Fidelity & Guaranty Life Insurance Company 1 Value Select Term SM

Fidelity & Guaranty Life Insurance CompanyFidelity & Guaranty Life Insurance Company 11

Value Select TermSM


“At last - a term life insurance product worth selling ”

Consumers

• Value Select term provides affordable high face value term insurance for families and businesses.

• Value Select term provides benefits when your client needs them and return of premium if they don’t.

Agents

• Value Select allows the agent to earn better than average income with the addition of unique customer focused rider benefits.

• Value Select several underwriting health categories rewarding a client’s health status.

Value SelectValue Select Product Positioning Product Positioning


Competitive rates – fully guaranteed for the entire termCompetitive rates – fully guaranteed for the entire term

Return of Premium and Disability Income Riders Return of Premium and Disability Income Riders

High 1st year commissionsHigh 1st year commissions

Renewal commissions- up to 10 yearsRenewal commissions- up to 10 years

Short form applicationShort form application

Age nearest birthdayAge nearest birthday

Four preferred classesFour preferred classes

Excellent smoker ratesExcellent smoker rates

No blood through $250k age 50No blood through $250k age 50

Non-Commissionable policy feeNon-Commissionable policy fee

Value Select TermValue Select Term


15, 20, or 30-year term15, 20, or 30-year term

$250,000 minimum face amount$250,000 minimum face amount

Rates guaranteed for full term Rates guaranteed for full term

Four preferred categoriesFour preferred categories

Convertible on or before tenth policy anniversary to ULConvertible on or before tenth policy anniversary to UL

Issue ages (age last birthday)Issue ages (age last birthday) FullyFullyGuaranteedGuaranteed

15-year plan15-year plan 18-65 18-6520-year plan20-year plan 18-60 18-6030-year plan30-year plan 18-55 Non-Tobacco 18-50 Tobacco 18-55 Non-Tobacco 18-50 Tobacco

Value SelectValue Select Policy Design Policy Design


$60 policy fee, non-commissionable, no additional $60 policy fee, non-commissionable, no additional policy fee for up to three insuredspolicy fee for up to three insureds

Two Premium BandsTwo Premium Bands

$250,000$250,000 -- $499,999$499,999

$500,000 and up$500,000 and up

Tremendous selection of ridersTremendous selection of riders Money back return of premium riderMoney back return of premium rider

Other insured rider (up to 3 per policy with only one policy fee)Other insured rider (up to 3 per policy with only one policy fee)

Disability protection riderDisability protection rider Waiver of PremiumWaiver of Premium Accelerated Death BenefitAccelerated Death Benefit

Value SelectValue Select Policy Design cont. Policy Design cont.


Short simple application for quicker turnaround timeShort simple application for quicker turnaround time

No Blood through age 50 & 250KNo Blood through age 50 & 250K

Easier for your clientEasier for your client

Four underwriting bands – Super Preferred ($500K Min Face), Four underwriting bands – Super Preferred ($500K Min Face),

Preferred Plus, Preferred and Standard Preferred Plus, Preferred and Standard

Value SelectValue Select Simple Underwriting Simple Underwriting


Less than 30 days turnaround on fully underwritten Less than 30 days turnaround on fully underwritten

applicationsapplications

Easy to manage pending reports - SalesLinkEasy to manage pending reports - SalesLink

Weekly EFT availableWeekly EFT available

And Let’s talk commissions…And Let’s talk commissions…

High First Year Rate High First Year Rate

ANDAND

Renewals up to 10 YearsRenewals up to 10 Years

Value SelectValue Select - Get Paid Faster - Get Paid Faster


Maximum monthly benefit is the lesser of:Maximum monthly benefit is the lesser of: $3,000 monthly $3,000 monthly oror 66 2/3% of monthly pay66 2/3% of monthly pay

Total disability is defined as inability to substantially perform Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of “any in the usual and customary way the essential duties of “any occupation” for which the insured may qualify by reason of occupation” for which the insured may qualify by reason of education, training or experienceeducation, training or experience

Must be added at issue onlyMust be added at issue only 90 day wait 2 year benefit90 day wait 2 year benefit

Disability Protection Rider

Value SelectValue Select Riders Riders


Using this rider - up to 4 people can be insured under Using this rider - up to 4 people can be insured under the same policy.the same policy.

Ideal for business - allows policyowner to add or drop Ideal for business - allows policyowner to add or drop insureds as needed. insureds as needed.

