An Overview Of Premium Financed Life Insurance

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "An Overview Of Premium Financed Life Insurance"

Transcription

1 An Overview Of Premium Financed Life Insurance

2 Introduction The purpose of this presentation is to assist you in understanding how life insurance can be funded using a bank loan as a means of financing premiums. The purchase of life insurance to meet a long term death protection need generally entails the use of permanent life insurance (universal life or whole life). To the extent that the life insurance premiums are paid through borrowing, you must consider the premium funding alternatives to determine if borrowing is an appropriate funding vehicle based on your objectives. Borrowing life insurance premiums can be a useful instrument for funding premiums under select circumstance. Below are some examples of when premium financing may make sense: Cash Flow Issues and Opportunity Costs Funds are tied up in investments that need time to mature or there are restrictions when the funds may be accessed A significant portion of wealth is currently in stock options or restricted stock that mature in a number of years A significant deferred compensation payment will be available to the client at retirement within a few years Client has a unique opportunity to invest in a desirable offering or is reluctant to expend funds in case such opportunities arise in the future Closely-held Business Issues The client is looking to transition from active management from his/her business in the near future and will be considering a sale of the business at that point Closely-held business has cash invested in capital that will eventually generate significant revenues, but a business continuation plan needs to be funded in case of an unforeseen emergency Income/Gift/Estate Planning Issues Income and capital gains tax issues dictate that the client retain certain assets for an extended period of time

3 Introduction Leveraged gift tax strategies by having only the annual interest payments be considered transfers to an irrevocable trust rather than the full premium amount Incorporate the financing piece into the client s overall estate plan, i.e., remainder interest of a GRAT or CLAT being used to repay the loan amount in a fixed number of years Premium financing as part of the client s charitable giving plan These materials do not constitute opinion or advice on legal, tax, accounting or investment matters. Please understand that Provada, its agents or employees, may not and do not give legal or tax advice. We recommend everyone seek and rely upon the advice of his or her own professional advisors prior to the application of this general information to specific situations. This presentation is only valid when preceded or accompanies by the complete basic illustration for the life insurance product(s).

4 Life Insurance Funding Options A policy owner can utilize various strategies for funding life insurance premiums. The following outlines some of the strategies used to fund annual life insurance premiums. Additionally, split-dollar and lowinterest private loans may be used in conjunction with the premium financing technique. For purposes of this report, we have assumed that the life insurance premiums are funded with financing from a bank. AFTER-TAX CASH FLOW Pay life insurance premiums with after-tax cash flow. SPLIT-DOLLAR Split-Dollar provides a funding strategy to use a third party sponsor s pocket book to pay the annual premiums. The policy owner s cost is based on the value of the death protection rather than premiums which provide the insured/policy owner with the ability to make significantly discounted gifts (generally for estate planning purposes). Note that new proposed split-dollar regulations were published in July 2002 which will change the taxation of split-dollar programs. This strategy may be used with the premium financing strategy through having the bank make loans to the premium payer. Note the Sarbanes-Oxley Act of 2002 may disallow this funding strategy for public companies. On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002, which focuses on fighting corporate corruption. Section 402 of the Act applies to any corporation that publicly issues securities and prohibits those corporations from extending credit to any director or executive officer. Some have raised concern that this prohibition on loans to executives might be interpreted to apply to split-dollar life insurance arrangements. We recommend that any corporation considering a split-dollar life insurance arrangement request that their own legal advisors consider whether the prohibitions of Sarbanes-Oxley apply

5 Life Insurance Funding Options IRC SECTION 7872 BELOW MARKET LOAN This also provides a funding strategy to use assets to make interestfree loans. The insured/policy owner would have imputed income and/or gift based on the excess, if any, of the applicable federal rate over the actual interest charged against the outstanding cumulative loan. Note the Sarbanes-Oxley Act of 2002 disallows this funding strategy for public companies. Once again, this strategy may be employed with premium financing, through having the bank loan made to the lender, who would re-loan the premiums to the policy owner at a minimal interest rate.

6 Overview PREMIUM FINANCING Clients with significant wealth are familiar with the benefits of using credit at the right times and for the right reasons to enhance their financial situation. In a low interest rate environment, these financial savvy individuals will consider financing certain current liabilities rather than being forced into untimely liquidation of personally owned assets. This is the theory behind life insurance premium financing. The wealthy client has a present need for life insurance protection whether it is estate planning, business succession planning, or part of a wealth accumulation/preservation strategy but the client has sound financial/business reasons not to liquidate assets in order to fund the insurance need. In these situations, financing the life insurance premiums may be an attractive solution for the client. In general, premium financing strategies involve the policy owner obtaining financing from a financial institution to pay the annual life insurance premiums. This strategy allows you to benefit from being protected by the life insurance policy, with the leverage of premium financing, while utilizing the tax features of life insurance. This analysis will illustrate, based on hypothetical assumptions, the potential benefits and risks delivered via a properly structured premium financing strategy. THE PLAN A typical premium financing arrangement will involve the following: Life insurance premiums are paid by a working line of credit or term loan from a bank, with premium advances for up to 10 years Collateral for the loan is provided by the life insurance policy values as well as any outside collateral that may be required should the policy values create a shortfall Borrower pays loan interest when due (monthly, quarterly, or annually) Loan terms typically will not exceed 10 to 15 years Loan repayment from refinance, policy withdrawal, policy maturity or cash payment

7 Overview Combines both the tax treatment provided to life insurance contracts with the leverage of financing life insurance premiums Life insurance is used to provide death proceeds and in some instances supplemental income PREMIUM FINANCING BENEFITS Aside from any costs related to the loan, no up-front out of pocket cost for the life insurance premium required to place the coverage Borrowed premiums are not subject to gift or income taxes the measure of the gift is based on interest and not the premium payment With certain life insurance products and financing, limited external collateral is required from the policy owner to gain access to financing Policy owner receives all the tax advantages of life insurance o Death benefits are generally income tax free o Cash value accumulation is tax free or tax deferred o Cash value can be withdrawn up to cumulative premiums income tax free 1 o Cash value can be borrowed income tax free 2 Other benefits of premium financing include: o Maintain current liquidity and existing investment strategies o Avoid income taxes from liquidating assets to pay premiums 1 Withdrawals may be subject to income tax, if they exceed premiums paid. In addition surrender charges may apply. 2 Loans against your policy accrue interest at the current rate and decrease the death benefit by the amount of the outstanding loan and interest.

