Encore is a great insurance product to offer your employees. It is an innovative life insurance policy that gives them permanent Life Insurance with an automatic Annuity Accumulation Option of their choice. Encore is underwritten by American-Amicable Life Insurance Company of Texas and marketed through American Benefits Exchange.
Encore is an Individual Whole Life Insurance policy enhanced by a variety of valuable insurance riders. The Policy offers a comprehensive package of benefits for the insured and term life insurance for the insured’s entire family. This package includes:
Total Disability Benefit Rider (Policy Form No. 9785) With the Total Disability Benefit Rider you can receive a monthly benefit should you become disabled. This benefit will help offset lost income and pay for a period of up to two years. (Available for an additional premium)
Reduced Paid Up Option At any time after the 10th policy year, you have the option to take reduced paid-up life insurance. Premium payments towards the life insurance would cease at that point allowing for all payments to be directed towards the tax deferred annuity accumulation option.
Waiver of Premium (Policy Form No. 7180 for AA, PA and PS & PWO Ed. 1-79 for OL) If you become totally and permanently disabled (after six consecutive months of Total Disability), the Waiver of Premium Rider will cover both your insurance premium and your planned annuity rider premium for the life of the policy. (excludes excess premiums) (Available for an additional premium)
Accelerated Benefit Terminal Illness Rider (Policy Form No. 9473)+ You can receive payment of up to 100% of the face amount of your Encore policy if diagnosed as terminally ill where life expectancy is 12 months or less (24 months in some states).
Accelerated Benefits Rider – Confined Care (Policy Form No. 9674)++ With this benefit if you are confined to a nursing home at least 30 days after the policy is issued you can receive a monthly benefit of 2.5% of the face amount up to $3,750 per month. (Not available in all states)
Beneficiary Guaranteed Insurability Rider (Policy Form No. 9679) With this benefit, you can leave a legacy to multiple generations. If your policy was in force for at least five years before your death, your beneficiary will have the following options: 1. The beneficiary can receive all the proceeds in cash income tax free; 2. Or, purchase either a whole life policy or a policy of the same type as this policy then offered by the Company (not to exceed the lesser of the death benefit proceeds received or $150,000) with no medical exam. 3. Or, a combination of both income tax free cash AND purchasing a life insurance policy then offered by the Company.
Family Insurance Agreement (FIA) (Policy Form No. 8374) The Family Insurance Agreement provides additional coverage for the proposed insured spouse and eligible children/dependents. (Available for an additional premium)
Children’s Insurance Agreement (CIA) (Policy Form No. 8375) The Children’s Insurance Agreement provides term insurance on the lives of the children until they are age 25, at which time their coverage is convertible to a permanent plan of insurance at a rate of five times the base. (Available for an additional premium)
Encore is available in the United States only, but not in every state. Please contact us for products that may be available in your state.
The amount(s) will be established at the time the employee applies for Encore. They can make yearly contributions of no more than $4,000.
A minimum interest rate of 2% is guaranteed which is fixed for the contract on date of issue.
All annuity interest earnings are tax deferred. This means that no income taxes are due on these earnings until the funds are withdrawn. Interest is calculated on a daily basis.
They may be subject to tax penalties for any withdrawals they make before age 59 ½.
The Death Benefit will always be equal to the Accumulation Value at the time of death. The beneficiary will be paid an amount equal to the Accumulation Value of the Rider as of the date of death.
Contributions: The amount(s) will be established at the time the employee applies for Encore. The minimum initial premium is $15 a month. The annual maximum contribution cannot exceed $4,000.
Tax-Deferred Growth: The interest credited is tax-deferred. While interest is accumulating, it grows free of current income tax until you withdraw it. By postponing the tax, your money grows faster because you earn interest on dollars that otherwise would have been paid to the IRS.
No Fees: There are no set-up charges, account maintenance fees, minimum balance assessments or annual fees.
Settlement Options: AssetShield offers your employees several payment options to choose from including:
Your employees will have instant access to their funds. They may withdraw up to 10% of their accumulated account balance during any contract year at no charge. Any withdrawals that exceed the 10% maximum may be assessed a surrender charge.
+ Terminal Illness Accelerated Benefit Rider (Policy Form No. 9473). If you are diagnosed by a licensed physician with a life expectancy of 12 or less months (some states 24 months), you may receive up to 100% of the death benefit of your policy. The payment of the accelerated benefit will reduce the death benefit proceeds by the amount of the benefit paid. The cash value (if any), amount available for loans (if any), and the premium (excluding policy fee) for the policy will decrease in proportion to the amount of benefit paid. Availability varies by state. See rider for complete details.
++ Accelerated Benefits Rider – Confined Care (Policy Form No. 9674). If a licensed physician provides the company a written statement of the diagnosis of your medical condition and states that you are a full time permanent resident of a Nursing Home and will continue full time permanent residence in a Nursing Home until death, you may receive a fixed monthly payment equal to the lesser of 2.5% of the policy face amount or $3,750. The payment of the accelerated benefit will reduce the death benefit by the amount of the benefit paid. The cash value (if any), amount available for loans (if any), and the premiums (excluding policy fee) for the policy will decrease in proportion to the amount of the benefit paid. Availability varies by state. See the rider for complete details.
The acceleration-of-life-insurance benefits offered under these riders may or may not 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 whether you use the benefits to pay for necessary long term care expenses, such as nursing home care. If the acceleration-of-life-insurance benefits qualify for favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation. However, acceleration-of-life insurance benefits payments may be taxable by your state. Tax laws relating to acceleration-of-life-insurance benefits are complex. You are advised to consult with a qualified tax advisor about circumstances under which you could receive acceleration-of-life-insurance benefits excludable from income under federal law.
Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), drug assistance, or other public assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your spouse’s or your family’s eligibility for public assistance.