Whats New in Life _amp; Health Products

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					               What’s New
             in Life & Health




March 2004                      National Life
    Product Suite

       Flex Account and NL Universal Life (NL UL)
         – For flexibility and tax-deferred growth
       NL Guaranteed Universal Life (NL GUL)
         – For guarantees and simplicity
       NL Term 100
         – For low cost permanent protection
       NL Term Life (10 and 20)
         – For temporary needs
       NL Critical Illness (NL CI)
         – For the many costs of a serious illness
2     What’s New – March 2004
                              New on Classic:
                              Guaranteed UL
                                 Term 100
                               Critical Illness


3   What’s New – March 2004
    Common To Flex Account, NL UL,
    NL GUL and NL Term 100
       Lower Level COI rates at $250,000 - $499,999
       Revised tax Net Amount At Risk (NAAR) for
        Level COI policies




4     What’s New – March 2004
    Flex Account, NL UL, NL GUL and NL Term 100
    Lower Level COI Rates for $250K-$499K
        Reductions in Level COI rates for death
         benefits of $250,000 to $499,999
          – As much as 28% lower

        Same COI rates as currently used for
         $500,000 to $999,999 band
        New rates also used for Level Lifetime
         Optional Benefits
          – available on Flex Account or NL UL policies, new or
            inforce


5      What’s New – March 2004
    Flex Account, NL UL, NL GUL and NL Term 100
    Lower Level COI Rates for $250K-$499K

       Example: Age 50            Old     New     Reduction
        Male Nonsmoker           11.46   10.60          8%
     Female Nonsmoker             8.40    7.99          5%
            Male Smoker          20.37   17.96         12%
         Female Smoker           15.62   12.20         22%

        Same percentage reductions for NL Term 100
          – COI rates are already 12%-15% lower


6      What’s New – March 2004
    Flex Account, NL UL, NL GUL and NL Term 100
    Lower Level COI Rates for $250K-$499K

       % Reduction Minimum Maximum Average   Median
             Male
                        0%     13%     5%       6%
        Nonsmoker
           Female
                        0%     25%     7%       6%
        Nonsmoker
             Male
                        0%     14%     6%       4%
           Smoker
           Female
                        0%     28%    12%      11%
           Smoker




8      What’s New – March 2004
 Flex Account and
 NL Universal Life
                      Flexibility and Tax-Deferred Growth




10   What’s New – March 2004
 Flex Account and NL Universal Life
 What’s New
      Level COI rates reduced up to 28% for death
       benefits of $250,000 to $499,999
      Performance Stabilizer
      Improved 10 Year R&C Optional Benefit rates
      First Year Investor Loan
      Mandatory Designated Deduction Account if
       GIA > 1 year chosen



11   What’s New – March 2004
 Flex Account and NL Universal Life
 Performance Stabilizer
      Growth above tax limits currently goes to
       Express Account, which has drawbacks
        – The transfer is taxable when the policy is in a gain
          position
        – Growth within Express Account is taxable
        – Premium tax applies (again) to money returning to
          the policy from Express Account
      The innovative Performance Stabilizer is
       designed to reduce the effects of real-life
       volatility in investment returns
        – Also available on most inforce policies issued since
          July 1998

12   What’s New – March 2004
 Flex Account and NL Universal Life
 Performance Stabilizer (continued)
      Annual growth of the Account Value (AV) is
       limited to keep the policy tax exempt
        – excess growth is removed and put into the
          Performance Stabilizer, generally to the later of age
          85 or the 10th policy year

      In years when the AV is less than the maximum
       exempt amount, the Performance Stabilizer is
       drawn down, which increases the AV
      Optional feature available at any time
        – cannot remove once elected

13   What’s New – March 2004
 Flex Account and NL Universal Life
 Performance Stabilizer (continued)
      Performance Stabilizer does not incur
       premium tax
      Amounts in the Performance Stabilizer
        – are not available for policy loans or Disability Benefit
          Payouts
        – do not impact the Net Amount At Risk for insurance
          charges or taxation
        – are forfeited upon death, lapse or policy surrender




14   What’s New – March 2004
                               Select here.




15   What’s New – March 2004
 Flex Account and NL Universal Life
 10 Year R&C Optional Benefit
      Uses the standard class rates of the new
       NL Term 10
      COI rates are lower for most ages
      Minimum issue age is now 0 (was 16)




17   What’s New – March 2004
 Flex Account and NL Universal Life
 First Year Investor Loan
      Investor Loans are now available in the first
       year, as soon as the $25,000 premium
       requirement is satisfied
      Maximum loan is now a formula rather than a
       fixed percentage
      Available for
        – Increasing death benefit with Level COIs
           • Flex Account and NL UL
        – Minimized death benefit with YRT COIs
           • Flex Account only (coming soon for NL UL)

18   What’s New – March 2004
 Flex Account and NL Universal Life
 Designated Deduction Account (DDA)
      DDA allows separation of deposits intended
       for insurance charges from deposits intended
       for investment
        – e.g., investing to earn a long-term interest rate

