Frequently Asked Questions
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, 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 you pay to purchase or invest in a financial product either (1) up front, (2) over time, (3) as a surrender charge if you quit early or as a combination of the three. In a typical life insurance policy, the sales commission can represent as much as 100% of your first-year premium. When you buy an Ameritas Low-Load policy, you avoid such sales commissions and surrender charges.
Is there a limit to how much I can 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 you borrow or withdraw from or surrender your policy. You'll also experience a 10% tax penalty on any gains distributed prior to age 59½.
Once I own the policy, can I change the amount of coverage?
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, poor investment returns, higher policy costs, or excessive loans and withdrawals could cause the policy to lapse. We encourage you to use the regular reports you'll receive to monitor your policy's value.
What happens when I apply?
When we receive your application, an Ameritas associate will contact you and ask for additional information about your health and family history. The associate will arrange a time for a trained medical professional to come to your 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 your application has been approved, and your policy will be mailed to you.
What happens when the policy is issued?
We will notify you when your application has been approved, and your policy will be mailed to you. When you receive the policy, you have a ten-day "free look" period. During this time, your initial premium is allocated to the Vanguard Money Market Portfolio. If you return the policy within the "free look" period, all monies are returned to you. If you do nothing, after thirteen days from the issue date, your premium is allocated according to your instructions.
How can I keep track of my policy values?
You'll receive regular statements regarding the progress of your policy each time a premium payment is received or when a partial withdrawal, loan, investment portfolio transfer or other change occurs. In addition, you will receive quarterly statements of current policy values, including a breakdown by investment option and annually you will receive a report detailing the past year's activity. You can also check on the current value of your investment options through an automated toll-free phone system and through our web site.
The Ameritas Low-Load Variable Universal Life insurance policy (Form 4055) is issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable products have investment risk, including the possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges, expenses and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses, which are available on this web site. Please read the prospectuses carefully before investing or sending money.
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