8 The Premium Finance Solution POTENTIAL LENDER There are many lenders that offer premium financing programs. Premium Funding Group will work with Provada and the client to arrange financing with an institution rated AA or higher. A client may also utilize an existing banking relationship although it is important to make sure that any institution in this niche market is committed for the long-term. TYPICAL FINANCING STRUCTURE The final structure of any premium finance arrangement is dependent upon the client s specific situation and the details of the life insurance strategy. Common terms include: A minimum loan amount of $250,000 per year and $1,000,000 over the life of the loan. Financing is available for up to ten years with an additional fiveyear optional period. The terms of the five-year option period may be different from the original loan. Collateral equal to 100% of the outstanding loan balance. o 95% of the cash value of the life insurance policy is typically counted against the collateral requirement. o Additional collateral of cash, U.S. government obligations, or high grade securities may be used. The client maintains investment control over the collateral. o A letter of credit from a major bank may be used. Letters of credit typically cost the client up to 1% of the letter amount each year. Interest rate One-year LIBOR rate plus 150 to 200 basis points. Interest may be paid in advance or in arrears. Other terms and variables may be discussed with Premium Funding Group LLC and individual lending institutions.

9 The Premium Finance Solution HOW IS THE LOAN REPAID (EXIT STRATEGIES)? Premium financing may be a viable solution for a client s insurance funding, but the program is not without risk. The interest rate on the loan balance and projected rate of return of the collateral assets are just two variables that may deviate significantly from original estimates. An unanticipated spike in rates or a downturn in the market may affect even the best laid plans. In order to minimize the potential risks with premium financing, the client is encouraged to develop an exit strategy to repay the loan at the end of the original term. Loan repayments may be incorporated into the client s overall estate planning strategy or by creating a side fund to ensure completion of the financial strategy. Provada can work with the client and his/her other advisors to help form an exit strategy that conforms to the client s goals and financial plan. HOW PREMIUM FINANCING WORKS Once a decision is made to finance the premium payments on a life insurance policy, a multi-step process commences. 1. Preliminary inquiry: Client confers with Provada and other advisors to determine the insurance need and the correct policy that fits these particular needs. 2. Ownership: With the assistance of tax advisors and Provada, the client determines the best person or entity to own the policy. 3. Application process: The person/entity that will own the policy applies for life insurance coverage. 4. Meet with financing consultants: Client and advisors meet with Premium Funding Group to discuss financing options, contract terms and collateral requirements. A decision is made as to the most appropriate lender and the policy illustrations are provided to the lending institution. Alternatively, the client and advisors can meet directly with their own lending sources. 5. Loan closing: Once the loan is finalized and sufficient collateral advanced, lender advances funds to the insurance company as premium payment on behalf of the person/entity owning the life

10 The Premium Finance Solution insurance contract. The policy owner pledges the insurance contract as further collateral to the lender. 6. Annual interest payment: The owner of the policy pays to the lender an annual interest amount on the outstanding loan balance and receives an annual accounting of the transaction. 7. Loan repayment: In many cases, the principal of the loan is repaid to the lender at the end of the loan term and the assignment on the life insurance policy and additional collateral is released. Under certain circumstances, the owner may consider refinancing the loan for an additional term.

11 The Premium Finance Solution Basic Strategy Diagram During Life Engagement into Loan Agreement Client & Advisors Negotiate Loan Terms Premiums & Loan Interest Financing Institution Collateral as Needed Collateral Source Insured, Parents, Children, Trust(s), Family Partnerships, Family LLC, Corporation Pays Premiums Policy as Collateral Life Insurance Trust (owner of policy) Life Insurance Company Trust Receives Tax Free Death Benefit Proceeds At Death Life Insurance Policy Life Insurance Trust (owner of policy) Loan Repayment Financing Institution Net Proceeds to Heirs Collateral Released After Loan Repayment

12 Historical Interest Rate Information BANK PRIME LOAN RATE AND LIBOR RATE Two common indices used in bank loans are the Bank Prime rate and the LIBOR rate. LIBOR stands for London Interbank Offered Rate and is the rate at which banks borrow funds from other banks in the London interbank market. Interest Rate Index Mean High Low Sept Bank Prime Rate 7.63% 10.50% 4.00% 4.00% 1-Year LIBOR 5.29% 9.38% 1.20% 1.286% M onthly Interest Rates from September 1989 to September % 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Sep-89 Sep-90 Sep-91 Sep-92 Sep-93 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep M onth LIBOR Bank Prime Rate M onthly Interest Rates from September 1989 to September % 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Sep-89 Sep-90 Sep-91 Sep-92 Sep-93 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep M onth LIBOR 12 M onth LIBOR + 200bps

