Ameritas Advisor Services

If you sell policies with no commissions, how do you make money?
Even a no-commission policy includes expenses and revenues, just as the price of an automobile includes the cost to make the car, plus a profit. If you could buy a new car straight off the assembly line, you'd save the distributing dealer's markup, but the price you'd pay would still include the manufacturer's expenses and revenue. With Ameritas Advisor Services, policies come directly from the insurance company "assembly line," so you save the usual sales distribution markup.

What does "load" mean?
In the context of a financial product, "load" usually refers to the sales commission. It is deducted from money that is paid to purchase or invest in a financial product either (1) up front, (2) over time, (3) as a surrender charge or as a combination of the three. In a typical life insurance policy, the sales commission can represent as much as 100% of the first-year premium. When you recommend a no load policy, you avoid such sales commissions and surrender charges for your client.

Is there a limit to how much can be put in the policy?
Yes, there is a limit to how much premium can be put into the cash value in the first 7 years for the policy to retain all its tax advantages. If premiums exceed 7-year IRS guidelines (which vary by the age and gender of the insured and must be calculated by the insurance company) a Modified Endowment Contract (MEC) is created. While a MEC still offers tax-deferred growth potential, there are unfavorable income tax implications if money is borrowed or withdrawn from or surrendered from the policy. A 10% tax penalty on any gains distributed prior to age 59½ may also apply.

Can the amount of coverage be changed?
Yes, you can change the death benefit as your needs change. Death benefit increases are subject to an administrative charge, an additional cost of insurance charge, and may also require new medical information. The death benefit can be decreased after the third policy year to as low as $75,000.

Will this policy last a lifetime?
This policy is designed to provide lifetime protection. However, insufficient premium, higher policy costs, or excessive loans and withdrawals could cause the policy to lapse. We encourage you to use the regular reports your client receives to monitor the policy's progress. If you prefer benefit guarantees similar to whole life insurance, No-Load Universal Life can assure a guaranteed death benefit through payment of the optimal Guaranteed Death Benefit premium.

What happens when we receive your client's application?
When we receive your client's application, a UNIFI associate will contact the applicant and ask for additional information about health and family history. The associate will arrange a time for a trained medical professional to come to the client's home or office to gather weight, height, heart rate and blood pressure information and collect a sample of blood and urine. We will notify you when the application has been approved.

What happens when the policy is issued?
We will notify you when the application has been approved, and the policy will be mailed according to your instructions. When your client receives the policy,  they have a ten-day "free look" period. If  the policy is returned within the "free look" period, all monies are returned to the owner.

How can I keep track of the policy values?
Your client will receive regular statements and you can request to receive copies to monitor the progress of the policy .

Should I recommend replacement of an older policy with this one?
While the purchase of Ameritas No-Load Universal Life will not incur new sales load, replacing any life insurance policy should be approached with caution. Purchasing new coverage requires new medical underwriting. Surrender charges may still exist on the current policy. These and other issues should be carefully assessed before proceeding with a purchase of new coverage. An Ameritas Advisor Services salaried professional can help evaluate the existing policy and the consequences of replacing it. Call 1-800-555-4655.