HomeMy WebLinkAboutVoluntary Life Insurance GuidePLC.6311 (07.14)Protective Custom ChoiceSM UL UNIVERSAL LIFE INSURANCE Product Guide
You worry about what would happen to your loved ones
in the event of your untimely death. You want to make
sure they would be financially secure, and life insurance
is a great way to address that concern. In fact, life
insurance is a valuable planning tool that can be part of
your financial planning strategy or can stand alone as a
single source of protection. Properly planning for your
life insurance needs today can help provide a lifetime of
financial security for your loved ones tomorrow.
That’s why we’re proud to offer Protective Custom
ChoiceSM UL, a universal life insurance policy designed to
offer you affordable protection that meets your specific
needs today, with options and flexibility in the event your
needs change in the future.
Protection for
Your Loved Ones
Life insurance is about protection. It helps provide security for your loved ones
when they need it most. Providing them with this protection can help ensure they
do not face the added burden of financial pressures should something happen
to you.
Death Benefit Coverage
The death benefit from your Protective Custom
Choice UL policy can be paid directly to your
beneficiaries to help them replace your income
and maintain their standard of living. It may also
help cover things like burial and final expenses
and recurring or future expenses.
With Protective Custom Choice UL, you also have
the option of adjusting your death benefit amount
without having to buy a new, separate policy, if
your needs change. After the first policy year, you
may increase the death benefit amount, subject to
underwriting, or decrease it subject to minimums
and charges after the third policy year.
Your death benefit coverage can even be guaranteed
up to your lifetime, meaning your policy will not lapse
as long as your planned premiums are paid.1
1 Lapse protection guarantees the policy death benefit for
the duration of the guarantee and does not cover cash or
surrender value. Loans, withdrawals, and other policy and
premium changes will affect the cost and length of protection.
Failure to make premium payment as planned may cause
the policy to lose lapse protection and premiums required to
restore it could be significantly higher. Refer to the policy and
endorsements for complete terms, conditions and limitations.
DEATH BENEFIT
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PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
Custom Options for
Your Individual Needs
At Protective Life, we understand that everyone’s situation is different and that
needs often change over the course of time. That’s why Protective Custom
Choice UL offers options and flexibility to meet your specific needs and goals.
Initial Level Benefit Period Options
With Protective Custom Choice UL, you can
customize the duration of your life insurance
coverage. You choose the amount of coverage you
want, and an initial level benefit period of anywhere
from 10 years all the way up to your lifetime.
During this time, as long as you pay the scheduled
premiums, your death benefit is guaranteed to
remain level and your policy will never lapse.2
After your initial level benefit period ends, your
guaranteed death benefit will begin to decrease
while your premium payment amount remains level.
The death benefit amount will decrease each year
until it reaches the minimum of $10,000. At that
point, your premiums will increase each year.
You have the option to exchange your policy for
a permanent universal life insurance option from
Protective Life anytime in your first 20 policy years
up to age 70, without going through more medical
exams. If your needs change and you want to
maintain your current death benefit beyond the initial
level benefit period, you may exercise this option.
2 In order for the lapse protection to be in force, accumulated premiums paid (less pro rata adjustments for loans and withdrawals)
must be equivalent to or greater than the accumulated Minimum Monthly Guaranteed Premiums.
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CUSTOM OPTIONS
Mary, age 35, is married with two sons, ages
10 and 12. She wants to maintain life insurance
coverage until her youngest son is 25, to make
sure her children are protected through their college
years. Once the boys are grown, Mary anticipates
her need for life insurance will decrease over time.
After talking with her financial professional about
her needs, Mary purchases a $500,000 Protective
Custom Choice UL policy with a 15-year initial level
death benefit period.
POLICY
YEAR
DEATH
BENEFIT
ANNUAL
PREMIUM
1 – 15 $500,000 $240.41
16 $210,671 $240.41
20 $136,835 $240.41
30 $ 50,965 $240.41
40 $ 21,471 $240.41
50 $ 10,000 $332.52
Effective as of August 18, 2014.
Assumes female age 35, preferred.
Any time during her first 20 policy
years, Mary can choose to exchange
her Protective Custom Choice UL
policy for a more permanent policy
with a level death benefit and
premium amount—without needing
to prove her insurability through
medical exams.
Beginning in year 16, Mary’s death
benefit amount begins to decrease
each year, but her annual premium
remains the same.
Mary’s death benefit
and annual premium
amount remain level for
her 15-year initial level
death benefit period.
