Is Focus 10 issued on a Guaranteed Issue basis?
Almost. It’s called “Simplified Issue” because there is only one application question that determines eligibility:
”Have you been actively at work on a full-time basis?”
“‘Actively at work’ means performing your normal duties for at least 30 hours per week for the past three months with no absences totaling five consecutive days or more due to illness or accident.”
Fixed Design
We are pleased to announce that the Focus 10 Life® Plan is now available to employer groups with as few as five covered lives! The new small employer product is called the “Fixed Design”. It offers fixed benefit limits of $100k (5-9 lives) or $150k (10-19 lives). Other than benefit limits, the small group Fixed product provides the exact the same advantages as the “Flexible Design” for 20 + lives which offers up to a $1.5 million dollar face amount maximum – the more lives the better: It is still an Individual, Simplified Issue 10 year level term product with full portability and conversion rights.
Focus 10 Life is an individual life insurance benefit plan customized for employers for the purpose of providing a better form of life insurance protection for executives and key staff. Focus 10™ provides a better overall life insurance benefit program to key employees. This is a unique, value-added product that offers individual term life coverage for a guaranteed 10-year level premium with both portability and conversion options.
For those employers or partnerships that are currently providing group term life coverage, they should consider that a Focus 10 Life plan can be used as:
- a valuable addition to their life insurance program by “stacking” benefit amounts above existing levels; and/or
- a “carve-out” of key employees from an existing group plan.
Focus 10 Life is:
- Approved in all 50 states
- Simplified issue – individual term policies are issued to each insured.
- Premiums are level and guaranteed for a 10 year period.
- Up to $1,500,000 of benefits are available based on size of group*.
- Coverage is issued to age 70.
- Policy is portable at time of retirement or departure from firm.
- No benefit reduction at older ages.
- Policy is convertible up to age 75 without medical evidence.
- Focus 10 Life is always employer or partnership paid – never voluntary.
Plan Highlights
High Policy Limits to Age 70 – High Policy Limits to Age 70 (certain restrictions apply in NJ) – Maximum simplified issue limits of $1,500,000 available per individual policy.* *By request and carrier approval, the client plan may provide increased coverage to certain classes
Guaranteed Rate for 10 Years on a Level Basis – A competitive and guaranteed premium cost on the carved out employees over a ten year period with no termination of coverage during this time, except for non-payment of premium.* *Rates are smoker distinct.
Simplified Issue – No physical exams required. Simply complete a short application with only one main qualifier: Be actively at work on a full-time basis with no absences totaling 5 or more consecutive days due to accident or illness in the past 3 months.
No Conversion Charges for the 10 Year Individual Term – The client’s conversion charges inherent in traditional group life program are eliminated. At retirement or termination, the employee may continue coverage with a term policy or convert to a permanent policy.
Full Coverage Continuation – Unlike Group Term Life, no benefit reductions at older ages. This is extremely important to the senior employees approaching age 65 who may be facing cutbacks under their current plan.
Not Experience or SIC Code Rated – Claims in the individual, carved out portion will not affect the traditional group rate. Therefore, since the carved out portion typically contains the senior, more heavily insured members of a company, the remaining group, with this reduced exposure, may enjoy a rate reduction.
Single-Source Administration – Dedicated Key Account Manager assigned to each client to provide responsive, one stop service, detailed summary of coverage and cost provided to the employer and both the group and individual plans administered on a consolidated basis under one bill. Approved in all 50 states.
Plan Uses
Fringe Benefit – An Employer paid benefit for all eligible employees in a covered class. Policies are typically owned by the employee or their trust and policyholder names his/her own beneficiary. Premiums are typically deductible to the Employer and taxable to the Employee. Focus 10 Life provides the portability and conversion to permanent coverage features typically not found in traditional Group Term Life.
Key Person – Coverage on specific class of employees by title or salary for which the firm is the beneficiary. Benefits are used by the firm to help offset the cost of replacing the loss of a Key Person. Focus 10 Life can provide high limits of coverage on a small number of employees.
Funding of Buy/Sell Agreements – Partnerships with buy/sell agreements in place typically fund the agreement with life insurance. Focus 10 Life offers the high benefit limits and individual policies of fully underwritten plans with a simple one qualifying question application and turn key administration. Focus 10 Life can be put in place in a matter of days after the applications are received.
Focus 10 Life can be used to achieve a number of goals simultaneously within one Employer or Partnership. For example, Focus 10 Life is currently being used by a law firm client to:
- Cover their staff as a FRINGE BENEFIT;
- Cover a group of non-partners as KEY PERSONS; and,
- Cover all partners to fund their BUY/SELL agreements.