Insurance. Survivorship Life. Insurance. The Company You Keep

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1 Insurance Survivorship Life Insurance The Company You Keep

2 Permanent Life Insurance Protection for Two People You ve built a legacy, but who will be the recipients your heirs or the IRS? 1 Now is the time to make sure your hardearned assets will go to those you want to have them. Survivorship life insurance can be a powerful tool in estate and business planning, helping to provide liquidity to protect your estate and grow your business after you re gone. Survivorship Life Insurance Offers: l Life insurance coverage for two people in one insurance plan l A death benefit that is generally free from federal income taxes to beneficiaries l Living benefits, including the accumulation of cash value that is not taxed as it grows cash value you can access through loans and withdrawals 2 l The ability to efficiently transfer assets to the next generation, or to a charity that s important to you l Death benefit proceeds that can help provide for the long-term financial care of a dependent with special needs, which can be vital, especially for those who may continue to need full-time care as adults How Survivorship Life Insurance Works Often referred to as second-todie life insurance, survivorship insurance covers two individuals and pays proceeds after the second death. By covering two individuals and paying only one death benefit, survivorship insurance can provide a more affordable alternative to individual life products. There s even the flexibility in some instances to offer coverage to a person who would be considered uninsurable under an individually underwritten life insurance policy. This can make survivorship life insurance an attractive estate and business planning tool. After the death of the first insured, the remaining insured continues to have insurance coverage, provided the premiums are paid. At the death of the second insured, the life insurance benefits paid can provide beneficiaries with needed funds to help pay bills they may be faced with: l Federal estate taxes, which can be substantial even at reduced rates 1 For 2011 and 2012, the federal estate tax exemption amount is $5 million. In 2010, there will be no estate tax. However, unless Congress and the president extend the current Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), beginning January 1, 2011, the estate, gift, and generation-skipping transfer taxes will be reinstated under the sunset provision in EGTRRA, and the estate tax exemption amount will go back to $1 million in Loans accrue interest at the current loan interest rate. Loans and partial surrenders reduce the total policy cash value and total life insurance benefit by the amount of the unpaid loan plus accrued loan interest or the amount of the partial surrender. 1

3 l State income taxes l State inheritance taxes l Medical expenses not covered by health insurance, including expenses incurred during catastrophic illness l Funeral and burial expenses l Outstanding debts l Probate court expenses l Administrative expenses l Fees for attorneys, trust officers, accountants, and other professionals on the client s estate planning team Survivorship life insurance is designed to provide heirs with the ready cash they ll need to cover such expenses. What Survivorship Life Insurance Can Do for You New York Life and its subsidiaries offer a portfolio of survivorship life insurance products that can help you meet your estate, business, charitable giving and other personal goals. Estate Planning Goals: Cash to Pay Estate Taxes and Estate Settlement Costs A survivorship policy may prevent the need to sell valuable assets, such as a home or family business, by providing your heirs with liquid assets to pay estate taxes and settlement costs after both insureds are deceased. Financial Support for Loved Ones You can customize your coverage to protect your loved ones. For example, you could purchase an optional first-to-die rider that would pay a death benefit on the death of either insured. Estate Equalization If one heir receives a large, non-liquid asset, such as real estate or a family business, a survivorship policy s death benefit can provide a comparable inheritance for other heirs. Business Continuation Goals: Assets to Buy Out a Partner s Share of Your Business If you select the first-to-die rider, the death benefit proceeds provided by the rider can provide the funds necessary for one business partner to purchase the business interest of the deceased partner. Provide Executive Benefits to Key Employees An employer can offer key executives a survivorship life insurance policy as a fringe benefit, protecting an executive and his or her spouse while potentially having minimal effect on the company s current cash flow and net earnings. Charitable Giving Goals: Funding for Trusts and Planned Gifting Establishment of an irrevocable life insurance trust and planned gifting can reduce estate tax liability. Charitable Giving Made Easier Than Ever You can help provide continued support to a charity by naming it as a beneficiary of the policy. 2