13 Tax Issues TAX DEFINITION OF LIFE INSURANCE A policy will qualify as life insurance under IRC Sec if the policy qualifies as life insurance under applicable state law and meets one of two alternative tests: (a) the sum of premiums paid at any time does not exceed the greater of the guideline single premium or the sum of the guideline level premium at such time, and the death benefit payable under the policy at any time is at least equal to an applicable percentage of the cash surrender value (the guideline premium and cash value corridor test ); or (b) the cash surrender value of the policy must not at any time exceed the net single premium which would be necessary to fund future benefits under the policy (the cash value accumulation test ). Failure to qualify as life insurance will result in taxation of all cash value increases, and only the excess of the death benefit over the net surrender value will be excludable from the income of the beneficiary as a death benefit. MODIFIED ENDOWNMENT CONTRACT As defined in IRC Sec. 7702A, a Modified Endowment Contract ( MEC ) is a life insurance policy in which the cumulative premium payments in any one of the first seven policy years, exceeds the sum of the net level premiums which would have been paid to provide a paid-up policy after the payment of seven level annual premiums (the 7-pay test ). Distributions from a MEC, either a withdrawal or loan (or use of the policy as collateral for a loan), are taxed to the extent there is a gain in the policy. Also, a 10% penalty will be assessed on the taxable amount of any distributions made prior to the policy owner s attaining age 59 ½, unless the policy owner is disabled or receives the cash value under a life annuity settlement option. Note, however, that the 10% penalty tax is always applicable if the policy owner is a non-natural person (e.g., a corporation or trust). If there has been a material change in the terms or benefits of the policy, the 7-pay test will be applied as if this was a new contract at the date of the material change. Generally, once a policy is a MEC, it is always a MEC. However, if premiums in excess of the 7-pay limit are paid, the MEC rules will not apply if such premium payments, plus interest (which is taxable), are returned to the policy owner within 60 days after the end of the policy year in which the premium payment was made.

14 Tax Issues TAX-DEFERRED GROWTH OF CASH VALUES Annual increases in the cash value of a life insurance policy are taxable only upon withdrawal, surrender, or other distribution. T.H. Cohen, 39 TC 1055 (1963), acq CB 4; IRC Sec. 72; IRC Sec. 7702(g). WITHDRAWALS Assuming the life insurance policy is not a MEC as described above, withdrawals are taxed under the cost recovery rule and are taxable only to the extent the withdrawal exceeds the cost basis of the policy. Basis equals the gross premiums paid less prior untaxed withdrawals. IRC Sec. 72(e)(5). POLICY LOANS Assuming the life insurance policy is not a MEC as described above, policy loans from a life insurance policy are not treated as withdrawals or distributions and are not subject to income tax. 1 If a life insurance policy loan is still outstanding when a policy is surrendered or lapses, the loan is automatically repaid from the cash value of the policy. This generally results in taxable income to the extent the net surrender value plus the amount of the repaid loan exceeds the cost basis of the policy. If a life insurance policy loan is still outstanding at the time of death, the loan is automatically repaid from the policy s death benefit. The use of the death benefit to repay a policy loan does not cause the recognition of taxable income. Loan interest on life insurance policy loans or the financing for life insurance premiums is generally not deductible. DEATH BENEFITS Proceeds from a life insurance policy because of the death of the insured are generally excluded from income taxes. IRC Sec. 101(a)(1) 1 For a life insurance policy that is not a Modified Endowment Contract as defined in IRC Sec. 7702A: Withdrawals in the first 15 policy years may be taxable under IRC Sec. 7702(f)(7)(B); after 15 years, withdrawals up to policy tax basis are not taxable; and policy loans are not taxable provided that the policy remains in force until the insured dies.

15 Tax Issues GIFT TAX ISSUES Where the donor of an Irrevocable Life Insurance Trust (ILIT)-owned policy guarantees the loan, there is concern that the value of the guarantee constitutes a gift by the donor. There is no direct authority on this issue, although the IRS in a Private Letter Ruling, PLR , held that the value of the guarantee, (which might be measured by the difference in the interest charged with, versus without, the guarantee) is a gift. This ruling was later withdrawn by the IRS, on other grounds. Also, a U.S. Supreme Court case, Dickman v. U.S., holding that interest free loans may be gifts, may be read as supporting the conclusion that a guarantee, without consideration, constitutes a gift. ESTATE TAX ISSUES In the usual case, the donor will be the insured as well as the guarantor of the loan. As such, he/she might at some time succeed to ownership of the contract, for example by having a claim against the ILIT in the event he/she has been obligated to pay the loan as guarantor. There is no direct authority on this issue, although a private letter ruling (PLR ) has expressed the position on that such interest does not constitute an incident of ownership, which would cause inclusion of the policy proceeds in the insured s estate. We recommend that the client consult with his/her tax adviser(s) on the gift income, and estate tax issues related to this transaction. NON-DEDUCTIBILTIY OF LOAN INTEREST In general, interest on loans taken to pay life insurance premiums is nondeductible for income-tax purposes under IRC Section 264.

16 The Economics of Premium Finance Premium financing, as conventionally designed, may entail overfunding of the policy, i.e. maximizing the premium per dollar of death benefit, in order to repay the loan out of cash values, while leaving sufficient cash value to continue the policy to maturity. Whether this strategy is utilized, or a more traditional ( pay all years ) premium plan is implemented, the following should be noted: INTEREST RATE ARBITRAGE To the extent that the policy premiums and resulting cash values exceed the corresponding values for a conventionally funded policy, the policyholder will be engaged in an arbitrage play (i.e. the additional cash value fund is derived from loans bearing an interest cost). To the extent that the interest cost of the loan is less that the net interest crediting rate of the contract, favorable arbitrage takes place. However, if the cost of borrowing exceeds the interest credited on the cash value by the borrowed funds, the policyholder s cost is increased. LIBOR RATE BORROWING AND PORTFOLIO CREDITING There may not necessary be, in any given year, a close correspondence between the borrowing and policy crediting rates. LIBOR rates represent a short-term borrowing cost, which historically is generally lower, but more volatile, than long-term rates. The crediting rate in the policy is based upon the economic performance of an insurance company s general account, comprised primarily of fixedincome securities such as corporate or government bonds and mortgages. A characteristic of the general account is that, from the standpoint of the policyholder, the principal value does not fluctuate and the interest-crediting rate is based upon the fixed value of the investments on the company books. In a declining interest rate environment, the nominal rate credited to the account will decrease as older higher-interest investments mature or are otherwise liquidated and replaced with new lower-interest investments. As a result, even if market rates have stabilized at a low rate, the general account rate may continue to decline, so long as higher-rate investments continue to mature. Correspondingly, if current market rates increase, the general account rate may for a time be lower, as lower-interest rate investments mature.

