New STEP Underwriting Program Allows Customers With Another Carrier's Term Coverage to Obtain Valuable Permanent Coverage With Simplified Underwriting

Do you have customers who own term insurance with another carrier, but would benefit more from permanent coverage? Lincoln Benefit Life's STEP (Simplified Term Exchange Program) may be the answer. STEP allows customers with term policies issued in the past five years to purchase an LBL UL or VUL product with simplified underwriting.

Here's how it works:

The insured must be age 65 or less, and the policy must have been issued within the past five years by an eligible carrier,¹ at standard rates or better, with full underwriting.² The term policy must still be convertible. Underwriting on the permanent policy is limited to a tele-interview and searches of the MIB and a prescription drug database. The new policy cannot exceed the amount of the original term policy or $1,000,000, whichever is less. Only term base policies are eligible. Up to 50% of the coverage on the new LBL policy may be in the form of a PTR rider on the primary insured.

What to Submit:

• Tele-app form FAA73 (or applicable state version). Complete Part 1, the Agent's Report, and the Financial Information page (if required for the face amount). In addition, please note in the Agent Remarks section at the bottom of Page 2 that you want STEP. Please do not use the LA2000 application, as it is not compatible with the tele-app method and does not include authorization for the prescription database search.
• The cover sheet that comes with the application.
• First premium and bank draft or credit card authorization.
• Other usual point-of-sale forms, including an illustration and replacement notice.
• An Absolute Assignment for Simplified Term Exchange Program (STEP) form (FIC306LBL).
• The original term policy.

What to Expect:

LBL will order a tele-interview and searches of the MIB and prescription drug database. The tele-interview, which takes 10-20 minutes, will be conducted by our vendor, ExamOne. If this process does not uncover a significant change in health or insurability since the original term policy was issued, we will terminate the term policy and issue the new policy in the same or most comparable rate class to that of the original term policy. If there has been a significant insurability change, we will stop the purchase process and return the original policy, but will be happy to consider additional non-replacement coverage with full underwriting upon request.

Important Information on Replacements:

Lincoln Benefit Life does not encourage systematic or unsuitable replacement of existing life insurance. Careful comparison and analysis of all options is necessary to ensure that sales under this program are in the customer's best interest. This program does not provide certain advantages that might apply to a conversion with the original company, including but not limited to term conversion premium credit and contestable and suicide exclusion periods running from the original policy issue date.

¹ STEP (Simplified Term Exchange Program) Eligible Carriers:

1 See list of eligible carriers above.

2 Must not have been written under a table shave, simplified, or guaranteed issue program.

This program is not available in New York.

Variable universal life products are long-term investments designed to provide life insurance protection and flexibility in connection with premium payments and death benefits. A customer should carefully consider the investment objectives, risks, charges and expenses of the investment alternatives before purchasing a policy. These policies have limitations and are sold by prospectus only. The prospectus contains details on the investment alternatives, policy features, the underlying portfolios, fees, charges, expenses and other pertinent information. To obtain a prospectus or a copy of the underlying portfolio prospectuses, please contact Distribution Support at 888-525-7355 or go to www.accessallstate.com. Please read the prospectuses carefully before selling a contract.

Lincoln Benefit Life Company, Home Office: Lincoln, NE, is a wholly owned subsidiary of Allstate Life Insurance Company, Home Office, Northbrook, Illinois

copyright 2008 Allstate Life Insurance Company, Home Office, Northbrook, IL accessallstate.com