The death of one insured does not affect coverage for The death of one insured does not affect coverage for the others.the others.

Face amounts may vary by individual.Face amounts may vary by individual. Available for all term periods.Available for all term periods.

Other Insured RiderOther Insured Rider


One premium is charged for all covered childrenOne premium is charged for all covered children

Issue ages: 15 days through 18 years of age; age last Issue ages: 15 days through 18 years of age; age last birthdaybirthday

Minimum/ maximum: $5,000/ $10,000; available in Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000increments of $1,000

If primary insured dies while this rider is in effect; each If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25.child will receive a paid- up term life policy to age 25.

Convertible to age 25.Convertible to age 25.

Children’s Level Term Life RiderChildren’s Level Term Life Rider


If client is diagnosed with a terminal illness, they can If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a receive up to 50% of the policy death benefit, up to a maximum of $250,000maximum of $250,000

Must be elected at policy issue.Must be elected at policy issue.

No Premium charge.No Premium charge.

One time administrative fee of $350 at time of claim.One time administrative fee of $350 at time of claim.

Accelerated Benefit RiderAccelerated Benefit Rider


Concept: Concept:

Coverage for your client if they need it…Coverage for your client if they need it…return of premium if they don’t!return of premium if they don’t!

Available at issue onlyAvailable at issue only Typically increases the premium by 30% on the 30- year Typically increases the premium by 30% on the 30- year

term, by 90% on the 20-year term, and by 144% in the 15- term, by 90% on the 20-year term, and by 144% in the 15- year termyear term

IS IT A GOOD DEAL FOR YOUR CLIENT?IS IT A GOOD DEAL FOR YOUR CLIENT?

Money Back Rider



Let’s assume the following:Let’s assume the following: Male / Age 45 / Pref. Non-tobacco / $500,000Male / Age 45 / Pref. Non-tobacco / $500,000

Value Select Term $500,000 w/o Return of Premium =Value Select Term $500,000 w/o Return of Premium =

$2035.00$2035.00

Value Select Term $500,000 w/ Return of Premium =Value Select Term $500,000 w/ Return of Premium =

$2605.00$2605.00

Increased cost to provide guaranteed Return of Premium =Increased cost to provide guaranteed Return of Premium =

$570.00$570.00

Additional $570.00 generates a guaranteed refund of Additional $570.00 generates a guaranteed refund of

premium of $78,150 at the end of 30 years.premium of $78,150 at the end of 30 years.

The net result...The net result...

Money Back Rider



8.59%8.59%Net after-tax guaranteed equivalent over 30 yearsNet after-tax guaranteed equivalent over 30 years

Money Back Rider



Full money back is paid if the Full money back is paid if the policy is kept in force to the end policy is kept in force to the end of the term periodof the term period

No money back is paid for No money back is paid for lapses in the first 5 policy yearslapses in the first 5 policy years

Partial money back is available Partial money back is available for lapses after 5 policy years, in for lapses after 5 policy years, in the following percentages of the following percentages of premiums paid:premiums paid:

Money Back Rider



What is better than a fully What is better than a fully

guaranteed 30 year term life guaranteed 30 year term life

insurance product?insurance product?

Value SelectValue Select Benefits Benefits


A 30 year term life insurance A 30 year term life insurance

product from F&G Life with a product from F&G Life with a

return of premium rider!return of premium rider!

Value SelectValue Select Benefits Benefits


F&G Life has designed F&G Life has designed Value SelectValue Select to aggressively to aggressively

compete in the “neglected” brokerage term marketcompete in the “neglected” brokerage term market

Value SelectValue Select exemplifies F&G Life’s commitment to exemplifies F&G Life’s commitment to

niche market opportunitiesniche market opportunities

Value SelectValue Select delivers distinct benefits to your clients delivers distinct benefits to your clients

Agents now have a product that they can afford to Agents now have a product that they can afford to

sell with less hassle for you & your customer sell with less hassle for you & your customer

Summary and ConclusionsSummary and Conclusions


““Benefits for your clients if Benefits for your clients if they need them…return of they need them…return of

premium if they don’t”premium if they don’t”

Saver’s Select…..SimplySaver’s Select…..Simply


Value Select Marketing MaterialsValue Select Marketing Materials


Value Select Administrative FormsValue Select Administrative Forms

Documents

Fidelity & Guaranty Life Insurance Company 1 Value Select Term SM