PRODUCT: Premier Term life insurance
COMPANY: Midland National Life Insurance Company
BEST RATING: A+ (Superior)
AVAILABILITY: Coverage is available through Midland National Life-appointed insurance agents.
FOCUS: Critical and chronic illnesses like heart disease, stroke, cancer and diabetes are among the leading causes of death and disability in the U.S.
As many as seven out of ten deaths result from chronic illness, according to the Centers for Disease Control and Prevention—making living benefits all the more important.
Midland National Life Insurance Company responds by adding accelerated death benefit endorsements for critical, chronic and terminal illness to its Premier Term life insurance product. These new living benefits allow a policyholder to access the death benefit at a time when they may need it most—when diagnosed with a qualifying serious illness.
“This release is an enhancement to the product and complements other sales strategies such as supplemental retirement by maintaining the integrity of the accumulation policy,” explains Jerry Blair, chief distribution officer of Sammons Financial Group’s life division.
The endorsements, which can now be added to eligible Premier Term policies at the time of issue for no additional premium, strengthen Midland National’s Premier Term life insurance product, which is fully equipped with competitive rates, guaranteed convertibility and an easy application process through ExactApp.
COVERAGE DETAILS: Endorsement features include a maximum accelerated amount of $2 million—the lifetime maximum for critical, chronic and terminal illness combined per policy; an increase in terminal illness limits to 90% or $1 million; and that qualifying chronic illnesses don’t have to be permanent.
“After an elimination period, we pay benefits to the policyowners on an indemnity basis versus a reimbursement plan,” says Blair, who notes that insureds may use the funds however they choose. “Critical benefits have been paid out in as soon as 10 days.”
Accelerated death benefits are subject to eligibility requirements. The face amount will reduce by the face amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the face amount accelerated. An administrative fee applies for any accelerated death benefit election.
UNDERWRITING: Premier Term is available for 10-, 15-, 20- and 30-year level premium guarantee periods, depending on the issue age. Premiums are guaranteed to remain level for the initial 10-, 15-, 20- or 30-year period. After that, premiums will increase annually, but will never exceed the guaranteed annual renewal premium.
MINIMUM PREMIUM: N/A.
TARGET: “Premier Term is designed to provide low rates for clients who are seeking death benefit protection only,” Blair explains. “Term life insurance is designed to be suitable and affordable for all types of individuals and purposes, with included living benefits for critical, chronic and terminal illness.”
COVERAGE TERRITORY: U.S., with the exception of California, New York, the Mariana Islands, British Virgin Islands and Virgin Islands.
CONTACT: Midland National Life Insurance Sales Support, 800-843-3316, ext. 32150.
Jacquelyn Connelly is IA senior editor.