Business Reducing Term Unique Product, Unique Opportunity FOR AGENT AND BROKER USE ONLY. NOT FOR USE...
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Transcript of Business Reducing Term Unique Product, Unique Opportunity FOR AGENT AND BROKER USE ONLY. NOT FOR USE...
![Page 1: Business Reducing Term Unique Product, Unique Opportunity FOR AGENT AND BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC 8510-4-07.](https://reader036.fdocuments.us/reader036/viewer/2022082422/56649e4c5503460f94b425f6/html5/thumbnails/1.jpg)
Business Reducing Term
Unique Product, Unique Opportunity
FOR AGENT AND BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC
8510-4-07
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The Opportunity…
Do you have business owner clientswho have…
Borrowed money for an expansion?
Recently purchased a business or practice?
Offered a guaranteed employment contract to a key employee?
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The Opportunity…is Guardian
Do you have the only domestic product solution designed to cover these obligationsin the event of total disability?
Yes – absolutely:Guardian’s
Business Reducing Term* product
Business Reducing Term, policy form AH55-A, is provided by The Guardian Life Insurance Company of America, New York, NY.
Product provisions and features vary from state to state.
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What is Business Reducing Term?
Insures against a total disability thatprevents your client from meeting fixed obligations*:
Business loans, where repayment depends on talents of a key individual
Purchase agreements
Salary or performance guarantee contracts
*financial obligations requiring periodic payments and expiring at a given time.
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Overhead Expense isNOT the right answer!
And, assigning personal IDI coverageto protect these obligations is ill advised
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A Disability Can Happen…
You’ve identified the need for businesslife insurance
But did you know? A male aged 35 years is 4.1 times more likely to
be disabled before age 65 than he is to die*
At age 45, the odds are 4.4 to 1*
Disability of the owner is a leading cause of small business failure***Commissioner’s Individual Disability Table, 1985, and Commissioner’s Standard Ordinary Mortality Table, 1980. Statistics vary depending on the applicant’s gender, age, occupation and medical history.
**LIMRA International
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BRT: The 100% Solution
BRT covers…
Loan obligations: up to 100% of the monthly payment
Employment contracts: up to 100% of the after-tax cost of contract payments
BRT coverage issued in addition to personal DI
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Selling Business Reducing Term
Find the obligation and you’ve found the sales
Owners and professionals know they are “on the hook”
Separate the specific loan obligation from other “overhead expenses”
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How Does BRT Work?
$25,000 $1,000
Issue Term Ends $0 Issue Term Ends $0
Full Amount Payable Until
Face Amount Monthly Indemnity
DECREASING TERM LIFE INSURANCE REDUCING TERM DISABILITY INSURANCE
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How Does BRT Work?
Conditionally renewable to end of specified term renewal refused only if lack of insurable
interest or reduction/termination of economic need for the policy
your obligation: conduct an annual review
Premiums are level & sex-distinct
Available in all states except FL, MT, NC, SC, VA
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How Does BRT Work?
Coverage lasts for a specified term5 to 30 yearspolicy term = length of the obligationcoverage cannot extend beyond age 60
Elimination Periods: 1, 2, 3, 6, 12 months
Benefits paid during disability up to the end of the specified term
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How Does BRT Work?
Benefits payable directly to the “loss payee” Loss payee = holder of the obligation Indemnity policy – not reimbursement
Issue ages: 18 to 55 (age last birthday)
Issue limits: Minimum: $1,000/mo. ($500 if other Guardian or Berkshire
coverage in force) Maximum: $22,500/mo.*
*Maximum available issue limit determined by duration of the financial obligation.
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BRT Maximum Issue Limits
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5 $22,500
6 $19,500
7 $17,100
8 $15,300
9 $14,100
10 $12,900
11 $12,000
12 $11,400
13 $10,800
14 $10,200
15 $ 9,600
16 $ 9,300
17 $ 9,000
18 $ 8,700
19 $ 8,400
20 $ 8,100
21 $ 7,860
22 $ 7,740
23 $ 7,500
24 $ 7,380
25 $ 7,260
26 $ 7,140
27 $ 7,020
28 $ 6,900
29 $ 6,780
30 $ 6,660
Term BRT Term BRT(In Years) Issue Limit (In Years) Issue Limit
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How Does BRT Work?
Total disability only “unable to perform all the substantial and material
duties of your occupation; and, you are not actually at work in any occupation or profession.”
Premiums waived during total disability lasting more than 90 days
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Applying for BRT is Easy
Proof of obligation loan agreement, employment contract, etc.
Streamlined medical underwriting
Use application form #DI AP-2003 California only: Guardian form #AP2-96 CA Applications at Berkshire e-Forms Center
Agency administrators will direct all BRT applications to the Spokane Underwriting unit Submit combination IDI & BRT applications to the
Pittsfield office
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Marketing & Sales Support
Client brochure (Pub1623)
Imprintable ads, flyers and pre-approach letters that can be viewed and ordered through the Marketing Tools Catalog available on www.berkshirelifetools.com
National Sales and Product Support Center: 866-590-8845, select option [email protected]
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Business Reducing Term
Disability Insurance toProtect Your Business
Obligations
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