Fidelity & Guaranty Lifephotos.naaleads.com/email_pics/TrainingNAA.pdf · The FG Life-Heritage offers immediate wealth creation with a 10% premium bonus, ROP rider, living benefit

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Fidelity & Guaranty Life

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

Agenda

1. Single Premium IUL: FG Life-Heritage

1. Product Features

2. Accept/Reject Point of Sale Underwriting Process

2. FIUL Products: FG Life-Choice and FG Life-Elite

1. Product Features

2. Index Features

3. Sales Concepts

3. FIUL Past Performance

4. Fidelity & Guaranty Life

1. Service

2. Power Producer Program

12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.2

PRESENTED BY: PRESENTED ON:

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Single Premium IUL: FG Life-Heritage


FG Life-Heritage

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The FG Life-Heritage is a single premium indexed universal life product.

The FG Life-Heritage offers immediate wealth creation with a 10%

premium bonus, ROP rider, living benefit rider!


Index Features: FG Life-Heritage

FG Life-Heritage

Interest Crediting Options*

S&P 500 Option

Fixed Account Option

Any combination of all interest crediting options

Crediting MethodologyAnnual Point-to-Point

Monthly Point-to-Point

Participation Rate 100% and 140% Guaranteed (in the indexing formula) for APTP/ 100% Guaranteed for MPTP

Cap** Currently 6% on 100% par/ 5.5% on 140% par/ 2.75% on MPTP 100% par

Guaranteed Minimum Interest Rate 0.25%

Fixed Account Currently 3%

5 *Subject to state availability. Certain restrictions may apply**Cap rates are subject to change at the discretion of Fidelity & Guaranty Life

. FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

Strong Caps and Downside Protection

• 6% cap on Annual Point-to-Point with 100% guaranteed participation rate indexing option

• 5.5% cap on Annual Point-to-Point with 140% guaranteed participation rate indexing option

• 2.75% cap on Monthly Point-to-Point indexing option

• 3% on fixed account option

• 0.25% guaranteed interest rate – Downside Protection

Interest rates subject to change at Insurer’s discretion and are effective annual interest rates.

Indexed Interest rates are subject to a cap. Cap rates are subject to change at the discretion of Fidelity & Guaranty Life

6 FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.12-473

Product Features: FG Life-Heritage

FG Life-Heritage

Minimum Face Amount $25,000

Maximum Face Amount$500,000 (Age 50-76)$250,000 (Age 77-85)

Issue Ages 50-85 (age last birthday)

Surrender Charge Period 14 years

Underwriting Classes Standard Nontobacco, Standard Tobacco, table 4

Premium Test CVAT

Key Features

(May not be available in all states)

No Lapse Guarantee to age 110

Guaranteed Return of Premium Rider

10% Premium Bonus

Critical Illness Rider

Terminal Illness Rider

Accept/Reject Point of Sale Underwriting

CommissionsCommissions are paid on the single premium amount, FG Life-Heritage production

does not count toward the power producer program

7FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

Tax-Free Death Benefit

Example:

What does $50,000 Single Premium Buy - NT

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Net Death Benefit Year One

Age Male Female

50 $154,005 $172,118

60 $113,025 $126,495

70 $86,657 $96,296

80 $69,527 $75,852

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

with 4.61% interest rate

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Product Features

• Tax-Free Death Benefit

• No Lapse Guaranteed

• Immediate Liquidity with ROP rider

• 10% Premium Bonus

• Terminal and Critical Illness Rider

• Strong caps and downside protection

• Policy Loans Available

• Accept/Reject Point of Sale Underwriting Process9 FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

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No Lapse Guarantee

No Lapse Guarantee

If no loans or partial surrenders are taken, the policy is guaranteed not to

lapse prior to its maturity at age 110


Immediate Liquidity in case life changes your plans…

Return of Premium

Minimum surrender value will always be at least 100% of

the premium you paid, less any loan balance or net

partial surrenders previously taken.

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Afraid You Can’t “Get Out”?

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.12-473

10% Premium Bonus

10% Premium Bonus

10% Upfront premium bonus that is credited to the initial single premium

amount on date of issue. All charges will be taken from the policy after the

bonus has been credited


• “Living Benefits”

– Terminal Illness – Will pay up to 100% of death benefit if a doctor certifies that the insured’s death is expected within 24 months

– Critical Illness – Will pay up to 100% of the death benefit when an insured suffers a heart attack, stroke, cancer, or end-state renal failure

Features may not be available in all state.

Please refer to your policy for full details.

In some states features may require a one-time administration fee up to $500 dollars.

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Afraid Health Changes Your Plans?

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.12-473

Accept/Reject POS Underwriting


Easy as 1,2,3

Easy 3 step process, No blood work or medical exam needed!

