Advanced Wealth Builders
Indexed Universal Life

Expect more…Flexibility

  • Improved access to your policy’s Cash Value.
  • Access to death benefit value while you are still living.
  • Adjust premium payments and insurance coverage as your needs change.

Life insurance is the only financial tool that creates an immediate reservoir of funds that, at the death of the Insured, can be used to pay off debt, replace lost income, and allow your loved ones to maintain their lifestyles. 

Indexed Universal Life Insurance is considered to be one of the most flexible types of life insurance available in the marketplace today.  Indexed Universal Life allows your to adjust the amount of insurance coverage and the premiums paid to meet your changing insurance needs.  You also have the opportunity to build cash value in your policy income-tax deferred.  Cash value can be accessed during your lifetime to meet unexpected emergencies, take advantage of opportunities, or to supplement retirement income. 

Interest Crediting Strategies


Basic Strategy
All premiums are first paid into the Basic Strategy account.  Once enough premium has been paid to cover the monthly insurance deductions for the coming contract year, all additional premium dollars will be allocated to the interest crediting strategy allocation of your choice.  Premiums are allocated to the interest crediting strategies on the 21st day of the month.  The annual interest crediting rate for the Basic Strategy is guaranteed to be not less than 2.5%.

Your Indexed Universal Life policy offers five choices of interest crediting options.  They include a Fixed Interest crediting strategy and four indexed crediting strategies. 


Fixed-Interest Strategy
Premium allocated to this strategy earn a rate of interest declared by the company, credited on a daily basis, and guaranteed for one year.  The minimum annual rate of interest credited to funds in the Fixed-Interest Strategy is 2.5%.


Indexed Strategies
Premiums allocated to the Indexed Strategies have interest credited based on changes in the S&P 500® Index.  Interest credits will be based on the Index Growth, Participation Rate, and Cap for your chosen strategy.  Your Indexed Universal Life Policy offers three Point-to-Point strategies and one Point-to-Average strategy.





Calculating Index Growth

Point-to-Point Strategy
Index growth equals the difference between the Index beginning value and index ending value, such difference divided by the index beginning value.

 

For example: Index beginning value = 1,000, Index ending value (on the same date one year later) = 1,150, Index Growth = 15% [(1150-1000=150) / 1000 = 15%].

 

Point-to-Average Strategy

Index growth equals the difference between the Index beginning value and the daily average, such difference divided by the Index beginning value.  (To find daily average, calculate the average of all the daily Index values over the 12-month period.)

 

For example: Index beginning value = 1000, daily average = 1100, Index Growth = 10% [(1100-1000=100) / 1000 = 10%].

 

Above examples are hypothetical only and do not represent actual Index changes, Participation Rates, or Caps.

 

Calculating Interest Credits

Once the Index Growth Percentage has been calculated, a Participation Rate and Cap are applied to determine how much will actually be credited to your account values.  The Participation Rate is the maximum percentage of the Index Growth that may be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, the full 10% may be used to determine interest earned.  If the Participation rate is 80%, 8 % is used in the calculation of interest earned [10% x 80% = 8%]

 

The Cap is the maximum Index Growth that will be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, but the Cap is set at 6%, 6% will be credited.

 

Upside Potential with Downside Income

Building tax-deferred cash value

Indexed Universal Life is a form of permanent life insurance which combines pure insurance protection with the opportunity for cash value accumulation.  Premiums paid in excess of the cost of the pure insurance amount accumulate with interest, tax-deferred.  These values can be accessed during your lifetime through withdrawals or loans.

With Indexed Universal Life you have options regarding how interest is credited to your cash value.  You can choose to have a fixed interest rate applied or have interest credited based on changes in the S&P® 500 Index.  This kind of interest crediting strategy allows you to take advantage of changes in the market index without the risk of stock market losses.  Minimum interest guarantees built into your contract ensure that your cash value will not decline due to decreases in the index. 

Premium Payments

You can make regular, level payments; change payment amounts; or you can skip payments altogether (subject to the contract’s minimums and maximums).  It is important to remember that you need to make premium payments sufficient to keep the contract in force.  Paying higher premiums than are necessary (or required) can result in enhanced tax-deferred cash value growth and, ultimately, greater premium payment flexibility.

Death Benefit Options

As your death benefit needs change, your policies death benefit can be adjusted to meet those needs.  As your survivor protection needs grow, Indexed Universal Life provides the ability to increase your death benefit within your policy, thereby eliminating the need for multiple policies.  Additionally, as your needs shift toward accumulating assets for retirement, you may decrease your death benefit protection and direct your premiums toward cash-value build-up.