17 The Economics of Premium Finance TRANSACTION COSTS Premium financing entails additional costs derived from the bank loan, which include loan fees and possible costs associated with the provision of additional collateral beyond the policy cash values. Also, higher premiums than would otherwise be paid into the policy may attract additional percentage-of-premium charges including federal and state tax and sales charges. These increase the cost of the premium financing transaction relative to non-financed alternatives.

Key Person Coverage. Prepared for: Date: Presented by:

Key Person Coverage. Prepared for: Date: Presented by: Key Person Coverage Prepared for: Date: Presented by: PURPOSE This presentation is for the purpose of helping you understand how life and disability income insurance can be used to overcome the shock to

More information

WHAT IS PREMIUM HOW DOES PREMIUM FINANCING? FINANCING WORK?

WHAT IS PREMIUM HOW DOES PREMIUM FINANCING? FINANCING WORK? Life Insurance Premium Financing 1 of 5 WHAT IS PREMIUM FINANCING? Premium financing allows individuals who have a life insurance need to defer using their liquid assets to fund a life insurance policy.

More information

Advanced Markets Combining Estate Planning Techniques A Powerful Strategy

Advanced Markets Combining Estate Planning Techniques A Powerful Strategy Life insurance can help meet many wealth transfer goals. The death benefit could cover estate taxes, for instance, avoiding liquidation of much of the estate to meet the estate tax bill. Even though a

More information

64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs

64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs 64168 MK3373(0209) TC45365(0209) Premium Financing Alternative Funding to Help Meet Your Life Insurance Needs What is Premium Financing? Simply put, premium financing is a strategy for paying for life

More information

A Technical Guide for Individuals. The Whole Story. Understanding the features and benefits of whole life insurance. Insurance Strategies

A Technical Guide for Individuals. The Whole Story. Understanding the features and benefits of whole life insurance. Insurance Strategies A Technical Guide for Individuals The Whole Story Understanding the features and benefits of whole life insurance Insurance Strategies Contents 1 Insurance for Your Lifetime 3 How Does Whole Life Insurance

More information

Understanding the Income Taxation of Life Insurance

Understanding the Income Taxation of Life Insurance A Reference Guide for Individuals and Businesses Understanding the Income Taxation of Life Insurance Answers to Frequently Asked Questions Tax Insights Contents 1 General Questions 4 Non-MEC Policy Questions

More information

Life Insurance: Your blueprint for Wealth Transfer Planning. Private Financing Producer Guide. For agent use only. Not for public distribution.

Life Insurance: Your blueprint for Wealth Transfer Planning. Private Financing Producer Guide. For agent use only. Not for public distribution. Life Insurance: Your blueprint for Wealth Transfer Planning Private Financing Producer Guide Private Financing Most people don t object to owning life insurance, they just object to paying the premiums.

More information

Leveraging wealth transfer using private financing

Leveraging wealth transfer using private financing Private Financing Strategy Leveraging wealth transfer using private financing Not a bank or credit union deposit or obligation Not insured by any federal government agency Not FDIC or NCUA/NCUSIF insured

More information

CHAPTER 8 TAX CONSIDERATIONS

CHAPTER 8 TAX CONSIDERATIONS CHAPTER 8 TAX CONSIDERATIONS Life insurance traditionally has enjoyed favorable tax treatment. The major advantages are (1) the death benefits of a life policy payable to a beneficiary are not subject

More information

Implications of Withdrawals and Loans from a Life Insurance Policy

Implications of Withdrawals and Loans from a Life Insurance Policy Implications of Withdrawals and Loans from a Life Insurance Policy Life insurance is frequently structured to provide income that can be used for various needs, such as supplemental retirement income,

More information

Comprehensive Split Dollar

Comprehensive Split Dollar Advanced Markets Client Guide Comprehensive Split Dollar Crafting a plan to meet your needs. John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company New York (John

More information

Executive Benefits for Nonprofit & Tax-Exempt Organizations

Executive Benefits for Nonprofit & Tax-Exempt Organizations Executive Benefits for Nonprofit & Tax-Exempt Organizations Recruit, Retain, and Reward Your Top Talent with Nonqualified Retirement or Estate Planning Benefits As a nonprofit or tax-exempt organization,

More information

Premium Financing: Common Financing Traps and Dilemmas

Premium Financing: Common Financing Traps and Dilemmas Premium Financing: Common Financing Traps and Dilemmas Premium financing is often used as a way for a client to leverage his or her current liquid assets. Instead of writing the check for the premium due,

More information

Permanent Benefit Group Life Insurance Under Code Section 79

Permanent Benefit Group Life Insurance Under Code Section 79 Permanent Benefit Group Life Insurance Under Code Section 79 Expanding the Benefits of Group Life Insurance Advantages of Permanent Benefit Group Life Insurance. Giving employees the option to use cash

More information

Asset Creation Planning

Asset Creation Planning Asset Creation Planning Innovative Solutions For Seniors Now Seniors have the opportunity to improve their financial situation through the creation of a Life Insurance Asset, often without any out of pocket

More information

Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT

Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT EXECUTIVE SUMMARY Life

More information

White Paper Tax Planning with Life Insurance

White Paper Tax Planning with Life Insurance White Paper www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What

More information

LIFE INSURANCE PLANNING FOR CLOSELY- HELD BUSINESS

LIFE INSURANCE PLANNING FOR CLOSELY- HELD BUSINESS LIFE INSURANCE PLANNING FOR CLOSELY- HELD BUSINESS BY JOSHUA E. HUSBANDS PORTLAND OFFICE 2300 US BANCORP TOWER 111 SW FIFTH AVENUE PORTLAND, OREGON 97204 503-243-2300 503-241-8014 joshua.husbands@hklaw.com

More information

Split-Dollar Loans Equity Collateral Assignment

Split-Dollar Loans Equity Collateral Assignment Split-Dollar Loans Equity Collateral Assignment Introduction A split-dollar arrangement in its various forms is typically used to help clients minimize income taxes and transfer taxes associated with the

More information

Accessing the Cash Values in Your RBC Insurance Universal Life Plan

Accessing the Cash Values in Your RBC Insurance Universal Life Plan Accessing the Cash Values in Your RBC Insurance Universal Life Plan Learn the advantages and disadvantages of the three ways you can access your money Contents: Three ways to access your Cash Values...............................