• Step 1: Take an Application

– If no “yes” answers in health section proceed to step 2– If “Yes” answer, skip to step 3.

• Step 2: Complete a 15 minute Phone Interview

‒ After interview underwriting decision will be made and policy number will be given

• Step 3: Submit the application

– 30 days to submit application with Cash

– 75 days to submit the application and receive 1035 exchange

– Applications with a “yes” answer in the health section must be submitted to the company.

– DO NOT submit application unless telephone interview is complete15


Recap

• Tax-Free Death Benefit

• No Lapse Guaranteed

• Immediate Liquidity with ROP rider

• 10% Premium Bonus

• Terminal and Critical Illness Rider

• Strong caps and downside protection

• Policy Loans Available

• Accept/Reject Point of Sale Underwriting Process16



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FIUL Products: FG Life-Choice and FG Life-Elite


FG Life-Choice

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The FG Life-Choice is strongest in the death benefit sale and used as a term alternative solution with strong cash value accumulation potential offering NO EXTRA PER THOUSAND CHARGES; offers competitive caps and two years to collect first-year commissions on less than target premium sales.


FG Life-Elite

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The FG Life-Elite is a strong tax-free income product with a maximum guaranteed variable loan rate of 5%, high caps (15.25% on the 100% PAR Annual Point-to-Point option), and high target premiums.


Product Features:

FG Life-Choice FG Life-Elite

Minimum Face Amount

$100,000 $100,000

Issue Ages 0-80 (age last birthday) 0-80 (age last birthday)

Surrender Charge Period

15 years 15 years

Underwriting Classes

Preferred Nontobacco, Standard Nontobacco, Preferred Tobacco, Standard

Tobacco

Preferred Nontobacco, Standard Nontobacco, Preferred Tobacco, Standard

Tobacco

Key Features

(May not be available in all

states)

Surrender Charge Waiver on Excess Premium

Over Loan Protection

Primary Insured Level Term

Ultimate Protection Rider

Unique Living Benefit Riders

Over Loan Protection

Primary Insured Level Term

Ultimate Protection Rider

Unique Living Benefit Riders

Loan Options

(May not be available in all

states)

Variable Loan Option

• Max rate of 6.5%

Fixed Loan Option

• Years 1-10 – 2% net

• Years 10+ – 0% net cost

Variable Loan Option

• Max rate of 5%

Fixed Loan Option

• Years 1-10 – 2% net

• Years 10+ – 0% net cost

20 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

Living Benefits

• Accelerated Benefit for Critical Illness – Up to 100% of the death benefit of the insured if the insured suffers a critical condition (heart attack, stroke, cancer etc)*

• Accelerated Benefit for Terminal Illness – Up to 100% of the death benefit if the insured is diagnosed with a terminal illness and has an expected life expectancy of less than 24 months*

• Over Loan Protection Rider – Prevents the life insurance contract from lapsing as a result of outstanding loans

• Waiver of Monthly Deduction Rider – Keeps policy in force by waiving the monthly charges should the insured become totally disabled for longer than 6 months

*Not to exceed $500,000 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.21

Index Features:

FG Life-Choice FG Life-Elite

Interest Crediting

Options*

S&P 500 Option



S&P 500 Option



Crediting

Methodology

Annual Point-to-Point Reset

Monthly Point-to-Point Reset

Annual Point-to-Point Reset

Monthly Point-to-Point Reset

Participation Rate100% and 140% Guaranteed (in the

indexing formula)100% and 140% Guaranteed (in the

indexing formula)

Cap Currently 10.5% on 100% par/ 9% on

140% par/ 4% on MPTPCurrently 15.25% on 100% par/ 12.25% on

140% par/ 5.5% on MPTP

Guaranteed Minimum

Interest Rate.25% .25%

Fixed Account Currently 4.00% Currently 4.5%

*Subject to state availability. Certain restrictions may apply. 12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.22

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Current Illustrative Interest Rates for FG Life-Choice• 7.05% on 100% Participation Rate Strategy (10.5% Cap)

• 6.56% on 140% Participation Rate Strategy (9% Cap)

• 7.70% on the Monthly PT-to-PT Strategy (4% Cap)

• 4% on Fixed Option

Current Illustrative Interest Rates for FG Life-Elite• 8.98% on 100% Participation Rate Strategy (15.25% Cap)

• 8.53% on 140% Participation Rate Strategy (12.5% Cap)

• 9.50% on the Monthly PT-to-PT Strategy (5.5% Cap)

