Trust
The Process of NGL’s Irrevocable Trusts
Advantages of Using Life Insurance in Combination with a NGL Trust
Typical End-of-Life Expenses
NGL AssetGuard
NGL’s single pay whole life product, when combined with our trust options, offers an increasing death benefit and provides a secure financial protection option for final expenses and estate planning.
NGL Funeral Expense Trust
NGL Estate Planning Trust or Beneficiary Only
Payment plan: Single Pay
Minimum
Maximum
Growth rate: 0.75%
Issue age: 0-99
Health questions: None - Guaranteed Issue
Death benefit: Immediate full death benefit
Calculation of premium: Premium is the face amount multiplied by the appropriate premium rate.
NGL AssetGuard earns daily simple growth.
Asset Transfer Using the NGL Estate Planning Trust
The NGL Estate Planning Trust is designed to be used for asset transfer to help your clients easily transfer wealth to their heirs and favorite charities. This trust is offered at no cost to your clients, with no trust fees, and can be used in addition to any other trust they may already have.
NGL Estate Planning Trust ($2,500
- $100,000)*
• Set aside up to $100,000 to transfer assets and also cover final expenses
• Ideal for leaving a financial legacy to loved ones and charities
• Not designed for Medicaid planning, but may be exempt asset under Medicaid guidelines after 60-month lookback
• Funeral costs paid first with excess funds directed to named beneficiaries (as many as desired) or the estate of the insured
• Trust is policy owner and beneficiary
Benefits
• Trust proceeds are income tax free
• Exempt from probate – funds available immediately!
• Keeps assets safe from creditors
• Trust is totally free – no fees
• Funds are totally portable – can be used with any funeral home provider
• Anyone can qualify
• Simple to use – just add a trust assignment form to insurance application
• Funds paid within 48 hours**
• Trust provides peace of mind for your clients–priceless
As with any trust or irrevocable assignment, educate your client on irrevocable assignments and the resulting permanent transfer or ownership of policy rights: not able to surrender, loan or receive a premium refund after free look, not able to change ownership or beneficiary, not able to change policy face amount or plan.
*Individual state regulations including product availability, allowed maximum or minimum, may vary by state.
We recommend your client contact a legal advisor for complete details on irrevocable assignments, Medicaid eligibility and using a trust to protect their assets, including a life insurance policy.
**In most cases.
Montana maximum for NGL Estate Planning trust is $25,000.
NGL Estate Planning Trust not availalbe in NY.
Asset Protection Using the NGL Funeral Expense Trust
The NGL Funeral Expense Trust* is designed to be used for asset protection and may possibly help your clients qualify for Medicaid. This trust is offered at no cost to your clients, with no trust fees, and can be used in addition to any other trust they may already have.
NGL
Funeral Expense Trust ($2,500 - $15,000)**
• Set aside up to $15,000 to cover funeral and other final expenses
• May be exempt asset under Medicaid guidelines***
• Can help qualify for Medicaid now
• Funeral costs paid first with any excess funds going to the estate of the insured
• Trust is policy owner and beneficiary
As with any trust or irrevocable assignment, educate your client on irrevocable assignments and the resulting permanent transfer or ownership of policy rights: not able to surrender, loan or receive a premium refund after free look, not able to change ownership or beneficiary, not able to change policy face amount or plan.
Benefits
• Trust proceeds are income tax free
• Exempt from probate – funds available immediately!
• Keeps assets safe from creditors
• Trust is totally free – no fees
• Funds are totally portable – can be used with any funeral home provider
• Anyone can qualify
• Simple to use – just add a trust assignment form to insurance application
• Funeral provider paid within 48 hours****
• Trust provides peace of mind for your clients – priceless
*Not available in Indiana. Indiana residents may use the NGL Final Expense Trust, which offers similar benefits using an Indiana-based trust.
**Individual state regulations including product availability, allowed maximum or minimum, may vary by state. We recommend your client contact a legal advisor for complete details on irrevocable assignments, Medicaid eligibility and using a trust to protect their assets, including a life insurance policy.