More information

THE TOP TEN INSURANCE PLANNING MISTAKES IN AN ESTATE PLANNING CONTEXT

THE TOP TEN INSURANCE PLANNING MISTAKES IN AN ESTATE PLANNING CONTEXT THE TOP TEN INSURANCE PLANNING MISTAKES IN AN ESTATE PLANNING CONTEXT LAWRENCE BRODY BRYAN CAVE LLP Copyright 2011. Lawrence Brody. All Rights Reserved. 3585078.1 THE TOP TEN INSURANCE PLANNING MISTAKES

More information

Sales Strategy MONTHLY PUBLICATION DESCRIBING TIMELY AND USEFUL SALES IDEAS AND CONCEPTS

Sales Strategy MONTHLY PUBLICATION DESCRIBING TIMELY AND USEFUL SALES IDEAS AND CONCEPTS A D V A N C E D M A R K E T S Sales Strategy MONTHLY PUBLICATION DESCRIBING TIMELY AND USEFUL SALES IDEAS AND CONCEPTS EXIT STRATEGIES When putting a financing plan together, it is important to make sure

More information

Tax Planning with Life Insurance

Tax Planning with Life Insurance Antell & Company Financial Strategies Jim Antell, CLU, ChFC, REBC 150 Bank Street Burlington, VT 05401 802-318-9149 802-318-9148 jim.antell@lpl.com www.antellcompany.com Tax Planning with Life Insurance

More information

Chapter 10. Life Insurance

Chapter 10. Life Insurance Life Insurance Role of Life Insurance Insurance Program A life insurance program should be an integral part of the overall estate plan. The estate planner should review all of the forest owner s policies,

More information

Traditional Life Insurance Premium Financing

Traditional Life Insurance Premium Financing Traditional Life Insurance Premium Financing Cascade Wealth Preservation is the advanced planning destination. For years, high net worth individuals have faced the challenge of weighing the need to purchase

More information

Wealth Transfer and Charitable Planning Strategies Handbook

Wealth Transfer and Charitable Planning Strategies Handbook Wealth Transfer and Charitable Planning Strategies Handbook This handbook contains 12 core wealth transfer and charitable planning strategies. It also demonstrates how life insurance may enhance the results

More information

Guaranteed to Fit Your Life

Guaranteed to Fit Your Life An Overview Guide for Individuals Guaranteed to Fit Your Life The value of whole life insurance throughout your lifetime Insurance Strategies Contents 1 Whole Life Insurance Basics 2 Insurance That Fits

More information

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions

Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Life s better when we re connected Table of contents Find your questions review

More information

Description of Employer Cash Flow and Assets

Description of Employer Cash Flow and Assets Description of Employer Cash Flow and Assets SERP Select Account Liability Column 1 Employer Contribution The annual contribution promised by the employer to the key employee. The duration and amount of

More information

Flexible Premium Adjustable Life Insurance Policy Illustration

Flexible Premium Adjustable Life Insurance Policy Illustration Flexible Premium Adjustable Life Insurance Policy Illustration Prepared for: d Client Prepared by: Sample Sample MetLife 11225 N Community House Rd Charlotte, North Carolina, 28202 Tel: 5555555555 MetLife

More information

TRANSAMERICA LIFE INSURANCE COMPANY TransACE. Life Insurance Supplemental Illustration. Premium Financing:

TRANSAMERICA LIFE INSURANCE COMPANY TransACE. Life Insurance Supplemental Illustration. Premium Financing: Premium Financing: Leveraging Your Net Worth Financing Life Insurance Premiums with a Third-Party Lender Prepared For: Valued Client Prepared By: Transamerica 1150 S Olive Street Los Angeles, CA 90015

More information

Premium Financing for Life Insurance

Premium Financing for Life Insurance Premium Financing for Life Insurance Producer Guide These materials are not intended to be used to avoid tax penalties and were prepared to support the promotion or marketing of the matter addressed in

More information

Premium Financing of Life Insurance

Premium Financing of Life Insurance Element Insurance Partners 13520 California Street Suite 290 Omaha, NE 68154 402-614-2661 dhenry@elementinsurancepartners.com www.elementinsurancepartners.com Premium Financing of Life Insurance Page 1

More information

Effective Planning with Life Insurance

Effective Planning with Life Insurance Effective Planning with Life Insurance The Tax Considerations... Ken Knox, CLU, ChFC Regional Director The Penn Mutual Life Insurance Company 1304529TM_Sept17 Retirement Planning Case Scenario #1... Client

More information

Life Insurance Review Using Legacy Advantage SUL Insurance Policy

Life Insurance Review Using Legacy Advantage SUL Insurance Policy Using Legacy Advantage SUL Insurance Policy Supplemental Illustration Prepared by: MetLife Agent 200 Park Ave. New York, NY 10166 Insurance Products: Not A Deposit Not FDIC-Insured Not Insured By Any Federal

More information

SUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE

SUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE SUMMARY REVIEW FOR THE COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN TABLE OF CONTENTS INTRODUCTION... i HIGHLIGHTS... 2 PARTICIPATION... 2 Eligibility to

More information

A Story of Guarantees and Financial Versatility

A Story of Guarantees and Financial Versatility A Story of Guarantees and Financial Versatility Whole Life Insurance A Consumer Brochure for Whole Life Understanding Introduction Whole life is a versatile financial product that provides unique benefits

