What kind of product is RightLife Universal Life?
The RightLife UL is a flexible premium adjustable life with an available death benefit guarantee to age 120. This new UL product was created to offer multiple death benefit guarantee periods and to allow for short pay or dump-in scenarios.

What is U.S. Financial Life's retention and Automatic Reinsurance Capacity on RightLife UL cases?
USFL’s retention is $1.5 million through age 75 on RightLife UL policies and our automatic reinsurance capacity is $10 million through age 75 on RightLife UL policies.

Will USFL underwrite RightLife UL cases differently than RightTerm cases?
No. Universal life and term are underwritten identically.

What are the differences between RightLife UL and the NovaSuperNova UL products?
The RightLife UL has a higher minimum face: $100,000 instead of $25,000 or $10,000. The RightLife UL has banded rates. One set of rates below $250,000 and the other for face amounts of $250,000 and above. RightLife UL has multiple death benefit guarantee periods! RightLife UL provides for short-pay and even single-pay scenarios!

What is the new money/investment year method?
Our favorable initial interest rate of 4.75% will be credited to all funds received while that declared rate is in effect. This allows our crediting to be more responsive to market adjustments.

Does RightLife UL feature a dial-a-guarantee death benefit feature?
No. The policy owner must select one of the five (fewer at some ages) Selected Guarantee Periods, to ages 75, 85, 95, 100, 120. There is a 20-year minimum death benefit guarantee that applies when the Selected Guarantee has terminated. The 20-year Minimum Guarantee is not an available Selected Guarantee Period. After the owner selects a guarantee period, that selection cannot be changed once the policy is issued.

Is a signed illustration needed with every application for RightLife when some states don't require signed illustrations?
Yes, since the Selected Guarantee can not be changed once the policy is inforce, it's very important to issue the policy accurately.

Does RightLife UL allow for short-pay or single-pay scenarios?
Yes! The RightLife UL features single-pay or short-pay capability. The policyholder may elect to pay a level premium in all years or for a shorter time at a discounted amount.

Does RightLife UL have a rolling target?
Yes. For RightLife UL policies full first-year commissions are paid on the premium paid during the first 24 months up to the Annual Commissionable Target Premium. Table Ratings and Riders increase the Annual Commissionable Target Premium.

Does RightLife UL have a Catch-Up Provision?
USFL will send the policyholder a notice when either the Twenty-Year Minimum or Selected Guarantee is in jeopardy of terminating. These notices will be triggered any time the actual net payments have not satisfied the required premiums. The policy owner has 61 days in which to make up for payments that were skipped. If the policy owner does not pay the deficit premium during the 61 day grace period the Twenty-Year Minimum or Selected Guarantee will terminate and cannot be reinstated.

Are both RightLife UL and RightTerm available in the new illustration system?
Yes. The software allows the user to illustrate RightLife UL and RightTerm term products. If your agency wants the capability to illustrate Nova or SuperNova, save the old illustration system. These products are not on the new system.

What are the transition rules in states that have approved RightLife UL as of July 10, 2006?
RightLife UL replaces Nova and SuperNova UL. All applications for UL insurance dated August 10, 2006 or later and subsequently approved and issued with a Policy Effective Date of July 10, 2006 or later will be processed as RightLife. USFL will not process as Nova UL or SuperNova UL any application received in the Home Office dated after August 10, 2006 in those states that have approved RightLife UL as of July 10, 2006.

What are the transition rules for future state approvals?
State approvals will be posted to the USFL Web site at www.usfli.com once monthly. USFL will announce state approvals 15 days prior to the State Availability Date.

All applications for UL insurance dated on or after the State Availability Dates and subsequently approved and issued with a Policy Effective Date on or after the State Availability Dates will be processed as RightLife UL.

After state approval of RightLife UL, Nova UL or SuperNova UL can only be underwritten if:

• The application is dated before the State Availability Date.

AND

• The application is received at USFL within 15 days of the State Availability Date.

What about backdating to save age?
Policies can be backdated to save age only if the resulting Effective Date will be on or after the State Availability Date. To backdate with a policy Effective Date before the State Availability Date will result in a Nova UL or SuperNova UL policy.

Is RightLife UL an age nearest or age last birthday product?
RightLife UL is age nearest, just like RightTerm.

Is RightTerm convertible to RightLife UL?
Yes. RightTerm is convertible to RightLife UL. The premium class for the new policy will reflect the premium class for the existing policy at the time of its underwriting. Conversion is available until one of the following occurs:

• Insured's 70th birthday
• Tenth policy aniversary for the RightTerm 15, 20, 30
• Fifth policy anniversary for the RightTerm 5 or 10

There is a conversion credit available. Conversion credits will equal the total earned premiums paid on the term policy up to 50% of the new RightLife UL policy's scheduled premium (not greater than 50% of the Annual Commissionable Target Premium). Conversion credits are non-commissionable. Converted credits can either be applied against the first year premium or applied as a lump sum.