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LIFE INSURANCEExternal TermConversion ProgramProducer GuideFor Producer or Broker/Dealer Use Only. Not for Public Distribution.
External Term Conversion OverviewThrough the External Term Conversion program, MetLife1 will allow a conversion from an eligible unaffiliated company’s termpolicy to a MetLife permanent insurance policy without a medical exam or blood test. All conversions must meet the program andsuitability guidelines.WHY CONVERT?We all know that term insurance serves a very useful purpose,especially when a client needs the greatest amount of protectionavailable at the most affordable premium. In most cases, thedecision to purchase a term policy was probably the right oneat the time.By meeting with your clients you may uncover needs that arenot being met by their current term coverage. Needs such as:– Help meet educational expensesHowever, times and needs change:– Help repay a mortgage– Supplement retirement income– Help cover financial emergencies C ash value from a properly structured and fundedpolicy, which can be used to:2 Families grow Income may have increased F lexibility to adjust premium payments in some policies Term insurance may no longer meet the needs ofyour clientto accommodate changes in their lifestyles Guaranteed protection for life3 They may not be aware of the many new productsintroduced over the past few years They may not be aware that the cost of term insurancecan become prohibitive at older ages They may think that term insurance represents the onlyaffordable choice for themWhen you meet with your clients and present them with theopportunity to convert their existing term insurance, you willbe in the position to review their present financial situation and: Ascertain what products may suit their needs P rovide additional life insurance on them or otherfamily members Obtain referrals S olidify your position as a financial services professionalto their family or business1MetLife collectively refers to Metropolitan Life Insurance Company and MetLife Insurance Company USA.2 Tax-free distributions assume that the life insurance policy is properly structured, is not a Modified Endowment Contract (MEC) and distributions are made upto the cost basis and policy loans thereafter. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences. Loansand withdrawals will decrease the cash value and death benefit.3 Guarantees apply to certain policies. Guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.1For Producer or Broker/Dealer Use Only. Not for Public Distribution.
Eligible CarriersWHICH UNAFFILIATED TERM CARRIERS ARE ELIGIBLE?Because MetLife is waiving medical requirements, it is important to only convert policies offered by strong companies with responsibleunderwriting. The list of Eligible Carriers is reviewed annually with the opportunity to add new carriers. Clients who own an in-forceterm policy issued Standard or better in the last 60 months by one of the following companies are generally eligible for the program.AllstateNew York Life Insurance Company4 Lincoln Benefit Life CompanyNorth American Company For Life and Health InsuranceAmerican General Life Insurance CompanyNorthwestern Mutual Life Insurance Company Old Line Life Insurance CompanyOhio National Life Insurance CompanyAvivaPacific Life Insurance CompanyAXA Equitable Life Insurance CompanyPenn Mutual Life Insurance Company4 MONY Life Insurance Company of AmericaBanner Life Insurance CompanyPhoenix Life Insurance CompanyGenworth Life Insurance CompanyPrincipal Life Insurance Company GE Capital Life Insurance Company First Colony Life Insurance CompanyProtective Life Insurance Company The Guardian Life Insurance Company of America Berkshire Life Insurance Company of AmericaHartford Life and Annuity Insurance CompanyChase Insurance Life & Annuity CompanyEmpire General Life Insurance CompanyFederal Kemper Life Assurance CompanyZurich Kemper Life Insurance CompanyProvident Mutual Life Insurance CompanyLiberty LifeState Farm Life Insurance CompanyLincoln National Life Insurance CompanyThrivent Financial First Penn Pacific Life Insurance Company Jefferson Pilot Life Insurance CompanyTransamerica Life Insurance CompanyManulife Insurance CompanyUnion Central Life Insurance Company John Hancock Life Insurance CompanyWest Coast LifeMassachusetts Mutual Life Insurance Company4Western Reserve Life Assurance CompanyMidland National Life Insurance CompanyMinnesota Life Insurance Company This list is subject to change. Group affiliates or subsidiaries of approved companies are not eligible unless they are already on the list of approved companies.4Only policies issued preferred rating classification or better are eligible.2For Producer or Broker/Dealer Use Only. Not for Public Distribution.
