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Life Insurance
HELP PROTECT YOUR HOME, FAMILY AND INCOME
Life
insurance can
help protect
what’s important
to you
Product issued by
Life Insurance Company of the Southwest
®
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Cat No 62686 (0415)
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Help Protect your
home, family and income –
all in one policy
A house is one of the largest purchases you will
ever make, and your home mortgage will likely
be your largest financial obligation. Maintaining
adequate insurance protection will help your
family to keep their home should something
happen to you.
A life insurance policy from Life Insurance
Company of the Southwest (LSW) helps you to
protect your home and your family in case of
premature death or the financial devastation
of an illness that is terminal, chronic, critical
or a critical injury.
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By 2010,
medical bills were
the number one
cause of bankruptcy
in the
United States.2
Protection for Today and Tomorrow
In addition to the death benefit protection, the optional Accelerated Benefits
Riders1 (ABR) provide access to your death benefit while you are still alive if
you are diagnosed with an illness that is terminal, chronic, critical or a critical
injury. From blindness and heart attacks to Alzheimer’s and cancer, your
Life Insurance Company of the Southwest policy can be there to help.
Best of all, the protection comes at no additional cost
Use your accelerated benefit to cover any expense (with the exception
of chronic illness in the state of Massachusetts, which can only be used
to pay for expenses incurred for Qualified Long-Term Care services3),
including but not limited to:
• nursing home care
• drug therapies
• medical procedures
• home health care
• quality-of-life expenditures
• household expenses
• experimental medical treatments
1 Receipt of accelerated benefits will reduce the policy’s death benefit and cash
value (for policies with such values), may result in a taxable event and may
aﬀect a family’s eligibility for public assistance programs. Actual payments
are discounted since the benefit is received prior to death. Riders are optional,
may be subject to underwriting, exclusions and/or limitations and may not be
available in all states or on all products.
2 Laurie Garrett, a Senior Fellow for Global Health on the Council on Foreign
Relations: The Lancet, 2012.
3 Qualified Long-Term Care services: The necessary diagnostic, preventative, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance or
personal care services that are required by a chronically ill individual and are provided pursuant to a plan of care prescribed by a licensed health care practitioner.
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Why Life Insurance Company
of the Southwest?
Purchasing a life insurance policy may be one of the best decisions you
ever make because of the death benefit protection it provides your family.
With a life insurance policy from LSW, it can be so much more!
LSW’s Life Insurance protection oﬀers a combined aﬀordable solution that
can help provide protection for you and your family. This flexible package can
help protect your plans for today and tomorrow through:
• Death beneﬁt protection for your loved ones
• Optional living beneﬁts help to provide ﬁnancial security in the event
of a qualifying illness4
• The choice of Whole Life or Universal Life coverage that oﬀers the
potential for cash value accumulation or aﬀordable Term coverage
for a specific period of time, and
• Disability Income Rider to help with ﬁnancial obligations should you
become disabled5
All riders described herein involve an additional cost except for the ABR.
Riders may not be available on all policies and in all states.
We call it:
Life insurance you don’t have to die to use.
4 Living Benefits are provided by no additional premium Accelerated Benefit
Riders.
5 Certain occupations are ineligible for coverage. Disability riders stay in force
until the policy anniversary following the insured’s 65th birthday.
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The Choice
One of the first and most important decisions to make is whether to
choose Whole Life, Universal Life or Term coverage. For many situations,
term coverage may be the right decision for both your needs and your
budget. One important question to ask yourself is, “How long do I need
coverage?” If the answer is just until your mortgage is paid oﬀ, then
choosing Term coverage may be suﬃcient to meet those needs.
Term
If you are someone who is looking for coverage for a specified amount
of time at an aﬀordable cost, then Term may be the right solution for you.
If your situation changes and you should need permanent coverage, the
option to convert your term policy to a permanent Whole Life or Universal
Life policy also exists.
Whole Life
For those looking for strong guarantees: guaranteed death benefit protection
for life, guaranteed level premiums, guaranteed cash value accumulation, a
Whole Life policy may be the appropriate choice. Guarantees are dependent
on the claims-paying ability of the issuing company.