4 How Do You Know Which Product is Right for You? New York Life New York Life New York Life Custom Survivorship Survivorship Survivorship Survivorship Universal Life Variable Universal Feature Whole Life Universal Life Guarantee Life Accumulator Guaranteed Life Yes No Yes Yes, if optional Insurance Benefit rider is purchased Choice of Life Insurance No Yes Yes Yes Benefit Options Flexible Premium No Yes No Yes Eligible for Dividends Yes No No No Guaranteed Cash Value Yes Yes No Fixed Account only Tax-Deferred Cash Yes Yes Yes Yes Value Accumulation Choice of Investment No No No Yes Options This chart outlines the major differences across the four survivorship life insurance products and can help you identify which one may best suit your needs. Guarantees are based on the claims-paying ability of the insurer. Your Survivorship Life Insurance Product Choices Each of our survivorship life insurance policies is designed to help you meet specific objectives. Which survivorship product is best for you depends on your financial goals and preferences. Survivorship Whole Life offers taxdeferred cash value accumulation and a guaranteed death benefit amount. As a participating policy, Survivorship Whole Life is eligible for dividends, as declared by the Company. 3 (The amount of payable dividends is determined each year by New York Life.) New York Life Survivorship Universal Life 4 offers flexibility and comes with a 15 year No Lapse Guarantee rider. 5 You have the option of increasing or decreasing the face amount of your coverage and/or the frequency and the amount of your premium payments. 6 This can be an attractive feature, since financial circumstances are constantly changing. New York Life Custom Survivorship Universal Life Guarantee New York Life Custom Survivorship Universal Life Guarantee provides cost-effective death benefit protection with a built-in Custom Guarantee Benefit that lasts as long as you choose. By enabling you to select a guarantee period for life or a shorter time frame Custom Survivorship Universal Life Guarantee provides important flexibility for people seeking something less than a lifetime guarantee. It is available at face amounts of $250,000 or more. If you are interested in a long-term, customizable guarantee product, please contact your New York Life agent for more information. New York Life Survivorship Variable Universal Life Accumulator 4,8 offers the opportunity to help you meet your insurance and investment needs. In addition to providing a death benefit and flexibility 7 in your premium and benefit amounts, New York Life Survivorship Variable Universal Life Accumulator allows you to invest your premium payments among a variety of investment options including professionally managed stocks and bonds, as well as a Fixed Account with a guaranteed minimum interest rate. 3 Dividends are based on the policy s applicable dividend scale, which is neither guaranteed nor an estimate of future performance. Although dividends cannot be guaranteed, New York Life has paid annual dividends to policyowners for more than 150 successive years. 4 Issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation), a wholly owned subsidiary of New York Life Insurance Company. 5 The length of the guarantee will equal the surrender charge period. Surrender charges will decline over a period of 15 years and will be zero in policy year 16 and beyond. For issue ages over 75, the Surrender Charge duration grades down by 1 each year and is 5 years for issue ages 85 and over. Surrender charges are based on the issue age of the younger insured. 6 To increase your coverage, you may need to produce satisfactory evidence of insurability. Also, you will need to meet any other applicable underwriting requirements. Additional premiums may be limited. 7 Please keep in mind that this policy will terminate if at any time the cash surrender value is insufficient to pay the monthly deductions. This can happen due to insufficient premium payments, if loans or withdrawals are made, or if current interest rates or charges fluctuate. 8 Only offered by properly licensed Registered Representatives of NYLIFE Securities LLC (Member FINRA/SIPC), A Licensed Insurance Agency. 3

5 You decide where and how your money should be invested, which essentially gives you the maximum convenience professionally managed investments that you control. It is important to keep in mind that there are risks associated with investments in variable products, and assets allocated to the investment divisions may fluctuate in value. Decreases in the policy s cash value can negatively impact the policy s nonguaranteed death benefit. Please call your NYLIFE Securities Registered Representative for a New York Life Survivorship Variable Universal Life Accumulator product and funds prospectus. The policy involves insurance-related charges and expenses, such as the mortality and expense risk charge, which are explained in the prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. Both the product prospectus and the underlying funds prospectus contain this and other information about the product and underlying investment options. Please read the prospectuses carefully before investing. Is Survivorship Life Insurance Right for You? Survivorship life insurance offers an affordable way to provide the liquidity needed to protect your estate or business. It can help you ensure the legacy you ve built for your heirs will go to them, instead of to the IRS. Find out if survivorship life insurance should be a part of your estate plan. Our Family of Products Can Help Protect Your Family New York Life and its subsidiaries understand the importance of having enough money to meet your 4

6 financial obligations and pursue your personal goals. That s why we offer a variety of competitively priced insurance and financial products to meet your goals, whether protection for your loved ones, long-term care insurance, or retirement planning. Your financial future is important to us because it is important to you. For this reason, our New York Life agents and NYLIFE Securities financial services professionals among the best trained in the industry are committed to the clients they serve. Please speak to us about all of your insurance and financial needs, and how New York Life and its subsidiaries can help. New York Life: The Company You Keep When you purchase a product designed to protect you and your loved ones, you want that product to be backed by a strong insurance and financial services leader, one that will still be thriving 20, 30, 40 years from now and beyond. Since 1845, New York Life Insurance Company, the parent company of New York Life Insurance and Annuity Corporation (NYLIAC), has been providing quality insurance products to individuals, families and businesses. For more than 160 years, we have conducted our business around the central values of financial strength, integrity and humanity and have remained committed to being a mutual company, owned solely by our participating policyowners. This means that, regardless of the economy, our focus is fixed on just one objective: meeting the needs of our customers, now and far into the future. Talk to your New York Life agent today and find out why we are The Company You Keep. New York Life does not offer tax advice. Please consult with your own tax advisors about your particular situation. In most jurisdictions, the New York Life Survivorship Variable Universal Life Accumulator policy form number is ; the prospectus form number is In Oregon, the New York Life Survivorship Variable Universal Life Accumulator policy form number is

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8 New York Life Insurance Company New York Life Insurance and Annuity Corporation (A Delaware Corporation) 51 Madison Avenue New York, NY The Company You Keep 13725_0911 SMRU CV(Exp.09/06/13)