Program GuidelinesThe following guidelines have been established and must befollowed in order for a non-affiliated term policy to be eligiblefor conversion:INELIGIBLE POLICIESELIGIBLE POLICIES S ubsidiaries and parent companies of approved companies T his program is not available for applicants residing in New York. – Non-NY resident eligible carrier term policies will be allowed.are not automatically eligible. Approved subsidiaries arereflected in the list of Eligible Carriers. Minimum term face amount for conversion is 100,000. L ifetime maximum aggregate face amount from all approved P olicies issued on a simplified basis, guaranteed issue or asExternal Term Conversion cases per insured cannot exceed 1,000,000.a result of any other special underwriting program are noteligible. Policies with flat extra premiums, SRCs or exclusionriders are not eligible for the program.– Conversions over 1,000,000 are not eligible for thisprogram and must be underwritten. S ome companies may offer policy labels of Standard with a T he term policy must have been issued within the pasttable or class rating; generally these policies are not eligiblefor the program.60 months of the Part 1 date of the new permanent lifeinsurance application. Term policies issued within the pastsix months are not eligible for the program. Policies on disability waiver are not allowed. “ Outside” (traditional) term riders on permanent policies T he term policy must be in force, premium paying and haveissued by approved carriers are not eligible for this program.been issued Standard or better under normal new businesswriting rules. N o collaterally assigned policies are eligible for this program. T he term policy must be within its contractual convertible P olicies that are Universal Life policies designed to performlike a traditional Term offering (sometimes called Term/UL)are not eligible for conversion through this program.period. A portion of the term policy can be converted but nothing is M odified whole life policies with term policy “features” areallowed to be retained with the external carrier.not available for conversion through this program. B usiness owned cases will be allowed as long as the ownerand insured remain the same.NEW PERMANENT POLICY P rimary insured and/or spouse term riders are eligiblefor conversion, provided the classification of the rider isStandard or better. All such riders must also be converted intheir entirety; no partial conversions will be allowed. A ll currently available individual permanent life productsoffered by MetLife are eligible for conversion. B est available classification on the permanent policy is A policy with a classification of Smoker or NonsmokerPreferred Nonsmoker. Elite is not available.is a Standard classification. T he Flex Term Rider is available on MetLife Promise Whole S ome companies engage in a practice called Table Shaving,Life and MetLife Promise Whole Life 120.whereby several substandard table ratings are “shaved” to theStandard class. The list of Eligible Carriers identifies thesecompanies and only term policies issued in the PreferredClass or better from these carriers are eligible. T he Enricher , Enhanced Care Benefit Rider, and AcceleratedDeath Benefit Rider (ADBR) are not available with thisprogram. T he Disability Waiver of Premium rider can ONLY beapplied for if it was fully underwritten on the original termpolicy. If applied for, it is subject to full underwriting. T erm conversion vouchers or credits are not available forthis program.3For Producer or Broker/Dealer Use Only. Not for Public Distribution.
OTHERSUBMISSION REQUIREMENTS A s with all life insurance sales, the transaction must beYou and your client need to complete the following forms inorder to take advantage of this program:suitable for the customer and be fully supported by afinancial needs analysis.1) Using the Enterprise Life Insurance Application: T he insured’s issue or conversion age on the new permanent If Disability Waiver is not requested:policy must be 18 to 65 inclusively.– Sections one through six (only). T he insured and the policy owner must reside in the UnitedStates.– Debit Authorization, if applicable.– Data-enter special project code “EC”. T his program is a solicited program; therefore, all stages of– The Certification/Agreement/Disclosure pages,with all signatures included.the new business process must be completed in the UnitedStates.– Producer Identification and Certification. T he client(s) must cancel their previous term policy andpayment agreement between themselves and the previousterm company.