More information

Wealth Transfer Planning in a Low Interest Rate Environment

Wealth Transfer Planning in a Low Interest Rate Environment Wealth Transfer Planning in a Low Interest Rate Environment MLINY0508088997 1 of 44 Did You Know 1/3 of affluent households over the age of 50 do not have an estate plan in place 31% of households with

More information

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED (FORC Journal: Vol. 18 Edition 1 - Spring 2007) 1 An annuity is a contract under which the owner of the contract pays money or transfers assets to the obligor

More information

Trust-Owned Life Insurance: Policy Review and Funding Techniques

Trust-Owned Life Insurance: Policy Review and Funding Techniques Print Trust-Owned Life Insurance: Policy Review and Funding Techniques By Mark W. McGorry and Stephen D. Lassar FEBRUARY 2007 - High-net-worth individuals who need large amounts of life insurance should

More information

Unlocking the value of whole life

Unlocking the value of whole life An Educational Guide for Individuals Unlocking the value of whole life Whole life insurance as a financial asset Insurance Strategies Contents 3 Whole life insurance: A versatile financial asset 4 Providing

More information

Income-Tax Free Benefits for Your Heirs and Lifetime Benefits for You. Lifetime Benefits for You

Income-Tax Free Benefits for Your Heirs and Lifetime Benefits for You. Lifetime Benefits for You Indexed Universal Life Insurance 1 Income-Tax Free s for Your Heirs and Lifetime s for You Prepared on August 13, 2013 for by Trusted Advisor Income - 1 Tax Free s for Your Heirs Lifetime s for You Product

More information

Spousal Lifetime Access Trust Using Legacy Advantage SUL Insurance Policy

Spousal Lifetime Access Trust Using Legacy Advantage SUL Insurance Policy Spousal Lifetime Access Trust Using Insurance Policy Supplemental Illustration Valued Client & Valued Client Prepared by: MetLife Agent 2 Park Ave. New York, NY 1166 Insurance Products: Not A Deposit Not

More information

Understanding Life Insurance

Understanding Life Insurance Understanding Life Insurance A Lesson in Traditional and Indexed Life Insurance 2012 VSA, LP Valid only if used prior to January 1, 2013. The information, general principles and conclusions presented in

More information

LIFE INSURANCE PREMIUM FINANCING PANEL DISCUSSION

LIFE INSURANCE PREMIUM FINANCING PANEL DISCUSSION LIFE INSURANCE PREMIUM FINANCING PANEL DISCUSSION Dennis H. Roberts, CLU American General Matt Davis Oakmont Group Scott Schepps, J.D., CPA Fizer Beck HOUSTON BUSINESS AND ESTATE PLANNING FORUM April 23,

More information

Building an Effective Retirement Portfolio with Whole Life Insurance Guarding Your Retirement Style

Building an Effective Retirement Portfolio with Whole Life Insurance Guarding Your Retirement Style Building an Effective Retirement Portfolio with Whole Life Insurance Guarding Your Retirement Style A CONSUMER GUIDE The Boomer Generation an Introduction to a Different Decade When do you plan to retire?

More information

THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS

THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS THE KUGLER SYSTEM -- VOLUME 1 A SUMMARY OF LIFE INSURANCE PRODUCTS TABLE OF CONTENTS Introduction Assumptions Used in This Text Chapter I: Basic Forms of Term Insurance Annual Renewable Term Insurance

More information

Enjoy the freedom of tax-free retirement income

Enjoy the freedom of tax-free retirement income Tax-efficient retirement income Using life insurance Enjoy the freedom of tax-free retirement income 111833 A (10/15) Ameriprise Financial Confident Retirement approach The Ameriprise Financial Confident

More information

White Paper: Using Cash Value Life Insurance for Retirement Savings

White Paper: Using Cash Value Life Insurance for Retirement Savings White Paper: Using Cash Value Life Insurance for Retirement Savings www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member

More information

Life Insurance in Retirement Planning

Life Insurance in Retirement Planning Life Insurance in Retirement Planning HOW PERMANENT LIFE INSURANCE CAN HELP MEET YOUR DEATH BENEFIT NEEDS AND ENHANCE YOUR RETIREMENT. 0251133-00002-00 Did You Know? Many high-income and high-net worth

More information

Leveraged Life Insurance Personal Ownership

Leveraged Life Insurance Personal Ownership Leveraged Life Insurance Personal Ownership Introduction Leveraged life insurance is a financial planning strategy that uses the cash value of an exempt life insurance policy as collateral security for

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

The Flexibility of Cash Value Life Insurance

The Flexibility of Cash Value Life Insurance Advanced Markets The Flexibility of Cash Value Life Insurance Beyond Protection With today s focus on value and flexibility, cash value life insurance comes into its own. Beyond its main purpose of death

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

More information

The Income Taxation of Employment Split Dollar Loan Arrangements Split Dollar Loan Arrangements

The Income Taxation of Employment Split Dollar Loan Arrangements Split Dollar Loan Arrangements The Income Taxation of Employment Split Dollar Loan Arrangements Split Dollar Loan Arrangements These materials are not intended to be used to avoid tax penalties and were prepared to support the promotion

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life Insurance: A Lesson in Life Insurance If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Insurance Questions

More information

Life Insurance Producer s Guide. Executive Bonus. Using Life Insurance. For Life Insurance Producer Use Only. Not for Use with the Public.

Life Insurance Producer s Guide. Executive Bonus. Using Life Insurance. For Life Insurance Producer Use Only. Not for Use with the Public. Life Insurance Producer s Guide Executive Bonus Using Life Insurance AD-OC-838A For Life Insurance Producer Use Only. Not for Use with the Public. Insurance products are issued by Pacific Life Insurance

More information

PruLife Founders Plus UL

PruLife Founders Plus UL PruLife Founders Plus UL PREPARE FOR THE POSSIBILITIES IN LIFE The Prudential Insurance Company of America 0255027 0255027-00001-00 Ed. 12/2013 Exp. 06/12/2015 A FINANCIAL LEADER FOR OVER 135 YEARS Prudential

More information

Business Owner s Bonus Plan. Producer Guide. For agent/registered representative use only. Not for public distribution.