Universal Life
For people looking for more permanent protection, a Universal Life policy
may be the answer. A Universal Life policy does more than just provide a
death benefit, it also has the potential to build cash value for other needs
that may arise such as taking supplemental income through policy loans and
withdrawals for retirement or meeting other family life events that may occur.6
Regardless of what type of coverage you choose, life
insurance can help provide both flexibility and benefits
to help protect what’s important to you.
6 Policy loans and withdrawals will reduce the policy’s cash value and death
benefit and may result in a taxable event. Surrender charges may reduce the
policy’s cash value in early years.
7 Alzheimer’s Disease Education & Referral Center, U.S. Department of Health
& Human Services - 2012.
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As many
as 5.1 million
Americans have
Alzheimer’s
Disease.7
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Cash Value Accumulation
With your Whole Life or Universal Life insurance policy, you can enjoy the
potential for tax-deferred cash value accumulation. You can access your
cash value through policy loans and withdrawals to help achieve your
unique and personal objectives, including:
• Help your children pay for college
• For a down payment on a second home
• Take advantage of new opportunities
• Meet unexpected emergencies
Whatever your needs and goals may be, the cash value accumulation that
your whole life or universal life insurance policy may provide can help you
with your future plans. Cash value in a universal life insurance policy could
also be used to reduce or eliminate out of pocket premium payments.8
8 It is possible that coverage will expire when either no premiums are paid
following the initial premium, or subsequent premiums are insuﬃcient to
continue coverage.
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Living Benefits
Accelerated Benefits Riders 11
The optional Accelerated Benefits Riders
are an exceptional benefit – available at no
additional cost – that allows you to accelerate
all or part of your death benefit to help with
costs from an illness that is terminal, chronic,
or critical or a critical injury.
Each
year, about
795,000 people
suffer a stroke in
the US.10
When Accelerated Benefit Riders are added to a term life insurance policy, the
ability to accelerate the death benefit will end when the life insurance policy is
terminated.
There is no restriction placed on the use of the accelerated benefit with the
exception that ABR proceeds for chronic illness in the state of Massachusetts
can only be used to pay for expenses incurred for Qualified Long-Term Care
services.
9 American Heart Association, Heart Disease & Stroke Statistics 2012 Update.
100 LSW Accelerated Benefit Riders - form series 8052, 8095, 8165, 8766, ICC10-8844,
20287, 20288, ICC15-20287, ICC15-20288, ICC13-8165.
Riders are optional, may be subject to underwriting, exclusions and/or limitations
and may not be available in all states or on all products. Receipt of accelerated
benefits will reduce the cash value and death benefit, may be a taxable event and
may aﬀect a family’s eligibility for public assistance programs. Please consult
your personal tax advisor to determine the tax status of any benefits paid
under this rider and with social service agencies concerning how receipt of
such a payment will aﬀect you, your spouse and your family’s eligibility for
public assistance. The accelerated benefits oﬀered under this rider are intended
to qualify for favorable tax treatment under the Internal Revenue Code of 1986.
Whether such benefits qualify depends on factors such as your life expectancy
at the time benefits are accelerated or how the benefits are used.
The actual payment you receive will be less than the portion of the death benefit
accelerated because the benefits are paid prior to death. Values are based on
a current interest rate and mortality rates. There is an initial administrative fee
at the time the rider is exercised. We currently limit the amount of death benefit
that may be accelerated under all contracts made over the entire lifetime of
the insured to $1,500,000 for critical illness or critical injury, and $1,000,000
for terminal illness or chronic illness. We reserve the right to change this
limit in the future; however the limit will never be less than $500,000. Other
restrictions, limitations and waiting periods may apply.
Our Terminal Illness riders allow for the payment of a portion of an insured’s
death benefit, on a discounted basis, if the insured has an illness or chronic
condition which can reasonably be expected to result in death in 24 months
or less. There is no additional premium for this rider.
