Leverage A Small Cash Value

Policy To Buy More Death

Benefit
Using ColonySM Term UL
- A Universal Life Insurance Product

©2010 Genworth Financial, Inc. All rights reserved.

109198 07/16/10 FOR PRODUCER/AGENT INFORMATION ONLY. NOT TO

BE REPRODUCED OR SHOWN TO THE PUBLIC.
The Situation
Young parents each have an old whole life insurance policy
with ongoing premiums purchased when they were children
The death benefit is not enough to meet the current life
insurance needs of a parent with growing children

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 2

The Strategy
Use the cash value of the old policy to purchase a Colony
Term UL policy via 1035 exchange
With planned premiums that compete with term
insurance, the client should be able to purchase more
coverage with the exchange
The amount of the exchange, age and risk class of the
insured, will drive the amount of insurance and length of
the death-benefit guarantee1

1
The death-benefit guarantee can keep the policy in force even if there are no policy values. This guarantee is conditional and
depends on paying the planned premium as scheduled. In addition, certain UL policy rights like loans and withdrawals, if
exercised, can end the guarantee.

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 3

Example
John, age 35, and Mary, age 34 – parents of two children
Both in excellent health and they don’t use tobacco
products
– Preferred Best No Nicotine Use
Interested in 30 years of coverage to carry them through
childrearing and college years
Old policies available for exchange
– John - $50,000 whole life insurance; $17,562 cash value
– Mary - $35,000 whole life insurance; $13,900 cash value

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 4

Example
1,000,000 981,641 962,970

750,000

500,000

250,000

50,000 35,000
0
Old Policy New Policy Old Policy New Policy

John Mary
18 times original amount 26 times original amount

No additional premium needed for thirty years

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 5
Why Choose Colony Term UL?
Planned premiums compete with term life insurance for
10, 15, 20 or 30 years of death-benefit guarantee
Located on the usual quote engines
A flexible premium structure
Can accept 1035 exchanges
Policyowner will know exactly how much it will cost to
continue coverage past the initial guarantee period (unlike
term insurance)
– How much it will costs depends on how long the client
wants to maintain coverage

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 6

Life insurance underwritten by:

Genworth Life and Annuity Insurance Company

Genworth Life Insurance Company Richmond, VA
Genworth Life Insurance Company of New York New York, NY
Only Genworth Life of New York is licensed to conduct business in New York.

Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 7

Disclaimer And Important Information
The Genworth Financial companies wrote this to help you understand the ideas discussed.
Examples are hypothetical and used only to help you understand the ideas. They may not
reflect your client’s particular circumstances. For full information about products’ features,
benefits and limitations read the policy.
ColonySM Term UL is a flexible premium, adjustable life insurance policy, commonly known as
universal life (UL). ColonySM Term UL products, riders and benefits are subject to state
availability and terms, issue limitations and conditions of these Policy Form Nos.:
ICC09GA1002 or GA1002-0709 et al. (Genworth Life & Annuity): ICC09GL1002 or GL1002-0709
et al. (Genworth Life); ColonySM Term UL NY, GY1002-0709 (available only in NY through
Genworth Life of New York).
All guarantees are based on the claims-paying ability of the issuing insurance company.
The tax information in this material was written to support the promotion and marketing of
the contract. The Genworth Financial companies and their representatives and distributors
do not provide tax or legal advice. We did not write this material for use by any taxpayer to
avoid any Internal Revenue Service penalty. Your clients should ask their independent tax
and legal advisers for advice based on their particular situation.
Prior to engaging in a 1035 exchange, your clients should carefully consider a number of
factors including the features and crediting rate(s) of their current product, applicable
surrender charges, any new surrender charge period on the purchase of a new product, as
well as the various features and crediting rate(s) of the new product. Producers should
carefully consider whether a replacement is in the best interest of their client before making a
recommendation to replace the client's existing product.
Leverage a Small Cash Value Policy FOR PRODUCER/AGENT INFORMATION ONLY 8