Business Owner s Bonus Plan. Producer Guide. For agent/registered representative use only. Not for public distribution. Business Owner s Bonus Plan Producer Guide For agent/registered representative use only. Not for public distribution. Business Owner s Bonus Plan Producer Guide The Business Owner s Bonus Plan is a personally

More information

Wealth Creation Planning

Wealth Creation Planning Wealth Creation Planning A better way to own Life Insurance! Life insurance is the most effective way to protect against the financial risk and strain of a premature death. However, large or long term

More information

Life Insurance Income Taxation in brief

Life Insurance Income Taxation in brief Life Insurance Income Taxation in brief Income Tax Treatment of Life Insurance Tax deferred growth Tax favored withdrawals Tax free death benefit Tax Deferred Growth Gain due to cash value growth in life

More information

LIFE INSURANCE THE DIVIDEND DIFFERENCE. Adding Value to Your Whole Life Insurance Policy INVEST INSURE RETIRE

LIFE INSURANCE THE DIVIDEND DIFFERENCE. Adding Value to Your Whole Life Insurance Policy INVEST INSURE RETIRE LIFE INSURANCE THE DIVIDEND DIFFERENCE Adding Value to Your Whole Life Insurance Policy INVEST INSURE RETIRE NOT A BANK OR A CREDIT UNION DEPOSIT OR OBLIGATION NOT FDIC OR NCUA-INSURED NOT INSURED BY ANY

More information

TAX, RETIREMENT & ESTATE PLANNING SERVICES. A Guide to Leveraged Life Insurance WHAT YOU NEED TO KNOW BEFORE YOU LEVERAGE YOUR LIFE INSURANCE POLICY

TAX, RETIREMENT & ESTATE PLANNING SERVICES. A Guide to Leveraged Life Insurance WHAT YOU NEED TO KNOW BEFORE YOU LEVERAGE YOUR LIFE INSURANCE POLICY TAX, RETIREMENT & ESTATE PLANNING SERVICES A Guide to Leveraged Life Insurance WHAT YOU NEED TO KNOW BEFORE YOU LEVERAGE YOUR LIFE INSURANCE POLICY This guide provides information on leveraged life insurance.

More information

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning SALES STRATEGY Guiding you through life. ESTATE PLANNING Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning The Concerns Many clients who are concerned about maximizing

More information

A Business Split-Dollar Life Insurance Plan

A Business Split-Dollar Life Insurance Plan A Business Split-Dollar Life Insurance Plan Since salary alone is often not enough, what steps can your business take to retain your key employees? Table of Contents Page What Is a Business Split-Dollar

More information

Understanding Life Insurance: A Lesson in Life Insurance

Understanding Life Insurance: A Lesson in Life Insurance Understanding Life : A Lesson in Life If something happens to you, how will your family replace your earning power? Table of Contents Page Your Earning Power 2 Life Questions 3 Types of Term 4 Term Variations

More information

Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning

Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning Preparing for Your Retirement: The Role of Life Insurance in Retirement Planning Did you know that cash value life insurance is the only financial product with the flexibility to provide benefits if you

More information

Split Dollar Insurance And Premium Financing Planning (Part 2)

Split Dollar Insurance And Premium Financing Planning (Part 2) Split Dollar Insurance And Premium Financing Planning (Part 2) Donald O. Jansen C. Loans To Finance Premiums 1. Concept a. Why Use Loans To Finance Premiums? i. Reduces Gifts To Trust. If the premium exceeds

More information

Insurance Corporate Insured Retirement Plan

Insurance Corporate Insured Retirement Plan Advisor Guide The BMO Insurance Corporate Insured Retirement Plan Because successful businesses need security and income Table of Contents Introduction to The BMO Insurance Corporate Insured Retirement

More information

Advanced Markets Estate Planning for Non-Citizens in the United States

Advanced Markets Estate Planning for Non-Citizens in the United States Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUSTS: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United States (U.S.),

More information

Accounts Receivable Financing

Accounts Receivable Financing Life Accounts Receivable Financing Accounts Receivable Financing A Planning Strategy for Business Owners Producer Guide These materials are not intended to be used to avoid tax penalties, and were prepared

More information

A variable annuity is a type of annuity in which the contract owner directs the overall investment strategy for the funds placed in the contract.

A variable annuity is a type of annuity in which the contract owner directs the overall investment strategy for the funds placed in the contract. The term annuity derives from a Latin term meaning annual and generally refers to any circumstance where principal and interest are liquidated through a series of regular payments made over a period of

More information

A variable annuity is a type of annuity in which the contract owner directs the overall investment strategy for the funds placed in the contract.

A variable annuity is a type of annuity in which the contract owner directs the overall investment strategy for the funds placed in the contract. The term annuity derives from a Latin term meaning annual and generally refers to any circumstance where principal and interest are liquidated through a series of regular payments made over a period of

More information

Life Insurance Companies and Products

Life Insurance Companies and Products Part B. Life Insurance Companies and Products The current Federal income tax treatment of life insurance companies and their products al.lows investors in such products to obtain a substantially higher

More information

A guide to buying insurance from Wells Fargo Advisors

A guide to buying insurance from Wells Fargo Advisors A guide to buying insurance from Wells Fargo Advisors What you should know before you buy Is life insurance right for you? Life insurance policies are designed for investors who: Seek liquidity to cover

More information

Personal retirement account A retirement savings strategy. Show clients a tax-preferred solution to enhance retirement income

Personal retirement account A retirement savings strategy. Show clients a tax-preferred solution to enhance retirement income Personal retirement account A retirement savings strategy using PARTICIPATING life insurance Show clients a tax-preferred solution to enhance retirement income 2 Personal retirement account Here s the

More information

Sales Strategy Estate Planning for Non-Citizens in the United States

Sales Strategy Estate Planning for Non-Citizens in the United States Sales Strategy Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUST: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United

More information

The dividend difference

The dividend difference An Educational Guide for Individuals The dividend difference Adding value to your whole life insurance policy Insurance Strategies Table of Contents 2 The dividend difference 4 What are policy dividends?