– Written confirmation of term policy cancellation.6 I f disability waiver is requested in accordance withprogram guidelines, or if underwriting is requireddue to face amount on new policy being greater thanterm and/or eligible rider being applied for and/oraggregate face amount for all non-affiliated term policiesexceeds 1,000,000, in addition to the above completedinformation, the application and any required forms(e.g., EAUTH, HIV Consent Form) must be fullycompleted, signed and dated. The Medical Supplement(EMED-48-07) form is required but considered optionalif an examination is required. R egardless of policy assignment, the payment arrangement isa separate contract between the client and the previous termcompany. T he original term policy must be mailed to the Tampa NewBusiness Center — Attention Policy Change, 18210, CraneNest Drive, Tampa, FL 33647. Policy Specification page(or copy) showing the insured, insured age, date of issue,classification etc. is acceptable. P artial conversions will be accepted, but the original termpolicy must still be mailed to the Tampa New Business Centeras no portion can be retained with the original carrier.2) Policies will be issued on a Cash on Delivery (COD) basis toavoid the possibility of double coverage unless home officehas received confirmation of term policy cancellation. A ll applications submitted for this program are to becompleted on a Cash on Delivery basis to avoid doublecoverage under the existing term policy and the TemporaryInsurance Agreement. If home office has received confirmation of the termpolicy cancellation, the new policy may be backdated toavoid lapse in coverage.– When issued, these policies will follow MetLife’s Cashon Delivery guidelines for non-variable policies, whichrequire dating a policy 30 days into the future, but for thisprogram the policy must be issued within the 60-monthmaximum time frame. If home office only has documentation indicating intentto cancel term coverage, the new policy must be issuedCash on Delivery (COD).3) Leave the Client Package booklet with the applicant — DONOT complete the Temporary Insurance Agreement andReceipt section.– If monies are received with application, payment willbe refunded and you will be notified that temporaryinsurance is not in effect.4) Provide a signed sales illustration.How to Submit a Case5) Complete all replacement forms required by the state ofresidence of the policy owner.OVERVIEWThe External Term Conversion program allows conversionof approved non-affiliated term insurance to any currentlyavailable MetLife individual permanent life insurance product(no survivorship). Although External Term Conversion is anEnterprise program, only life products that are supported forsale by a producer’s distribution franchise are eligible for thatproducer to convert to.6 External Term Conversion Form EXTC1 is no longer used with thisprogram. In its place, we require written communication from thecustomer indicating intent to cancel or actual cancellation of theterm policy. The new permanent policy cannot be issued without thisdocumentation. For partial conversions, we must have confirmationfrom the non-affiliated carrier that the original term policy wascancelled.4For Producer or Broker/Dealer Use Only. Not for Public Distribution.
6) Mail the original term policy (lost policy declarations forms or policy summaries will not be accepted).7) Other Requirements: If premium mode is monthly draft: Complete the monthly draft authorization form. Do NOT collect premium fromthe applicant. If new policy is the Equity Advantage VUL — complete the Variable Supplement. I ndicate “External Term Conversion” on the top of the first page and data-enter special project code “EC”.YOUR CLIENT’S NEW PERMANENT POLICYThe new permanent policy will be issued with the comparable rating class and smoking designation as the original term policy. Eliteclassifications are not available for the new policy. If the external term policy was issued with the issuing carrier’s version of elite orsuper preferred, the new permanent policy will be issued with a “preferred” rating. In addition, since no insurability questions have to beanswered on the application, unless additional benefits are applied for, there is no information in the policy on which to contest.Like most insurance policies, MetLife’s policies contain charges, limitations, exclusions, termination provisions and terms for keeping them in force. Contact yourfinancial representative for costs and complete details. All product guarantees are subject to the financial strength and claims-paying ability of the issuing insurancecompany.MetLife Promise Whole Life 120 is issued by MetLife Insurance Company USA on Policy Form 5E-12-12 and in New York only byMetropolitan Life Insurance Company on Policy Form 1-15-13-NY. MetLife Promise Whole Life is issued by MetLife Insurance Company USA on PolicyForm 5E-12-10 and in New York only by Metropolitan Life Insurance Company on Policy Form 1-15-13-NY.Life Insurance Products: Not A Deposit Not FDIC-Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In ValueMetLife Insurance Company USA11225 North Community House RoadCharlotte, NC 28277Metropolitan Life Insurance Company200 Park AvenueNew York, NY 10166metlife.comBDTM24521 L1214401692[1215] 2014 METLIFE, INC. PEANUTS 2014 Peanuts Worldwide
Life and MetLife Promise Whole Life 120. The Enricher , Enhanced Care Benefit Rider, and Accelerated Death Benefit Rider (ADBR) are not available with this program. The Disability Waiver of Premium rider can ONLY be applied for if it was fully underwritten on the original term