• 4.5% on Fixed Option

Current Illustrative Rates

12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

Minimum Guaranteed Interest Rate – .25%

on all Participation Rate Strategies

Annual Point to Point

24 FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12-473

JAN 15S&P 1000

FEB 15S&P 1015

+1.5

MAR 15S&P 1040

+2.46

APR 15S&P 1000

-4

MAY 15S&P 1075

+5

JUN 15S&P 1080

+.47

JUL 15S&P 1100

+1.85AUG 15

S&P 1070

-2.73

SEPT 15S&P 1090

+1.85

OCT 15S&P 1110

+1.83

NOV 15S&P 1130

+1.80

DEC 15S&P 1100

-2.65

JAN 15S&P1075

-2.27TOTAL INDEX CREDIT 7.5%

1075-1000=75; 75/1000 = .075

Monthly Point-to-Point


JAN 15S&P 1000

FEB 15S&P 1015

+1.5

MAR 15S&P 1040

+2.46

APR 15S&P 1000

-4

MAY 15S&P 1075

+7.5+5

JUN 15S&P 1080

+.47

JUL 15S&P 1100

+1.85AUG 15

S&P 1070

-2.73

SEPT 15S&P 1090

+1.85

OCT 15S&P 1110

+1.83

NOV 15S&P 1130

+1.80

DEC 15S&P 1100

-2.65

JAN 15S&P 1075

-2.27TOTAL INDEX CREDIT 5.11%

Index Credit = 1.5+2.45-4+5+.47+1.85-2.73+1.85+1.83+1.8-2.65-2.27 = 5.11


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Sales Concepts


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FG Life-Choice ROP


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FG Life-Choice ROP


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FG Life-Choice to Double Endow


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FG Life-Choice to Double Endow


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FG Life-Elite Dare to Compare


32FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

FG Life-Elite Caps Rise

12-473


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Past Performance of FGL

FIUL Products



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Past Quarterly Index Allocations on 1980 CSO

Master Choice APTP 100 Parsince November 2003


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FIUL Past Performance

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Period S&P Performance Index Int. Credit Duration (years)

Feb 04 - 13 5.51% 6.70% 9

May 04 - 13 6.87% 7.73% 9

Aug 04 - 13 5.82% 7.91% 9

Nov 03 - 13 7.73% 7.74% 10

Weighted Average 6.52% 7.53%

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.35 12-473


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Monthly Index Allocations onFG Life-Choice and FG Life-Elite since December 2010

100% PAR


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Period S&P 500 Performance Index Int. Credit Duration (years)

Jan 11 - 13 6.85% 6.50% 2

Feb 11 - 13 7.15% 6.57% 2

Mar 11 - 13 10.35% 10.35% 2

Apr 11 - 13 8.56% 7.89% 2

May 11 - 13 12.37% 6.04% 2

Jun 11 - 13 14.09% 9.06% 2

Jul 11 - 13 13.57% 7.42% 2

Aug 11 - 13 17.44% 13.50% 2

Sept 11 - 13 18.51% 13.50% 2

Oct 11 - 13 18.92% 13.50% 2

Nov 11 - 13 20.23% 9.80% 2

Dec 11 - 13 13.66% 8.33% 2

Weighted Average 13.48% 9.33%



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Monthly Index Allocations onFG Life-Choice and FG Life-Elite since December 2010

140% PAR


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Period S&P 500 Performance Index Int. Credit Duration (years)

Jan 11 - 13 6.85% 6.00% 2

Feb 11 - 13 7.15% 6.30% 2

Mar 11 - 13 10.35% 11.75% 2

Apr 11 - 13 8.56% 8.15% 2

May 11 - 13 12.37% 5.06% 2

Jun 11 - 13 14.09% 9.28% 2

Jul 11 - 13 13.57% 6.99% 2

Aug 11 - 13 17.44% 11.25% 2

Sept 11 - 13 18.51% 11.25% 2

Oct 11 - 13 18.92% 11.25% 2

Nov 11 - 13 20.23% 10.32% 2

Dec 11 - 13 13.66% 7.33% 2

Weighted Average13.48% 8.69%



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Past Monthly Index Allocations on the new FG Life Elitesince November 2012


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Since the introduction of the new FG Life-Elite product in November 2012, there has been 2 monthly index allocation

Beginning Date Beginning Value Ending Date Ending Value Gain (Loss)100 Par Allocation

%140 Par Allocation

%MPTP Allocation

%

11/15/2012 1353.33 (11/12) 11/15/2013 1798.18 (11/13) 444.85 13.50% 11.50% 24.23%

12/15/2012 1430.36 (12/12) 12/15/2013 1786.54 (12/13) 356.18 13.50% 11.50% 19.08%


Recap

The FG Life Advantage!

• Simple Indexing Strategies

• Living benefit riders

• Maximum guaranteed variable loan rates!