Once Mary’s death benefit has reached
$10,000, it will no longer reduce.
However, the annual premium to
maintain the policy will begin to increase.
Consider This Example:
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PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
POLICY
YEAR
DEATH
BENEFIT
ANNUAL
PREMIUM
1 – 81 $250,000 $1,686.10
Tom is a 40-year-old single father with a young daughter. He
has a small amount of life insurance through his job, but wants to
supplement that coverage with an individual life insurance policy.
Tom also wants to make sure the life insurance coverage lasts for
his entire lifetime.
After talking with his financial professional about his situation, Tom
purchases a $250,000 Protective Custom Choice UL policy with a
lifetime level death benefit period.
Effective as of August 18, 2014. Assumes male age 40,
preferred, with premiums paid for lifetime (age 121).
Tom’s death benefit
and annual premium
amount will remain
level for his lifetime,
guaranteeing the
protection he wants
for his daughter.
Consider This Example:
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PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
Premium Flexibility
We all have different financial needs, responsibilities and limitations.
And because our lives are always changing, flexibility is a must-have.
With Protective Custom Choice UL, you also have the option of premium flexibility. You can choose to pay a
level premium for your lifetime, for a certain period of time, or you can even adjust premiums to correspond
with your expected income level.
As your personal situations change, your budget for life insurance premiums might change also. For example,
you could pay a lower premium amount in the first few years of your policy, then pay more in the following
years if you expect your income to increase after a job promotion.
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PREMIUM FLEXIBILITY
Consider This Example:
Joe is a 45-year-old business executive with a wife and
two teenage children. He wants to ensure life insurance
protection for his family until his children are finished with
college. However, he wants to keep his expenses as low
as possible for the next few years, and would prefer to pay
a lower premium amount during that time.
After talking with his financial professional, Joe purchases
a $500,000 Protective Custom Choice UL policy with a
10-year initial level death benefit period and a flexible
premium plan custom designed to work with his specific
needs.
POLICY
YEAR
DEATH
BENEFIT
ANNUAL
PREMIUM
1 – 5 $500,000 $358.59
6 – 10 $500,000 $535.06
11 $278,247 $431.49
15 $180,728 $431.49
20 $103,697 $431.49
25 $ 58,678 $431.49
30 $ 32,207 $431.49
40 $ 10,294 $431.49
41 $ 10,000 $469.03
Effective as of August 18, 2014. Assumes male age 45, preferred.
If Joe decided he needed to
maintain his $500,000 in coverage
for more than 10 years, he could
choose to exchange the policy to
something permanent. This option is
available at the end of the initial level
benefit period, or anytime in the first
20 policy years up to age 70.
Beginning in year 11, Joe’s death
benefit amount begins to decrease
each year, but his annual premium
remains the same.
Joe worked with his financial
professional to create a
custom payment plan that
increased over time, allowing
Joe to pay less for the first
five policy years.
Once Joe’s death benefit has reached $10,000,
it will no longer reduce. However, the annual
premium to maintain the policy begins to increase.
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When you apply for a Protective Custom Choice
UL policy, you will be classified in an underwriting
category as Select Preferred, Preferred, Non-
Tobacco or Tobacco. This classification will be based
on your current health and medical history and will
also determine your policy rates. Each initial level
benefit period also has issue age restrictions.
The minimum policy face amount (death benefit)
is $100,000. This applies to all issue ages and all
underwriting classes. There is no set maximum face
amount. After your initial level benefit period, the
minimum death benefit amount is $10,000.
There are certain fees and charges associated with
a Protective Custom Choice UL policy. The premium
load is a charge deducted from your premium
payments before they are applied to your policy.
While your policy is in force, all payments will be
subject to a 25% premium load. An administrative
charge of $5.50 will also be deducted monthly, in
addition to a monthly expense charge and monthly
cost of insurance charge which vary based on your
policy details.
About Protective
Custom Choice UL
10-Year Plan 18 – 75
15-Year Plan 18 – 70
20-Year Plan 18 – 65 (18 – 63 for Tobacco class)
25-Year Plan 18 – 55 (18 – 52 for Tobacco class)
30-Year Plan 18 – 55 (18 – 43 for Tobacco class)
Lifetime Plan 18 – 85 (18 – 75 for Select Preferred class)
PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
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Additional Options to
Customize Your Coverage
Because Protective Custom Choice UL is designed for maximum flexibility, it
offers a wide variety of benefits and riders to help fill any gaps in your long-term
plans.