***Medicaid limits the face amount of policies assigned to the NGL Funeral Expense Trust which they will consider excluded assets in the following states. Limits as of 07/01/2024: AZ - $9,000; CT - $10,000; DE - $15,000; GA - $10,000; IA - $13,125; IL - $7,981 (Illinois policies that are assigned to the NGL Funeral Expense Trust will be issued up to the current state Medicaid limit ($7,981), or up to the $15,000 limit if we are provided with verbal confirmation that a guaranteed Prefunded Funeral Agreement (PFA/SGS) will be obtained at the time of Medicaid application); IN - $10,000; KS - $11,670 LA - $10,000; MO - $9,999; NE - $6,346; PA - $15,000 (premium); SD - $15,000; TN - $6,000; UT - $7,000; VT - $10,000 ****In most cases.
NGL Funeral Expense Trust not available in FL, MA, MI, ND, NV, NY or TX.
The Process of NGL’s Irrevocable Trusts
Existing funds
Insurance Policy Policy assigned to NGL Irrevocable Trust Claim paid Death benefit GROWS!
Use money from savings, 1035 Exchanges, etc.
Protected funds earn interest (income tax-free) until time of need
If your client is interested in easily transferring wealth, as well as funding their final expenses, please see information available on the NGL Estate Planning Trust
Funeral provider paid within 2 business days
Beneficiary(ies) or Estate of insured
Funds avoid probate costs and delays; expenses covered immediately
If your client is interested in protecting assets for Medicaid qualification and funding their funeral, please see information available on the NGL Funeral Expense Trust
Advantages of Using Life Insurance in Combination with a NGL Trust
Why use insurance?
NGL’s AssetGuard offers funding for funerals, other final expenses, and allows for easy transfer of a portion of assets while avoiding some of the common disadvantages of other funding options.
Proceeds avoid probate costs
of market
Are
your
funds protected?
Transferring ownership into one of the NGL trusts is another step that may help protect assets and easily transfer wealth. Plus, the trusts ensure that funeral expenses are paid first and are protected from any creditors.
Benefit paid directly to the funeral home first?
Funds protected from creditors?
Excluded asset in order to qualify for Medicaid and SSI?
put into trust for funeral expenses.
End-of-Life Expenses
Average Funeral Costs
This list represents the most commonly selected services and merchandise according to the 2023 National Funeral Directors Association General Price List Survey.
Costs
(based
cremation casket, rental casket, alternative cremation container, urn)
*2023 National Funeral Directors Association General Price List Report. **2023 https://www.thezebra.com/resources/personal-finance/how-much-does-a-funeral-cost/
The Secrets to Selling AssetGuard
Understanding your client’s need will help determine which trust is best
NGL’s AssetGuard, when combined with the right trust, enables your client to transfer up to $100,000 of their assets to a beneficiary while also setting aside money for their end-of-life expenses. The process is quick, easy and may offer asset protection for those needing to apply for Medicaid. Here are some helpful tips and strategies for selling the product.
What is the typical age of an AssetGuard client?
The target age typically includes individuals in their mid 60s and older. The average AssetGuard policyholder purchase age is 70 years old. Once a prospect begins to approach 70, life events start to bring mortality into focus so they begin to think about end-of-life expenses. By this time, these clients also have learned how to live in retirement and have figured out how much money they need to meet their monthly or annual expenses. They begin to think, instead, about how much money they can afford to pass on to their loved ones.
Who is the target market for AssetGuard?
There are two distinct markets for AssetGuard.
Client A (Estate Planning Trust)
This client has a sufficient amount of assets and is not likely to need to qualify for Medicaid (at least not within 5 years). The goal for this client is not only to set aside and protect funds for their end-of-life expenses but also to pass on a limited amount of their accumulated wealth to their children, grandchildren or even a favorite charity.