Our Chronic Illness and Covered Chronic Illness riders allow for the payment
of a portion of an insured’s death benefit, on a discounted basis, if the insured
is Chronically Ill. A chronic illness is defined as one that leaves you unable to
perform, without substantial assistance, two of the six normal activities of daily
living for a period of at least 90 consecutive days due to a loss of functional
capacity or requires substantial supervision to protect oneself for a period of
90 consecutive days from threats to health and safety due to severe cognitive
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impairment. The six activities of daily living include bathing, continence,
dressing, eating, toileting, and transferring. There is no additional premium
for this rider.
Our Critical Illness or Critical Injury riders allow for the payment of a portion of
an insured’s death benefit, on a discounted basis, if the insured is critically ill or
critically injured. Covered critical illnesses are: diagnosed ALS (Lou Gehrig’s disease),
Aorta Graft Surgery, Aplastic Anemia, Blindness, Cancer, Cystic Fibrosis, End Stage
Renal Failure, Heart Attack, Heart Valve Replacement, Major Organ Transplant,
Motor Neuron Disease, Stroke, and Sudden Cardiac Arrest. Covered critical injuries
are: Coma, Paralysis, Severe Burns, and Traumatic Brain Injury. Covered critical
illness or critical injury conditions may vary by state. Covered Critical illness in the
state of MA includes: Coronary artery disease resulting in acute infarction vascular
or requiring surgery; End-stage Renal Disease; Major organ transplant; Permanent
neurological deficit resulting from cerebral vascular accident; Diagnosis of an invasive
malignancy characterized by the uncontrolled growth and spread of malignant cells
and the invasion of tissue. Cancer does not include: Stage A Prostate Cancer;
Any skin cancer, except invasive malignant melanoma into the dermis or deeper;
Pre-malignant lesions, benign tumors, or polyps; and Carcinoma in-situ.
There is no additional premium for this rider.
Accelerated Benefits Riders (ABR) vs. Long-term Care (LTC) Insurance
Certain states require advertising for ABRs to provide a comparison to the
benefits provided by LTC insurance. However, Accelerated Benefits provided
by the ABR riders are not long-term care insurance, and are not intended to
be the same as, or an alternative to, long-term care insurance.
This is a life insurance benefit that also gives you the option to accelerate some
or all of the death benefit in the event that you meet the criteria for a qualifying
event described in the policy. This policy or certificate does not provide long-term
care insurance subject to California long-term care insurance law. This policy or
certificate is not a California Partnership for Long-Term Care program policy.
This policy or certificate is not a Medicare supplement (policy or certificate).
ABR Riders are supplemental benefits that can be added to a life insurance policy
and are not suitable unless you also have a need for life insurance. Receipt of
benefits may reduce or eliminate the availability of other policy riders and benefits.
Benefits available are calculated at time of claim based on the age of the policy
and our expectation of your future mortality. The amount of Accelerated Benefit
available will depend on your life policy’s death benefit value when ABR benefits
are claimed. For policies in good standing, if ABR benefits are not used, policy
death benefits and other rider benefits are still available.
Long-term care (LTC) insurance is a form of health insurance, rather than an
optional rider on a life insurance policy, and as such, has no death benefit or
cash value. LTC insurance benefits are specified at the time of the contract.
LTC benefits are paid as a form of expense reimbursement for qualified longterm care expenses. By comparison, since ABR benefits can be used for any
reason, they are paid once qualifications are met, and do not require you to
provide receipt of specific expenses to qualify for the benefit. LTC premiums
vary based on the level and length of benefit chosen by the policyholder.
Premiums are paid on a recurring basis, and failure to pay premiums will
generally lapse the policy. If LTC benefits are not claimed, they are typically
forfeited. LTC insurance policies may oﬀer non-forfeiture benefits for
additional premium.
This is a solicitation of insurance. An insurance agent may contact you.
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Family Protection
Currently,
one in four
deaths in the
United States is
due to cancer.12
If you rely on two incomes, as so many families do, you can apply for coverage
for both spouses under this policy. The optional Other Insured Rider [form series
8057,8535] oﬀers term insurance protection for your spouse.
You can also select the optional Children’s Term Rider [form series 8056]
to provide life insurance coverage for all of your children until they reach
the age of 23. Your child can convert this coverage to his or her own
individual policy.
Disability Income Rider coverage is also available to help protect both you
and your spouse’s income. Optional riders oﬀer a choice of a two-year or
five-year benefit period.