Accidental Death Benefit Rider
Accidents, or unintentional injury deaths, are the number one cause of death
for all Americans under age 45.3 The Accidental Death Benefit Rider could,
therefore, be a good way to supplement your policy’s coverage. This rider can
provide even more life insurance coverage and increase the death benefit paid
to your beneficiaries if your death results from an accident.
Applicants ages 18 – 60 are eligible for the Accidental Death Benefit Rider,
with coverage and premiums stopping at age 70. Your additional coverage
can range from $1,000 up to $250,000.
Maximum substandard rating: Table 4
3 National Vital Statistics Reports. Deaths: Preliminary Data for 2011; October 10, 2012.
Actual terms and conditions contained in each rider govern all benefits provided. Unless otherwise noted, these optional benefits
and riders are available at additional cost. Assumes medical and financial underwriting qualifications at time of initial application.
May not be available in all states.
PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
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Children’s Term Life Insurance Rider
By considering life insurance coverage, you are already looking out for the
financial needs of your loved ones. But what about starting your children out
on the right path in life? In addition to the base policy’s coverage for yourself,
we also offer a Children’s Term Life Insurance Rider to cover the lives of your
children. You can use this rider to provide death benefit protection at the time
your policy is issued for all natural and adopted children and stepchildren
ages 15 days through 18 years. The rider also covers future children from
age 15 days or date of adoption prior to age 18.
The Children’s Term Life Insurance Rider provides term coverage up to age
25, the expiry date of the rider or termination of the policy—whichever is
earlier—for all covered children of the insured. The annual premium is a fixed
amount and remains constant, regardless of the number of children covered
under the rider. Coverage is available in $1,000 increments ranging from
$1,000 up to $20,000.
After the covered child reaches age 25, he or she can maintain life insurance
coverage by converting to a permanent life insurance policy from Protective
Life for up to five times the amount of the Children’s Term Life Insurance
Rider coverage.
Applicants ages 18 – 65 are eligible for the Children’s Term Life Insurance
Rider.
Maximum substandard rating: Table 4 (base insured), Table 2 (child)
OPTIONAL BENEFITS ENDORESEMENTS AND RIDERS
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Disability Benefit Rider
When purchasing a life insurance policy, you want to be absolutely certain the
death benefit protection remains available to your loved ones for the period
of time you’ve specified. Life often brings unexpected turns, however. That’s
why we offer the Disability Benefit Rider, which can help you be even more
prepared and ensure your policy premiums are paid if you face the hardship
of total disability and are unable to work. With this rider, you can specify a
monthly benefit amount to be paid toward your policy premium, allowing
you to maintain life insurance coverage. The gross monthly benefit amount is
credited to your policy after you have been totally disabled for six months and
meet all conditions of the rider. You will continue to receive benefits from this
rider for as long as your total disability continues and all conditions of the rider
are met. The Disability Benefit Rider is available for applicants ages 18 – 55,
and rider coverage ends at age 60.
Maximum substandard rating: Table 4
PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
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The ExtendCare Rider is only available if you choose the Protective Custom Choice UL Lifetime Plan.
ExtendCareSM Rider
Although life insurance is typically used to protect and provide for your loved
ones after you’re gone, we understand there are times when you might need
to put your policy to good use while you’re still living. In case you are ever
diagnosed with a chronic illness, our ExtendCare Rider allows you to access
your policy’s death benefit amount to help you manage the financial impact
of your illness without depleting your savings. After qualifying for the rider,
you can receive a monthly benefit amount accelerated from your policy’s
death benefit. “Chronically ill” is defined as being unable to perform at least
two of six Activities of Daily Living (bathing, dressing, toileting, transferring,
continence, eating) without assistance for 90 days, or requiring supervision
for protection against health and safety threats due to cognitive impairment.
ExtendCare is available only at issue for applicants with ages 20 – 80. At the
time of issue, you select either a 3-month or 12-month waiting period and
also select a maximum monthly benefit amount between $1,000 and $9,900,
not exceeding 5% of your base policy’s death benefit amount.4 The lifetime
maximum benefit amount available to you is 100% of your policy’s death
benefit up to $5 million.
Maximum substandard rating: Table 4 and must meet all medical
underwriting eligibility criteria
See the ExtendCare Consumer Guide in your kit for more details.