Client B (Funeral Expense Trust)
This client has limited assets and is facing the need to qualify for Medicaid either immediately or in the foreseeable future (within 5 years). The goal with this client is to set aside and protect enough funds to pay for their end-of-life expenses, when needed. An AssetGuard policy assigned to NGL’s Funeral Expense Trust will ensure the funds for funeral expenses are secure and may be considered an exempt asset by Medicaid in most states.
A couple of common objections:
Why not advise clients to go to the funeral home to preplan?
Advising a client to visit the local funeral home to preplan their funeral has been the standard advice given by many attorneys and financial planners over the years. However, the reality is that their clients rarely follow through.
The end result is nothing gets done. When the time comes, not only are there no plans in place, neither are there any funds readily available to pay for the funeral services. And with funeral homes typically requiring payment prior to providing any services, this can lead to some diffucult family situations as to how the funeral bill will be paid and sometimes can even delay the actual funeral.
For your clients who purchase an AssetGuard policy and irrevocably assign it to one of NGL’s trusts, some of these problematic issues can be avoided.
What is the leverage value of AssetGuard?
The goal of the AssetGuard product is not to leverage or increase an asset; rather it is to protect it! AssetGuard is a guaranteed issue, whole life insurance product, typically sold to older adults (ages 66-99) through a simplified underwriting process. Clients that would not qualify for other types of underwritten insurance can purchase an AssetGuard policy.
A great value of the AssetGuard product is in the free trust that helps protect the policy funds from Medicaid and other creditors. Establishing a trust of this type could cost a consumer anywhere from $1,500-$3,000 if done with an attorney or financial planner however, there is no cost for the trust when combined with NGL’s AssetGuard policy.
Funeral costs are paid out first, typically within two business days, and without a death certificate (in most states where not required).* Any remaining funds are paid out at the same time to the beneficiary(ies). This all happens outside of probate and significantly reduces the financial hardship, discomfort and inconvenience felt by survivors. Not only does traditional insurance require a death certificate, it often takes a minimum of 30 days to receive payment but the funeral home has to be paid prior to the availability of these funds.
The end result of using AssetGuard, is the funeral bill is paid and the designated beneficiary(ies) receive their proceeds within two business days, oftentimes before the insured’s funeral has even taken place.* The family is saved from having to have that difficult conversation about who’s going to pay for the funeral.
What about clients with ample financial resources?
While a client may have more than ample resources, following a person’s death, those resources may not be readily available to pay end-of-life expenses. This can pose a problem since most funeral homes require immediate payment prior to providing any services. The AssetGuard product, combined with the NGL Estate Planning Trust, ensures the funds are there when they are needed. Difficult family conversations over how to pay for the funeral are avoided since the funeral home is paid within two business days.* If the NGL Estate Planning Trust is used, the policy proceeds may even be large enough to assist the family in covering other expenses (e.g. costs incurred by relatives traveling for the funeral, hotel costs, other immediate bills, etc.) The family can instead focus on the grieving process, starting with the funeral celebration.
*Claims are processed within two business days or less, in most cases. In most cases, payments are made the next business day, following receipt of completed claim.
The NGL team designed its AssetGuard whole life insurance product in conjunction with its unique NGL Trusts to specifically focus on estate planning and asset protection needs. For more information regarding ways that NGL can help you and your clients address their estate issues and protect assets, visit www.nglic.com.
Products and trust limits may vary by state. Some states may vary on Medicaid rules and eligibility is not guaranteed; it is recommended to consult an Elder Law Attorney in your state for assistance.
Routing Number
PAYMENT DISCLOSURE: When I provide my account information above, I authorize National Guardian Life Insurance Company (NGL) to make a one-time withdrawal from my bank account for the amount provided on this form to pay the policy premium. I authorize the financial institution to process the withdrawal as if I had signed it. If I provide a check as payment, I authorize NGL to use information from my check to make a one-time electronic fund transfer from my account. When information from my check is used to make an electronic fund transfer, funds may be withdrawn from my account as soon as the same day I make my payment, and I understand I will not receive my check back from my financial institution. In the event that my payment is not honored, NGL has the right to re-present the transaction.