Accelerated Living Benefits
MONEY FOR A TERMINAL, CHRONIC OR CRITICAL ILLNESS:
Benefits may help pay nursing home care, home health care, adult day care, medical procedures, drug therapies, household expenses, and other quality of life expenditures.

 
Our Accelerated Benefits Riders - available at no additional cost - allow you to access all or part of your death benefit to help pay for the costs associated with a terminal, chronic, or critical illness.  The terminal and critical illness riders pay a lump sum distribution; the chronic illness rider accelerates up to 2% of the death benefit each month.  Actual payments, under the ABR riders are discounted and critical illness benefits vary depending upon the severity of the disease.  The uses of ABR benefits are not limited.  

Our Long-Term Care (LTC) will reimburse up to 2% of the death benefit per month towards incurred nursing home or home health care expenses or 1% for adult day care.  These acclerated death benefit payments are not discounted.

Our Extension of Benefits Rider (EBR) will reimburse up to 1% of the initial face amountof the policy towards incurred nursing home or home health care expenses or .5% for adult day care, once the death benefit is exhausted through the use of the ABR 2 (chronic care) or LTC riders.  Benefits will be paid under EBR for the lifetime of the insured as long as they remain eligible.  EBR may be purchased with Inflation Protection, which increases the monthly benefit by 5% compiunded for each year the coverage is in force.  Both LTC and EBR involve extra premium but the premium remains level as long as the policy is in force.  

Life Insurance
MONEY FOR YOUR FAMILY
A death benefit can be used to help pay off debts such as mortgage, fund college tuition, or supplement a spouse's income. 

You can increase or decrease your policy's death benefit as your personal or business needs change without having to purchase a new policy.  This valuable feature means that SecurePlus Provider may be the only policy you will ever need to buy. 

Guaranteed Insurability Rider allows you to increase your coverage without producing evidence of insurability during certain option periods.  The increase is based on your current age.

Accidental Death Benefit Rider pays and additional death benefit should you die as a result of an accident.  As long as your life insurance coverage remains in force, this rider will stay in force until the policy anniversary following your 70th birthday.

Children's Term Rider provides term life insurance coverage on all of your children until they reach age 23.  The rider covers any children born or adopted after the policy is issued, and any dependant stepchildren living in your home, all for just one fixed premium amount.

 

Other Insured Rider allows you to purchase renewable term life insurance for your spouse, child, or business partner.  You may add more than one Other Insured Rider to the same policy.

 

Unemployment Rider, available at no additional cost, allows you to waive your policy premiums for three months when you have been involuntarily unemployed from your full-time job.

SecurePlus® Paragon
(Life Insurance Company of the Southwest
)


 Financial Security

    ·  If anything happened to me, will my family be able to stay in our home?
    ·  Will there be enough money for them to maintain their lifestyle?
    ·  How can we maintain our lifestyle, meet our obligations,  still save  for
       retirement?
    ·  Will we be able to send our children to college?
    ·  How do I protect my business against the loss of a key employee?
 

Indexed Universal Life

    ·  Income-tax free death benefit for your beneficiaries.
    ·  Tax-deferred accumulation of cash value.
    ·  Interest earned based on the change in the S&P 500® Index.
    ·  A guaranteed minimum interest rate should the S&P 500® Index decline or remain  
        level.
    ·  Tax-free distribution of cash value through loans and withdrawals. 
    ·   Guarantees are dependant upon the claims-paying ability of the insurer.

* Contract loans and withdrawals will reduce the contracts cash value and death  benefit and may result in a taxable event.  Withdrawals up to the basis paid into the contract and contract loans thereafter would not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender.  This would not be true if the contract were classified as a Modified Endowment Contract (MEC), as all withdrawals would be considered taxable income. 


Expect more…Flexibility

· Improved access to your policy’s Cash Value.
· Access to death benefit value while you are still living.
· Adjust premium payments and insurance coverage as your needs change.

Life insurance is the only financial tool that creates an immediate reservoir of funds that, at the death of the Insured, can be used to pay off debt, replace lost income, and allow your loved ones to maintain their lifestyles. 
Indexed Universal Life Insurance is considered to be one of the most flexible types of life insurance available in the marketplace today.  Indexed Universal Life allows your to adjust the amount of insurance coverage and the premiums paid to meet your changing insurance needs.  You also have the opportunity to build cash value in your policy income tax deferred.  Cash value can be accessed during your lifetime to meet unexpected emergencies, take advantage of opportunities, or to supplement retirement income. 