ExtendCare benefits are intended to be received on a tax-favored basis. The
ExtendCare Rider is intended as a non-medical supplement to traditional long-term
care policies and riders. The tax treatment of life insurance is subject to change. Neither
Protective Life nor its representatives offer legal or tax advice. Individuals should consult
their attorney or tax advisor regarding their individual situation.
The ExtendCare rider falls under IRC Sec.101(g) Accelerated Death Benefit guidelines
and does not fall under health regulations. This differentiation could affect eligibility
for public assistance programs such as Medicaid, Supplemental Income, or others.
Purchasers should consult a qualified advisor along with legal or tax advisor to
determine if the rider will affect their initial or continued eligibility for public assistance
programs or other tax-related decisions.
4 Maximum monthly benefit amounts are subject to change.
OPTIONAL BENEFITS ENDORESEMENTS AND RIDERS
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Actual terms and conditions contained in each rider govern all benefits provided. Unless otherwise noted, these optional benefits
and riders are available at additional cost. Assumes medical and financial underwriting qualifications at time of initial application.
May not be available in all states.
Income Provider Option Endorsement
With a typical life insurance policy, you know that your loved ones will receive
the death benefit amount in one lump sum after you die. That might help
with immediate and short-term needs, but what about help for ongoing
financial expenses? With the Income Provider Option, you have the ability to
select a guaranteed income stream of up to 30 years as your death benefit
payout. In addition, an initial lump-sum payment is also available to help cover
immediate obligations, such as final expenses and debt.
The Income Provider Option not only gives you more flexibility and control
over your death benefit, but it is available at no extra cost at policy issue.
Adding it to your policy could even result in lower premiums than a traditional,
lump-sum death benefit policy. You may change the death benefit schedule if
needs or plans change during your lifetime, but your beneficiaries will not be
able change the schedule after your death.
See the Income Provider Option Consumer Guide in your kit for more
details.
A portion of periodic payments under the Income Provider Option may be reported as
taxable income to the beneficiary. Please consult your attorney or tax advisor regarding
your individual situation.
Terminal Illness Accelerated Death Benefit Endorsement
Being diagnosed with a terminal illness can take a serious emotional and
financial toll on you and your loved ones. Our Terminal Illness Accelerated
Death Benefit is included in your policy at no extra charge to help you cope
with those emotional and financial costs. If you become terminally ill, this
benefit can accelerate up to 60% of your policy’s death benefit, or $1 million,
whichever is less. While there is no cost for this benefit, your death benefit is
reduced by the amount paid plus accumulated interest at a rate specified in
the endorsement.
Not available in all states. State variations may apply. Please review the endorsement for
complete terms, conditions and limitations.
PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
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What Happens Next?
Your financial professional will ask you to sign
some forms and might need to ask a few medical
questions. This is also when you will complete the
application and select your face amount and any
optional benefits or riders.
In most cases, a medical professional will
then contact you to schedule a life insurance
physical examination, usually completed in
your own home.
At this point, your application will be sent to
Protective Life for the underwriting process.
This is where we review the information on
If you decide a Protective Custom Choice UL policy is right for you,
the application process begins.
your application and the results of your physical
examination. Depending on your medical history
and exam results, medical records or additional
underwriting requirements may be required to
determine your health risk and qualification for the
policy. This process generally takes a few weeks.
If approved, you will receive a copy of your policy.
You should file this with your other important
documents and also notify your beneficiaries.
To retain the guarantee of coverage, you should
pay your premiums according to the amount
and schedule you set.
It is important to regularly review your policy and annual report
to make sure your strategy is still aligned with your goals.
PROTECTIVE CUSTOM CHOICE UL PRODUCT GUIDE
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Protect Tomorrow.
Embrace Today.TM
Universal life insurance can provide a variety of benefits
and features that may be appropriate for your financial
circumstances.
Protective Custom Choice UL can specifically offer you
options to create affordable life insurance protection that
meets your specific needs today, with flexibility to help
provide continuing protection should your needs change
in the future.
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www.protective.com
Protective Custom Choice UL (UL-22) is a universal life insurance policy issued by Protective Life Insurance Company, Birmingham, AL. Policy
form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to
underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age of sex. In Montana, unisex rates
apply.
The tax treatment of life insurance is subject to change. Neither Protective Life nor its representatives offer legal or tax advice. Please consult
with your legal or tax advisor regarding your individual situation before making any tax-related decisions.
All payments and all guarantees are subject to the claims-paying ability of Protective Life Insurance Company.
PLC.6311 (07.14)