More information

KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION

KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION PERTINENT INFORMATION Mr. Kugler has accumulated $1,000,000 in a traditional IRA. Mrs. Kugler is the designated beneficiary (DB) and their daughter is

More information

Y O U R E N R O L L M E N T K I T GROUP INSURANCE. Group Universal Life Dependent Term Life. Issued by The Prudential Insurance Company of America

Y O U R E N R O L L M E N T K I T GROUP INSURANCE. Group Universal Life Dependent Term Life. Issued by The Prudential Insurance Company of America Y O U R E N R O L L M E N T K I T GROUP INSURANCE Group Universal Life Dependent Term Life Issued by The Prudential Insurance Company of America California Resources Corporation (CRC) All Regular Full-Time

More information

Executive Bonus Arrangements using Life Insurance. Producer Guide. For agent use only. Not for public distribution.

Executive Bonus Arrangements using Life Insurance. Producer Guide. For agent use only. Not for public distribution. Executive Bonus Arrangements using Life Insurance Producer Guide For agent use only. Not for public distribution. Executive Bonus Arrangements using Life Insurance To remain competitive and profitable,

More information

A guide to buying insurance

A guide to buying insurance A guide to buying insurance What you should know before you buy Is life insurance right for you? Life insurance policies are designed for people who: Want to replace income that is lost due to death Seek

More information

Blueprints for Business. Executive Bonus Arrangements Using Life Insurance Producer Guide. Your future. Made easier. SM LIFE

Blueprints for Business. Executive Bonus Arrangements Using Life Insurance Producer Guide. Your future. Made easier. SM LIFE Blueprints for Business Executive Bonus Arrangements Using Life Insurance Producer Guide These materials are not intended to be used to avoid tax penalties and were prepared to support the promotion or

More information

Private Financing CLIENT GUIDE. Advanced Markets

Private Financing CLIENT GUIDE. Advanced Markets CLIENT GUIDE Advanced Markets Private Financing John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York (John Hancock) Guiding you through life. Private

More information

Flexible Premium Adjustable Life Insurance Policy Illustration

Flexible Premium Adjustable Life Insurance Policy Illustration Flexible Premium Adjustable Life Insurance Policy Illustration Prepared for: d Client Prepared by: Illustration Desk 2801 Townsgate Rd. Suite 350 Westlake Village, California, 91361 Tel: 800-350-2019 License

More information

Defined Contribution and Tax-deferred Annuity Retirement Plan. Summary Plan Description

Defined Contribution and Tax-deferred Annuity Retirement Plan. Summary Plan Description Defined Contribution and Tax-deferred Annuity Retirement Plan Summary Plan Description Updated September 2015 This document provides each Participant with a description of the Institution's Defined Contribution

More information

MassMutual Whole Life Insurance

MassMutual Whole Life Insurance A Technical Overview for Clients and their Advisors MassMutual Whole Life Insurance The product design and pricing process Contents 1 Foreword 2 A Brief History of Whole Life Insurance 3 Whole Life Basics

More information

Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance

Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance A CONSUMER GUIDE FOR ILLUSTRATION UNDERSTANDING IN JUVENILE GIFTING SCENARIOS: USING GUARDIAN WHOLE LIFE PAID-UP AT AGE 65

More information

CHAPTER 9 BUSINESS INSURANCE

CHAPTER 9 BUSINESS INSURANCE CHAPTER 9 BUSINESS INSURANCE Just as individuals need insurance for protection so do businesses. Businesses need insurance to cover potential property losses and liability losses. Life insurance also is

More information

Key Person, Split Dollar & Deferred Compensation Combination. Three Needs One Policy Presentation

Key Person, Split Dollar & Deferred Compensation Combination. Three Needs One Policy Presentation Three Needs One Policy Presentation Does the business identify with the following? The business relies on one or more executives for generating the bulk of the revenue or for acquiring most of the new

More information

Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance

Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance Give a Gift of a Lifetime Uncovering the Money Stages of Whole Life Insurance A CONSUMER GUIDE FOR ILLUSTRATION UNDERSTANDING IN JUVENILE GIFTING SCENARIOS: USING GUARDIAN WHOLE LIFE PAID-UP AT AGE 65

More information

ROTH IRA REQUIREMENTS

ROTH IRA REQUIREMENTS Regarding Roth Individual Retirement Annuity (IRA) Plans Described in Section 408A of the Internal Revenue Code This Disclosure Statement ( Disclosure ) presents a general overview of the federal laws

More information

Business Life Insurance Strategies Guide

Business Life Insurance Strategies Guide Business Life Insurance Strategies Guide Nationwide Business Solutions Group In this guide, Nationwide assumes that universal or variable universal life insurance is used for each of the strategies, unless

More information

Giving Today to Guarantee Tomorrow: Charitable Gifts of Life Insurance

Giving Today to Guarantee Tomorrow: Charitable Gifts of Life Insurance Giving Today to Guarantee Tomorrow: Charitable Gifts of Life Insurance A gift of life insurance can represent a substantial future gift to a favorite charity at relatively little cost to you. Table of

More information

THE TAX-FREE SAVINGS ACCOUNT

THE TAX-FREE SAVINGS ACCOUNT THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income

More information

The Colleges of the Seneca Financial Statements May 31, 2007 and 2006

The Colleges of the Seneca Financial Statements May 31, 2007 and 2006 Financial Statements PricewaterhouseCoopers LLP 1100 Bausch & Lomb Place Rochester NY 14604-2705 Telephone (585) 232 4000 Facsimile (585) 454 6594 Report of Independent Auditors To the Board of Trustees

More information