      DDA is 1 year Guaranteed Interest Account
       (GIA)
      DDA is now required before allocating any
       money to a GIA with a term of 2+ years
      All investment choices are available once the
       DDA holds 13 months of charges
19   What’s New – March 2004
                                 DDA used with:
                               Level with GIA > 1 yr
                               Guaranteed with DDA



20   What’s New – March 2004
   Investment and
                               Blended rate also
DDA growth rates shown
                                   available
      separately

21   What’s New – March 2004
   Investment and              Blended rate
DDA growth rates shown             also
      separately                 available
22   What’s New – March 2004
 NL Guaranteed
 Universal Life
                               Guarantees and Simplicity




23   What’s New – March 2004
 NL Guaranteed Universal Life
 Highlights
      A simplification of NL Universal Life and Flex Account
      Level, Guaranteed 10, Guaranteed 15 COI scales only
        – Same COI rates as NL UL and Flex Account
        – Guaranteed Surrender Amounts with G10, G15 scales
      Simplified
        – Death benefit = initial death benefit + savings
        – Higher credited rates instead of bonuses
      More guarantees
        – Premium tax deduction capped at 4%
        – Preservation of capital (fixed interest investments only)
        – Minimum interest rates as high as 4.2%


24   What’s New – March 2004
 NL Guaranteed Universal Life
 What’s New
      Level COI rates reduced up to 28% for death
       benefits of $250,000 to $499,999
      Mandatory Designated Deduction Account for
       all policies
      Projections now available on Classic CD
       platform
        – Can now model additional deposits and select the
          premium paying period
           • Example: 5-pay with Level 10 COI scale



25   What’s New – March 2004
 NL Term 100
                           Low Cost Permanent Protection




26   What’s New – March 2004
 NL Term 100
 Highlights
      A simplification of NL Guaranteed Universal Life
      Level, Level 10, Level 15 COI scales only
        – Guaranteed Surrender Amounts with L10, L15 scales

      Low Cost
        – COI rates 12-15% lower than NL GUL
        – Lower commissions than NL GUL

      Better than pure Term 100
        – Has a savings component which earns at least 1.2%


27   What’s New – March 2004
 NL Term 100
 What’s New
      Level COI rates reduced up to 28% for death
       benefits of $250,000 to $499,999
      Projections now available on Classic CD
       platform
        – Can now model additional deposits and select the
          premium paying period
           • Example: 5-pay with Level 10 COI scale




28   What’s New – March 2004
 NL Term Life
                               Temporary Needs




29   What’s New – March 2004
 NL Term 10 and 20 (Renewable and Convertible)
 What’s New
      Lower premiums
      Higher commissions
      New preferred classes


      Note: projections run only on the Classic CD
        – Coming soon to SaveTax




30   What’s New – March 2004
 NL Term 10 and 20
 Premiums
      Significant reductions in premiums for most ages
      Some increases, mostly at older ages
      Sample T10 premiums for $500,000 for a male
       nonsmoker:
        Age   Risk Class Current New Reduction
        30    Elite          330 290      12%
        30    Standard       435 375      14%
        50    Elite          895 850       9%
        50    Standard     1,205 1,100     9%


31   What’s New – March 2004
 NL Term 10 and 20
 Commissions
      Significant improvements to first year
       commissions
        – Term 10 improved from 37.5% to 40%
        – Term 20 improved from 45% to 50%

      No changes to renewal commissions
        – 2.5% in years 2-5 and 1.8% in years 6+




32   What’s New – March 2004
 NL Term 10 and 20
 Underwriting
      5 risk classes instead of 6
        – Dropped the rarely used Elite Smoker class

      Revised criteria for each risk class to better
       suit the market
      Some changes to the Age and Amount tables




33   What’s New – March 2004
 NL Critical Illness
                For the Many Costs Of A Serious Illness




34   What’s New – March 2004
 NL Critical Illness
 Highlights
       Market leading definitions for 21 covered illnesses
       Best Doctors® to confirm the diagnosis, find the best
        doctor and provide a medical concierge
       Competitive premiums and commissions
       Client-friendly information on your SaveTax website
       Premium Types
         – Term 10, Term to 75, Term to 75 with Return of Premium
       Coverage amounts from $50,000 to $2,000,000
       Optional Benefits: Waiver of Premium, Children’s CI
        Benefit (16 illnesses)

35    What’s New – March 2004
 NL Critical Illness
 What’s New
       Product name changed from “e-Critical Illness”
       Projections now available on Classic CD
        platform




36    What’s New – March 2004
                  Questions


37   What’s New – March 2004
 Questions

      ???




38   What’s New – March 2004
                  Summary


39   What’s New – March 2004
 Summary

      Flex Account and NL Universal Life (NL UL)
        – For flexibility and tax-deferred growth
      NL Guaranteed Universal Life (NL GUL)
        – For guarantees and simplicity
      NL Term 100
        – For low cost permanent protection
      NL Term (10 and 20)
        – For temporary needs
      NL Critical Illness (NL CI)
        – For the many costs of a serious illness
40   What’s New – March 2004
Strength Through
  Performance

				
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posted:3/29/2013
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