BENEFICIARY INFORMATION
Name and Relationship of Primary Beneficiary, Estate of Insured, or NGL Trust APPLICANT SIGNATURES
To the best of my knowledge and belief, the above information is true and complete and I agree to all authorizations and disclosures included. I understand that no insurance will be effective until this form is approved and the Policy is issued while the Insured is living. I acknowledge that the Policy applied for provides funds at the time of death which may be used for the purchase of funeral services and merchandise, but does not provide specific funeral services and merchandise. It is not an agreement with a funeral establishment. I understand that any information provided regarding the cost of funeral services was provided as general consumer information only. No representations were made that specific merchandise and/or service have been purchased or will be provided at the time of death. If I am the Owner for insurance on the life of the Proposed Insured, I certify that I have an insurable interest in his or her life. I acknowledge that I have read the fraud warning statement on this form.
EXAMPLE
I certify that any information recorded by me on this form is true and accurate to the best of my knowledge.
Please list any agents not included in the AGENT’S STATEMENT section.
WARNING STATEMENTS
For Residents of DE, ID, IL, IN, ND, NV and WY: Any person who knowingly and with intent to defraud an insurer submits a written application or claim containing any materially false or misleading information is guilty of insurance fraud. For Residents of California: For your protection California law requires the following to appear on this form: Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. For Residents of District of Columbia: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.
For Residents of GA and KS: Any person who knowingly and with intent to defraud an insurer submits a written application or claim containing any materially false or misleading information may be guilty of insurance fraud. For Residents of Pennsylvania: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties.
Irrevocable Assignment of Ownership to NGL Estate Planning Trust (herein
called “Trust”)
National Guardian Life Insurance Company (NGL) Phone 800.762.9883 • Fax 866.228.9927 • www.nglic.com
Mailing Address:123 Town Square Place • PMB 749 • Jersey City, NJ 07310
For Home Office Use Only
Owner (If other than Insured) __________________________________________________________________
Trust Beneficiary for excess proceeds
Effective 45 days from the date NGL receives this form, I hereby assign ownership of this policy to the Trust.
I understand that by transferring ownership of this policy to the Trust, as of the effective date:
1. This policy is accepted by the Trust subject to all the terms of the Trust which, if the Trust is the primary beneficiary on the policy, includes payment of the policy proceeds for the funeral, burial and cremation expenses for the Insured, as listed below;
2. The change of ownership is permanent and, except as stated herein, I renounce my power to control ownership of the policy;
3. I give up any remaining right to cancel the policy and receive a return of premium under the Right to Cancel provision;
4. I waive all rights under the policy to surrender it for cash, or to obtain a loan against the policy;
5. I give up the right to change the beneficiary on this policy or riders, if any;
6. I give up the right to change the Trust Beneficiary (except you may change the Trust Beneficiary if the Trust Beneficiary pre-deceases the insured. Please note: changing the Trust Beneficiary may affect the lookback period for public assistance);
7. Any proceeds received by the Trust in excess of the amount required to cover the cost of the approved goods and services for the Insured’s funeral, burial or cremation will be paid to the Trust Beneficiary named at the time of this assignment if any, otherwise, to the estate of the Insured;
8. It is my personal obligation to pay all premiums due on this policy (if any) and, if my failure to pay premiums results in the lapse of the policy, the Trust will have no obligation to pay my funeral or burial expenses; and
9. My ability to qualify for state and federal public assistance is not guaranteed.
I may obtain a full copy of the Trust, at any time, upon written request to:
National Guardian Life Insurance Company (NGL)
Mailing Address: 123 Town Square Place • PMB 749
Jersey City, NJ 07310
Signature
The Trust accepts this assignment and agrees to use the proceeds of the Policy for the payment of funeral expenses.
Authorized Expense Directive
Insured hereby expressly authorizes and directs Trustee to expend Trust assets to service or product providers in payment of expenses related to the provision of the following services and/or products.