12 Cancer Statistics, 2012, American Cancer Society.
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Disability Benefits
Disability benefits can help meet financial obligations such as your
mortgage and household expenses in the event you become disabled:
Disability Income Rider13 [form series 8054, 8065]
The Disability Income Rider is available should you become disabled
and unable to work. It pays a fixed monthly benefit amount to help you
cover expenses that you may no longer be able to meet while not working.
Depending on your disability and needs, there is either a Two-Year
Disability Rider or a Five-Year Disability Rider.
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Customizing Your Coverage
All in all, life insurance can help provide security and help accomplish
goals for you and your family. Your death benefit can be used to pay oﬀ
debts such as a mortgage, fund a college tuition or supplement a spouse’s
income. With multiple options and riders to choose from, your agent can
custom design a policy for you.
Adjustable Death Benefits
Your life insurance policy provides the flexibility to increase or decrease
the death benefit as your needs change without having to purchase a
new policy.14
Guaranteed Insurability Rider [form series 8051]
If your needs shift and you need more coverage, this rider allows you to
increase protection without producing evidence of insurability during
certain option periods.
Accidental Death Benefit Rider [form series 8050]
If in the unfortunate event you should die as a result of an accident, this
rider pays an additional death benefit.15
Unemployment Rider [form series 8058]
If you were to involuntarily become unemployed from your full-time job,
this rider allows you to waive your policy premiums for three months.
Riders are optional and require additional premium unless otherwise noted.
Riders are not available in all states.
13 If the policy lapses while the benefit is being paid, it will be paid to you until
your disability ends.
14 Increases in coverage may require evidence of insurability.
15 This rider stays in force until the policy anniversary following your 70th
birthday, as long as your life insurance coverage remains in force.
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Compare our whole life and universal life insurance
policies to a traditional mortgage insurance policy:
Our Policy
Traditional Policies
Flexibility
✓
Structure your policy to meet
your needs
The mortgage determines
the structure
Choice
✓
You choose your beneficiary
The mortgage holder is the
beneficiary
Death
Benefit
✓
The death benefit goes to
your named beneficiary, they
choose how to use it
The death benefit
automatically goes to
the mortgage holder
Protection
✓
The death benefit does not
decrease automatically
The death benefit generally
decreases in step with the
outstanding mortgage debt
Portability
✓
You can take your policy with
you when you sell your home
or refinance
A traditional mortgage
protection policy is normally
tied to a specific mortgage
Cash Value
✓
If you choose a whole life
or universal life policy, your
policy can build cash value
for the future
Traditional mortgage policies
do not build any future value
Living
Benefits
✓
Optional Riders can provide
access to your death benefit
in case of a terminal, chronic,
or critical illness
No living benefits
Optional
Riders
✓
Optional riders can provide
benefits in case of disability
or unemployment
No disability or
unemployment benefits
Experience the Advantage of an LSW Life Insurance Policy
when addressing your mortgage protection needs.
17 American Heart Association, Heart Disease & Stroke Statistics 2012 Update.
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This year,
about 1.2 million
Americans will
have a coronary
attack.17
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Die
Too Soon
Become
Ill
Live
Too Long
Life Changes.
Protect It.
LSW Foundation Universal Life Insurance [form series 8640/8640ID] LSW
ProtectorLife Whole Life Insurance [forms series 20064, ICC12-20064, 20065,
ICC12-20065], along with LSW Level Term Life Insurance [form series 8119,
ICC13-8119, 8120, ICC13-8120, 8115-8117, 8119] and applicable riders are
underwritten by Life Insurance Company of the Southwest, Addison, Texas.
• We currently limit the amount of death beneﬁt that may be accelerated
under all accelerated benefit riders applying to the same insured. We
reserve the right to change this limit in the future, however the limit will
never be less than $500,000.
National Life Group® is a trade name representing various aﬃliates, which oﬀer
a variety of financial service products. Life Insurance Company of the Southwest
is a member of National Life Group.
Centralized Mailing Address: One National Life Drive, Montpelier, VT 05604
Home Oﬃce: Addison, TX | 800-732-8939 | www.NationalLife.com
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