Fidelity Life AssociationProducts & Profitability Overview

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INTRODUCTION OF NEW PRODUCT – RAPID DECISION SENIOR LIFE Released JANUARY 2013

January 2013Jason Panitch

Fidelity Life Association

Mission Statement• Insurance coverage of exceptional value and ease.Vision• To serve Middle America through delivering fairly valued, easy to understand life

insurance products in a simple, efficient sales transaction. • Our goal is to make it easy to purchase and acquire life insurance; whether it be

online, over the phone or face-to-face. – We want consumers to have a choice of how they prefer to purchase

insurance. • We endeavor to provide:

– Expert guidance, convenience and choice to consumers seeking the best insurance solutions available

– Industry leading technology that enables superior customer experiences– A comprehensive set of resources that enable the success of insurance

producers– Unrelenting commitment to efficiency in the insurance process

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Economics of Life Insurance

• These Non-med, Fully Underwritten Term Life products and systems have revolutionized how agents can now sell low face amount life insurance easily and fast!!!

– Face to face sales – not necessary • Rapid App: Online application system for phone sales

– Paper applications – not necessary• Rapid App: Online application system for phone sales

– Parameds, APS – not necessary• Rapid Decision Underwriting

– Long underwriting periods – not necessary• Rapid Decision Underwriting

– Case Management – not necessary• Rapid Decision Underwriting and Agent interface

– Policies issued in weeks…or months – not necessary• Rapid Decision Underwriting

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Simplified Issue Term Life Insurance up to $250,000 • Level death benefit term life insurance, renewable to age 95• Guaranteed annual renewable term (ART) rates after initial level term • Approvals within 24 to 48 Hours - MIB, MVR, Rx• Non Medical Underwriting: No Blood, No Urine, No APSPremium classes available: Male/Female• Standard Non-Nicotine ~ Standard Nicotine

Issue Limits (Age last birthday) Term Issue Age Minimum Maximum10-year 18–65 $25,000 $250,00015-year 18–60 $25,000 $250,00020-year 18–55 $25,000 $250,00030-year 18–45 $25,000 $250,000

Optional Riders available• Dependent Child Rider: $5000 to $25,000 for eligible dependents

– Expires at child’s age 23 or Insured’s age 65, whichever is earlier.• Accidental Death Benefit Rider: $25,000 to $250,000 available

– Issued ages 20–65, expires at age 80

Rapid Decision Express – Product Information

State Availability as of Jan 1, 2013:•All states except: DE, FL, MT •(all pending approvals- highlighted states forthcoming very shortly )•Please check Fidelity website for state approval updates•Product will not available in NY or WY

ONLY AVAILABLE VIA RAPID APP SUBMISSION:NO PAPER APPLICATIONS

Rapid Decision Express will be underwritten on a simplified issue, accept/reject basis.

•All medical questions must be answered “NO”

– Answers to all questions will be independently verified through MIB, Rx and MVR database checksQualifying Questions

1. Is the Proposed Insured completing this application and paying the premium? (Payor can only be Proposed Insured or Spouse)

2. Are you a legal U.S. resident and have you resided in the U.S. for more than 2years? (Must answer YES)

3. Do you have a valid U.S. Driver’s License? (Must answer YES)

4. In the past 12 months have you used any form of tobacco, nicotine or nicotine products? (YES = Std. Nicotine rate class)

5. Have you been diagnosed as having AIDS (Acquired Immunodeficiency Syndrome) or ARC (AIDS Related Complex) or tested positive for HIV (Human Immunodeficiency Virus)?

6. Are you waiting for a diagnosis or have you been advised to have a surgical operation, diagnostic test or medical or mental evaluation that has not yet been completed?

7. Have you requested or received any Worker’s Compensation or Social Security disability benefits? (Must answer NO)

8. Do you currently take more than 2 prescription medications for pain; or do you consume, on average, more than 3 alcoholic beverages per day?

9. In the past 10 years, have you received any treatment, medical advice or consultation for; been diagnosed with or required follow-up for: diabetes or elevated blood sugar; cancer (excluding basal cell or squamous cell carcinoma of the skin); stroke, transient ischemic attack (TIA or mini-stroke); emphysema; chronic bronchitis or chronic lung disease; major depression or anxiety that required psychiatric treatment; bipolar disease or mood disorder; schizophrenia, Alzheimer’s disease, dementia, rheumatoid arthritis, paralysis; any degenerative muscle or nerve disease or disorder; alcohol or drug abuse; OR any disease or disorder of the following: heart, aorta, coronary arteries, peripheral vascular system, blood, liver pancreas, kidney (other than kidney stones), brain or connective tissue?

10. In the past 2 years, have you been hospitalized or evaluated in an emergency room or immediate care center for a chronic illness requiring ongoing treatment or care by a physician; OR have you participated in any hazardous activities or extreme sports?