List of possible goods and services qualifying for reimbursement
Basic Services of Funeral Director & Staff
Other Professional Funeral Services
Embalming
Other Care of Deceased
Dressing/Cosmetology/Casketing
Funeral Home Facilities and/or Staff
Services
Viewing/Visitation
Funeral Service
Memorial Service/Celebration of Life
Graveside Service
Other
Cremation
Other Funeral Merchandise
Clergy Honorarium
Death Certificates
Musicians
Temporary Marker
Stationery Package
Obituary Notices
Flowers Clothing Open/Close
Casket
Alternative Container
Outer Burial Container
Other Services
Transportation Equipment & Driver
Transfer of Deceased
Funeral Vehicle/Hearse
Car/Limousine
Utility/Service Vehicle
Other
Cemetery Charges
Irrevocable Assignment of Ownership to NGL Funeral Expense Trust
(herein called “Trust”)
National Guardian Life Insurance Company (NGL) • Phone 800.762.9883 • Fax 866.228.9927 • www.nglic.com
Mailing Address: 123 Town Square Place • PMB 749 • Jersey City NJ 07310
Owner (If other than Insured) __________________________________________________________
Effective 45 days from the date NGL receives this form, I hereby assign ownership and change the beneficiary of this policy to the Trust. This transfer, once effective, is made to comply with the requirements of any applicable state public assistance and federal public assistance programs.
I understand that if I am assigning ownership to the NGL Funeral Expense Trust, when applying for public assistance I may be required to provide a list of services and merchandise I have selected from the funeral home of my choice.
I understand that by transferring ownership of this policy to the Trust, as of the effective date:
1. This policy is accepted by the Trust subject to all the terms of the Trust which includes payment of the policy proceeds for the funeral expenses, burial and cremation for the Insured, as on the back of this form. My Funeral Home of choice is _____________________________________________________or any other Funeral Home as their interest may appear;
2. The change of ownership is permanent and, except as stated herein, I renounce my power to control ownership of the policy;
3. I give up any remaining right to cancel the policy and receive a return of premium under the Right to Cancel provision;
4. I waive all rights under the policy to surrender it for cash, or to obtain a loan against the policy;
5. I give up the right to change the beneficiary on this policy or riders, if any;
6. Policy proceeds that exceed the cost of the approved goods and services for the Insured’s funeral, burial or cremation shall be paid to the Guardianship/Conservatorship account of the insured, if applicable, otherwise to the State, if required by the applicable State’s Medicaid recovery program. If payment to the State is not required, or if excess proceeds exist after payment to the State, all such excess proceeds shall be paid to the Estate of the Insured. This supersedes any Beneficiary named on my policy application; and
7. It is my personal obligation to pay all premiums due on this policy (if any) and, if my failure to pay premiums results in the lapse of the policy, the Trust will have no obligation to pay my funeral expenses.
I may obtain a full copy of the Trust, at any time, upon written request to: National Guardian Life Insurance Company (NGL) Mailing Address: 123 Town Square Place PMB 749 Jersey City, NJ 07310
The Trust accepts this assignment and agrees to use the proceeds of the Policy for the payment of funeral expenses. By:_____________________________________________________
To be used for purposes of Immediate Medicaid Eligibility ONLY
For Applicant: I hereby elect to make this irrevocable assignment effective immediately. I understand that by making this election I give up all rights to cancel the Policy and receive a return of premium under the Right to Cancel provision of the policy. I understand that I may need to provide a list of services and merchandise I have selected from the funeral home of my choice, as noted above, if I wish to qualify for public assistance. To make an immediate transfer election please sign here
For Agent: I _____________________________certify that on ______________ I have explained to this insured that by signing the above line, he/she is forfeiting their right to cancel the policy and assert that he/ she is aware of the consequences of immediate transfer. I understand that this option should only be used if there is an immediate need to reduce assets in order to qualify for Medicaid.