Interest Crediting Strategies

Basic Strategy
All premiums are first paid into the Basic Strategy account.  Once enough premium has been paid to cover the monthly insurance deductions for the coming contract year, all additional premium dollars will be allocated to the interest crediting strategy allocation of your choice.  Premiums are allocated to the interest crediting strategies on the 21st day of the month.  The annual interest-crediting rate for the Basic Strategy is guaranteed to be not less than 2.5%.
Your Indexed Universal Life policy offers five choices of interest crediting options.  They include a Fixed Interest crediting strategy and four indexed crediting strategies. 

Fixed-Interest Strategy
Premium allocated to this strategy earn a rate of interest declared by the company, credited on a daily basis, and guaranteed for one year.  The minimum annual rate of interest credited to funds in the Fixed-Interest Strategy is 2.5%.

Indexed Strategies
Premiums allocated to the Indexed Strategies have interest credited based on changes in the S&P 500® Index.  Interest credits will be based on the Index Growth, Participation Rate, and Cap for your chosen strategy.  Your Indexed Universal Life Policy offers three Point-to-Point strategies and one Point-to-Average strategy.

Calculating Index Growth

Point-to-Point Strategy
Index growth equals the difference between the Index beginning value and index ending value, such difference divided by the index beginning value.

For example: Index beginning value = 1,000, Index ending value (on the same date one year later) = 1,150, Index Growth = 15% [(1150-1000=150) / 1000 = 15%].

Point-to-Average Strategy
Index growth equals the difference between the Index beginning value and the daily average, such difference divided by the Index beginning value.  (To find daily average, calculate the average of all the daily Index values over the 12-month period.)

For example: Index beginning value = 1000, daily average = 1100, Index Growth = 10% [(1100-1000=100) / 1000 = 10%].

Above examples are hypothetical only and do not represent actual Index changes, Participation Rates, or Caps.

Calculating Interest Credits
Once the Index Growth Percentage has been calculated, a Participation Rate and Cap are applied to determine how much will actually be credited to your account values.  The Participation Rate is the maximum percentage of the Index Growth that may be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, the full 10% may be used to determine interest earned.  If the Participation rate is 80%, 8 % is used in the calculation of interest earned [10% x 80% = 8%]

The Cap is the maximum Index Growth that will be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, but the Cap is set at 6%, 6% will be credited.
 
Upside Potential with Downside Income

Building tax-deferred cash value
Indexed Universal Life is a form of permanent life insurance, which combines pure insurance protection with the opportunity for cash value accumulation.  Premiums paid in excess of the cost of the pure insurance amount accumulate with interest, tax-deferred.  These values can be accessed during your lifetime through withdrawals or loans.

With Indexed Universal Life you have options regarding how interest is credited to your cash value.  You can choose to have a fixed interest rate applied or have interest credited based on changes in the S&P® 500 Index.  This kind of interest crediting strategy allows you to take advantage of changes in the market index without the risk of stock market losses.  Minimum interest guarantees built into your contract ensure that your cash value will not decline due to decreases in the index.
 
Premium Payments you can make regular, level payments; change payment amounts; or you can skip payments altogether (subject to the contract’s minimums and maximums).  It is important to remember that you need to make premium payments sufficient to keep the contract in force.  Paying higher premiums than are necessary (or required) can result in enhanced tax-deferred cash value growth and, ultimately, greater premium payment flexibility.

Death Benefit Options
As your death benefit needs change, your policies death benefit can be adjusted to meet those needs.  As your survivor protection needs grow, Indexed Universal Life provides the ability to increase your death benefit within your policy, thereby eliminating the need for multiple policies.  Additionally, as your needs shift toward accumulating assets for retirement, you may decrease your death benefit protection and direct your premiums toward cash-value build-up.

Accelerated Living Benefits
MONEY FOR A TERMINAL, CHRONIC OR CRITICAL ILLNESS:
Benefits may help pay nursing home care, home health care, adult day care, medical procedures, drug therapies, household expenses, and other quality of life expenditures.

 Our Accelerated Benefits Riders - available at no additional cost - allow you to access all or part of your death benefit to help pay for the costs associated with a terminal, chronic, or critical illness.  The terminal and critical illness riders pay a lump sum distribution; the chronic illness rider accelerates up to 2% of the death benefit each month.  Actual payments, under the ABR riders are discounted and critical illness benefits vary depending upon the severity of the disease.  The uses of ABR benefits are not limited. 

Our Long-Term Care (LTC) will reimburse up to 2% of the death benefit per month towards incurred nursing home or home health care expenses or 1% for adult day care.  These accelerated death benefit payments are not discounted.