• A .25% minimum guaranteed interest rate in down years

• Competitive target premiums


WHY

FIDELITY & GUARANTY LIFE


Fidelity & Guaranty Life Advantage

Did You Know That … Fidelity & Guaranty Life:

• Has 2 of the top selling Fixed Indexed Universal Life products in the marketplace with the, FG Life-Choice, FG Life-Elite!

• Recently introduced in December 2013 the FG Life-Heritage a new Single Premium Indexed Universal Life Product.

• Brand new IUL iPad App, and Annuity iPad App! With e-app capability currently being tested

• Has an average underwriting time service of 7-10 days on In Good Order life applications!!

• Has a dedicated Case Management Unit that works directly with producers to help get cases through the system!!

• Has a Platinum Life Case Unit to handle large premium cases and very competitive Foreign National Underwriting Guidelines!!

• Pays commissions weekly and will advance up to $3,500 per case on approved producers!!

• Power Producer Program – offering agents a deferred compensation plan.

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11-18112-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

THE POWER PRODUCER PROGRAM BUILD YOUR SUPPLEMENTAL

RETIREMENT NEST EGG


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YearQualification

LevelCredit

Amount

2009 120,000 2,000

2010 120,000 2,000

2011 90,000 2,000

2012 80,000 2,000

2013 90,000 TBD

2014 1.5M Points

FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC

“This program is tantamount to

F&G providing a private pension

plan, a rare commodity in the

world of an independent advisor.”

- Jim B.

New Jersey

13-135

Life Power Producer Program


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Life Power Producer Program

Example

FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLIC

4,000

$2,000

$3,000

$2,000

$4,000

$3,000

$2,000

$4,000

$2,000

$6,000 $9,000 $11,000 $15,0004,000

$3,000

$4,000

$2,000

$4,000

4,000

Qualifying Year 1

(Vesting 0%)

2009

Qualifying Year 2

(Vesting 20%)

2010

Qualifying Year 3

(Vesting 40%)

2011

Qualifying Year2013

Qualifying Year 4

(Vesting 60%)

2012

Annual Deposit

Account Value $10,000 $19,000 $30,000 $45,000$4,000Annual Deposit values assume that annuity contract persistency is 100%. Account Values assume that accumulation is zero.

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$2,000


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Power Producer Program

What our Power Producers are saying……

“One of my objectives for the first quarter of each year is to secure at least 1

Power Producer credit, thus ensuring the rich, progressive nature of the

program. And while doing so, qualifying for the annual Power Producer

Conference is a stones throw away.”

“This is the best income rider in the industry for agents.”

“It's nice to have a business partner that understands how critically

important it is to help me plan for my future, while I help my clients with

theirs!”

“The Power Producer deferred comp program is a terrific way for 1099

commission agents like myself to be afforded a "pay for performance" way

of ensuring that my individual retirement accounts will be significantly

augmented to help support my retirement lifestyle in the future.”

13-135FOR PRODUCER USE ONLY – NOT FOR USE WITH THE GENERAL PUBLICAll quotes solicited by Fidelity & Guaranty Life distribution team in March 2013


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Who to Call



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Thank you for your business!!!


Disclosures

Policies issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD.

Fidelity & Guaranty Life is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York and, in New York only, Fidelity & Guaranty Life Insurance Company of New York. Each Fidelity & Guaranty Life Insurance Company, is solely responsible for its contractual commitments

Optional provisions and riders may have limitations, restrictions and additional charges. Subject to state availability. Certain restrictions may apply.

This document is not a legal contract. For the exact terms and conditions, please refer to the life insurance policy.

Information provided regarding tax or estate planning should not be considered tax or legal advice. Clients should consult their own tax professional or attorney regarding their unique situation.

“S&P® ” is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity & Guaranty Life Insurance Company. Standard & Poor’s does not sponsor, endorse, promote, or make any representation regarding the advisability of purchasing the contract.

Indexed interest rates are subject to a cap. Caps are subject to change at the discretion of Fidelity & Guaranty Life Insurance Company.

Issuance of the life insurance policy depends on answers to health questions in the application.

Surrender charges may apply to partial and full surrenders. Surrenders may be taxable and may be subject to penalties prior to age 59½.

Surrenders and loans may reduce available death benefit. Surrenders beyond basis may be taxable income. Excessive and unpaid loans may reduce policy value and may cause the policy to lapse.

The Power Agent Program is a deferred bonus compensation plan for eligible appointed agents of Fidelity & Guaranty Life Insurance Company. Terms are stated in the Power Agent plan document, which Fidelity & Guaranty Life may amend, limit or terminate at any time.

12-473FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.51

Documents

Fidelity & Guaranty Lifephotos.naaleads.com/email_pics/TrainingNAA.pdf · The FG Life-Heritage offers immediate wealth creation with a 10% premium bonus, ROP rider, living benefit