Agent Signature: ___________________________________________ Date __________________
NGL Trust Claim Form
Name of Person Legally Responsible for Making the Funeral Arrangements Name of Funeral Provider
Send payment to funeral home via:
*If requesting payment via Electronic Funds Transfer, you must have completed “Request and Authorization to Pay Claims Via Electronic Funds Transfer” (Form #2636).
If the deceased received Medicaid benefits, excess proceeds from this policy may be subject to estate recovery. Contact your State Medicaid Office or an elder law attorney for details.
FUNERAL DIRECTOR AUTHORIZATION
(applicable only if a portion of proceeds are payable to funeral home)
Signature of Funeral Director Date
AUTHORIZATION OF PAYMENT FOR FUNERAL GOODS AND SERVICES
As the person legally responsible for the funeral arrangements of the deceased Insured, I certify that the Funeral Provider provided the requested funeral goods and services on behalf of the insured, and authorize payment of the above amount to the Funeral Provider for the funeral goods and services furnished. I understand that the Company reserves the right to request a certified copy of the death certificate before benefits are paid. Thus, I understand it is important to retain original versions of these forms. I acknowledge that I have read the fraud warning statement on the last page of this form.
Signature of Person Legally Responsible for Making the Funeral Arrangement (Not the Funeral Director) Date
Complete ONLY if benefits to be paid to BENEFICIARY (not applicable for policies assigned to the NGL Funeral Expense Trust)
Name of Trust Beneficiary(ies) for Excess Proceeds Relationship to Insured
Street/Mailing Address City State Zip
Signature of Trust Beneficiary(ies) Date
Claim Requirements:
1. Copy of Death Certificate listing cause and manner of death if:
• Claim form is signed in IN, KY, LA or MA
• OH & WI (must be submitted to NGL within 60 days)
• If cause of death is not natural (accidental, suicide or homicide)
2. Copy of the Funeral Bill (if paid in full, copy of proof of payment)
3. This completed form
FET-EPT 10/22
• In TN (if claim is over $15,000)
• All contestable claims
• Whenever a beneficiary is filing direct independent of the funeral home.
NGL’s AssetGuard Agent Guide to Claims
What to expect for standard claim payouts:
• For policies assigned to the NGL Funeral Expense Trust (FET) and NGL Estate Planning Trust (EPT), our goal is to process 100% of claims within two business days, once all claim requirements are received.
• Payment is typically sent via check or EFT the following business day after it is processed. The check may be sent via overnight mail for an additional fee, if elected.
Requirements for filing a claim:
• A completed claim form (who signs the form depends upon whether the funeral home or beneficiary is filing).
• A copy of the funeral bill showing either paid in full or the outstanding balance.
• Additional information may be required if the cause of death is not natural or under other circumstances.
• If the policy is not assigned to either the FET or EPT, please allow 5-10 days for the claim to be processed.
A copy of the death certificate is only required under the following circumstances:
• If the death occurred in IN, KY, LA, or MA.
• If the cause of death is not natural (accidental, suicide or homicide).
• Whenever a beneficiary is filing direct, a copy of the death certificate is always required.
How you can assist the family in filing a claim:
• Notify the funeral home performing the services and request they file the claim.
• Call NGL at 800.988.0826, provide the date of death and request a claim form be sent via mail, email or fax.
• If the beneficiary is filing direct, assist them in completing the claim form and in acquiring the necessary documents including the funeral bill (proof of payment, if paid in full) and a copy of the death certificate. Paperwork can be sent to NGL via fax at 866.228.9450 or securely email it to nglclaims@nglic.com.
How are claims paid?
• The policy first pays for funeral expenses, burial and cremation for the Insured (a list of services and merchandise qualifying for reimbursement with proper documentation can be found on either Funeral Expense Trust or Estate Planning Trust Irrevocable Assignment forms).
• Any funds left over after funeral expenses are paid will be paid to the following:
• Policies in the Funeral Expense Trust – Paid to the Estate of the Insured
• Policies in the Estate Planning Trust – Paid to named beneficiary(ies)
• If the insured received Medicaid/State Assistance, proceeds may be required to be paid to the state in which the insured resided.