Our Extension of Benefits Rider (EBR) will reimburse up to 1% of the initial face amount of the policy towards incurred nursing home or home health care expenses or .5% for adult day care, once the death benefit is exhausted through the use of the ABR 2 (chronic care) or LTC riders.  Benefits will be paid under EBR for the lifetime of the insured as long as they remain eligible.  EBR may be purchased with Inflation Protection, which increases the monthly benefit by 5% compounded for each year the coverage is in force.  Both LTC and EBR involve extra premium but the premium remains level as long as the policy is in force. 

Life Insurance MONEY FOR YOUR FAMILY
A death benefit can be used to help pay off debts such as mortgage, fund college tuition, or supplement a spouse's income.

You can increase or decrease your policy's death benefit as your personal or business needs change without having to purchase a new policy.  This valuable feature means that SecurePlus Provider may be the only policy you will ever need to buy. 

Guaranteed Insurability Rider allows you to increase your coverage without producing evidence of insurability during certain option periods.  The increase is based on your current age.

Accidental Death Benefit Rider pays and additional death benefit should you die as a result of an accident.  As long as your life insurance coverage remains in force, this rider will stay in force until the policy anniversary following your 70th birthday.

Other Insured Rider allows you to purchase renewable term life insurance for your spouse, child, or business partner.  You may add more than one Other Insured Rider to the same policy.
 
Unemployment Rider, available at no additional cost, allows you to waive your policy premiums for three months when you have been involuntarily unemployed from your full-time job.

Children's Term Rider provides term life insurance coverage on all of your children until they reach age 23.  The rider covers any children born or adopted after the policy is issued, and any dependant stepchildren living in your home, all for just one fixed premium amount.

Other Insured Rider allows you to purchase renewable term life insurance for your spouse, child, or business partner.  You may add more than one Other Insured Rider to the same policy.
 
Unemployment Rider, available at no additional cost, allows you to waive your policy premiums for three months when you have been involuntarily unemployed from your full-time job.

 

Expect more…Flexibility

  • Improved access to your policy’s Cash Value.
  • Access to death benefit value while you are still living.
  • Adjust premium payments and insurance coverage as your needs change.

Life insurance is the only financial tool that creates an immediate reservoir of funds that, at the death of the Insured, can be used to pay off debt, replace lost income, and allow your loved ones to maintain their lifestyles. 

Indexed Universal Life Insurance is considered to be one of the most flexible types of life insurance available in the marketplace today.  Indexed Universal Life allows your to adjust the amount of insurance coverage and the premiums paid to meet your changing insurance needs.  You also have the opportunity to build cash value in your policy income-tax deferred.  Cash value can be accessed during your lifetime to meet unexpected emergencies, take advantage of opportunities, or to supplement retirement income. 

Interest Crediting Strategies


Basic Strategy
All premiums are first paid into the Basic Strategy account.  Once enough premium has been paid to cover the monthly insurance deductions for the coming contract year, all additional premium dollars will be allocated to the interest crediting strategy allocation of your choice.  Premiums are allocated to the interest crediting strategies on the 21st day of the month.  The annual interest crediting rate for the Basic Strategy is guaranteed to be not less than 2.5%.

Your Indexed Universal Life policy offers five choices of interest crediting options.  They include a Fixed Interest crediting strategy and four indexed crediting strategies. 


Fixed-Interest Strategy
Premium allocated to this strategy earn a rate of interest declared by the company, credited on a daily basis, and guaranteed for one year.  The minimum annual rate of interest credited to funds in the Fixed-Interest Strategy is 2.5%.


Indexed Strategies
Premiums allocated to the Indexed Strategies have interest credited based on changes in the S&P 500® Index.  Interest credits will be based on the Index Growth, Participation Rate, and Cap for your chosen strategy.  Your Indexed Universal Life Policy offers three Point-to-Point strategies and one Point-to-Average strategy.





Calculating Index Growth

Point-to-Point Strategy
Index growth equals the difference between the Index beginning value and index ending value, such difference divided by the index beginning value.

 

For example: Index beginning value = 1,000, Index ending value (on the same date one year later) = 1,150, Index Growth = 15% [(1150-1000=150) / 1000 = 15%].

 

Point-to-Average Strategy

Index growth equals the difference between the Index beginning value and the daily average, such difference divided by the Index beginning value.  (To find daily average, calculate the average of all the daily Index values over the 12-month period.)

 

For example: Index beginning value = 1000, daily average = 1100, Index Growth = 10% [(1100-1000=100) / 1000 = 10%].

 

Above examples are hypothetical only and do not represent actual Index changes, Participation Rates, or Caps.