11. Have you, within the past 5 years, been convicted of or pled guilty or no contest to a felony, misdemeanor, reckless driving, DUI or DWI; or been incarcerated or served in a probation or parole program or do you have criminal charges pending? (Must answer NO)(Note: Answering the above questions, does not guarantee a policy will be approved.)

Rapid Decision Express – Underwriting

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Submitting Applications•Only Available Thru Rapid App System (no paper)•All writing agents will automatically have access to the Rapid App online app system

– Agents need to register User Id and Password for Agent Login

Contracting and Commissions•New GA/Agent contracting follows current procedure and RD Express will be automatically added at requested RDT comp level.•No additional contracting necessary (product is already in RDT agreement)•Rapid Decision Express will be paid at same compensation levels as RDT

– Please call your upline for more information on comp– All other products on RDT agreement and comp grids will remain the same

•NOTE: For new agents interested in selling RD Express, contracting paperwork must be submitted prior to being able to submit business.

Rapid Decision Express – Quick Facts

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Rapid Decision Senior Life - Product Information

Ages Minimum Maximum Ages Minimum Maximum

50-55 $10,000 $150,000 50-55 $10,000 $150,00056-65 $10,000 $100,000 56-65 $10,000 $100,00066-70 $10,000 $50,000 66-75 $10,000 $50,000

76-85 $10,000 $25,000 T

erm

:

Who

le L

ife:

Accept/Reject Graded Death coverage for Impaired Risk (hard to place cases/declines)• Non- Medical underwriting, approvals within 24 to 48 Hours - MIB, MVR, RxLevel Premiums for the life of the policy• 10-year term: to age 80 or for 20 years, whichever is longer• 20-year term: to age 80 or for 25 years, whichever is longer• 30-year term: to age 80 or for 35 years, whichever is longer

– Renewable in yrs 11, 21 or 31 (as applicable to initial term) with a one-time decrease of 50% of the original face amount.

• Whole Life: to age 121Benefit is graded in years 1, 2 and 3, pays full benefit in year 4+. • Death benefit for non-accident during the first three years equals premiums paid plus 5% interest

accumulated from the date premiums are paid until the date of death.• Full death benefit paid upon death due to accidents during the first three policy years.Optional Accidental Death Benefit Rider: $25K to $150K (not limited to policy face)

Included Accelerated Death Benefit: In event of terminal diagnosis - advances up to 50% of base plan death benefit (payable 4 yrs after issue)

Issue limits:

*NOT GUARANTEEDISSUE PRODUCT!

Available for paper and Rapid App application submission

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Rapid Decision Senior Life – Accept/Reject Underwriting

Client would have to be able to answer "NO" to all of these questions to qualify for Rapid Decision Senior Life...

Have you been diagnosed as having or been treated by a physician for:• AIDS, ARC or HIV• Alzheimer’s Disease or Dementia• Amyotrophic Lateral Sclerosis (ALS)• Mental Retardation or Down's Syndrome

Or do you...• Require the assistance of another person for dressing, bathing, toileting or mobility or use an oxygen tank

Have you, within the past 2 (two) years:• Had a heart attack or stroke• Had or are now awaiting an organ or bone marrow transplant (except as a donor)• Been diagnosed with cancer or received or been prescribed radiation, chemo or dialysis• Been confined to or advised by a licensed medical professional to be admitted to, a nursing home,

hospice, extended care or special treatment facility or are you now hospitalized• Used controlled substances except as prescribed by a physician• Been treated for or been advised by a physician to seek treatment for drug or alcohol use• Been advised by a physician that your life expectancy is less than 24 months• Had more than one DUI (DWI) violation, been convicted of a felony or are you now on probation

Rate Classes (Male/Female) ~ Standard 8

Stand alone Accidental Death Benefit coverage• No Medical Underwriting, Guaranteed Issue

– Only need US Citizenship or Permanent Residency• Coverage amounts $50,000 to $500,000• Issue Ages 20 – 65 • Unisex Rates for all issue ages• Full Benefits paid to age 70 • Auto Safety and Travel Accident Benefits Included • Optional Spouse and Dependant Children riders available• Optional Return of Premium Rider

Accidental Death Benefit – Product Information

$500,000 = $47.85 / month

Available for paper and Rapid App application submission

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$300,000 = $30.26 / month

FIDELITY CONTACTS

• Sales & Marketing– Product Questions & System Training– Marketing Materials– Phone: (866) 710-1013– Email: sales@fidelitylife.com

• Jason Panitch, Channel Sales Manager – Direct Distribution– Product Questions & System Training– Phone: (312) 379-2997– Email: jason.panitch@fidelitylife.com

• Underwriting– Risk Assessment – Phone: (866) 947-8739– Email: und@fidelitylife.com

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