 

Calculating Interest Credits

Once the Index Growth Percentage has been calculated, a Participation Rate and Cap are applied to determine how much will actually be credited to your account values.  The Participation Rate is the maximum percentage of the Index Growth that may be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, the full 10% may be used to determine interest earned.  If the Participation rate is 80%, 8 % is used in the calculation of interest earned [10% x 80% = 8%]

 

The Cap is the maximum Index Growth that will be credited.  For example, if the Index Growth is 10% and the Participation Rate is 100%, but the Cap is set at 6%, 6% will be credited.

 

Upside Potential with Downside Income

Building tax-deferred cash value

Indexed Universal Life is a form of permanent life insurance which combines pure insurance protection with the opportunity for cash value accumulation.  Premiums paid in excess of the cost of the pure insurance amount accumulate with interest, tax-deferred.  These values can be accessed during your lifetime through withdrawals or loans.

With Indexed Universal Life you have options regarding how interest is credited to your cash value.  You can choose to have a fixed interest rate applied or have interest credited based on changes in the S&P® 500 Index.  This kind of interest crediting strategy allows you to take advantage of changes in the market index without the risk of stock market losses.  Minimum interest guarantees built into your contract ensure that your cash value will not decline due to decreases in the index. 

Premium Payments

You can make regular, level payments; change payment amounts; or you can skip payments altogether (subject to the contract’s minimums and maximums).  It is important to remember that you need to make premium payments sufficient to keep the contract in force.  Paying higher premiums than are necessary (or required) can result in enhanced tax-deferred cash value growth and, ultimately, greater premium payment flexibility.

Death Benefit Options

As your death benefit needs change, your policies death benefit can be adjusted to meet those needs.  As your survivor protection needs grow, Indexed Universal Life provides the ability to increase your death benefit within your policy, thereby eliminating the need for multiple policies.  Additionally, as your needs shift toward accumulating assets for retirement, you may decrease your death benefit protection and direct your premiums toward cash-value build-up.

Accelerated Living Benefits
MONEY FOR A TERMINAL, CHRONIC OR CRITICAL ILLNESS:
Benefits may help pay nursing home care, home health care, adult day care, medical procedures, drug therapies, household expenses, and other quality of life expenditures.

 
Our Accelerated Benefits Riders - available at no additional cost - allow you to access all or part of your death benefit to help pay for the costs associated with a terminal, chronic, or critical illness.  The terminal and critical illness riders pay a lump sum distribution; the chronic illness rider accelerates up to 2% of the death benefit each month.  Actual payments, under the ABR riders are discounted and critical illness benefits vary depending upon the severity of the disease.  The uses of ABR benefits are not limited.  

Our Long-Term Care (LTC) will reimburse up to 2% of the death benefit per month towards incurred nursing home or home health care expenses or 1% for adult day care.  These acclerated death benefit payments are not discounted.

Our Extension of Benefits Rider (EBR) will reimburse up to 1% of the initial face amountof the policy towards incurred nursing home or home health care expenses or .5% for adult day care, once the death benefit is exhausted through the use of the ABR 2 (chronic care) or LTC riders.  Benefits will be paid under EBR for the lifetime of the insured as long as they remain eligible.  EBR may be purchased with Inflation Protection, which increases the monthly benefit by 5% compiunded for each year the coverage is in force.  Both LTC and EBR involve extra premium but the premium remains level as long as the policy is in force.  

Life Insurance
MONEY FOR YOUR FAMILY
A death benefit can be used to help pay off debts such as mortgage, fund college tuition, or supplement a spouse's income. 

You can increase or decrease your policy's death benefit as your personal or business needs change without having to purchase a new policy.  This valuable feature means that SecurePlus Provider may be the only policy you will ever need to buy. 

Guaranteed Insurability Rider allows you to increase your coverage without producing evidence of insurability during certain option periods.  The increase is based on your current age.

Accidental Death Benefit Rider pays and additional death benefit should you die as a result of an accident.  As long as your life insurance coverage remains in force, this rider will stay in force until the policy anniversary following your 70th birthday.

Children's Term Rider provides term life insurance coverage on all of your children until they reach age 23.  The rider covers any children born or adopted after the policy is issued, and any dependant stepchildren living in your home, all for just one fixed premium amount.

 

Other Insured Rider allows you to purchase renewable term life insurance for your spouse, child, or business partner.  You may add more than one Other Insured Rider to the same policy.

 

Unemployment Rider, available at no additional cost, allows you to waive your policy premiums for three months when you have been involuntarily unemployed from your full-time job.