The Survivorship Universal Life Plan *
The Survivorship Universal Life Plan : offers the benefit of a permanent life insurance policy that protects two people with one policy. The death benefit is paid when the second death occurs. The plan may cost less than purchasing two individual plans for the security of those you love. Any two people who share a mutual financial interest can purchase the plan. This could include business partners, married couples or others with mutual financial interests. For a couple, this plan offers an affordable option to provide security for their legacy, and their estate can pass on to their heirs with less of a tax burden.
Some other possible advantages of this plan:
Tax-Free Death Benefits: Proceeds of the policy can pass to heirs free of income or capital gains tax. If the plan is properly structured, it can be possible to avoid estate taxes on policy proceeds as well.
Tax-Deferred Earnings: While your policy is in force, the cash building up in your policy is free of current income tax, thus helping your policy cash values grow faster.
Tax-Free Loans: The cash funds in your policy may be accessed with a policy loan, usually with no tax consequences, as your financial needs might require. We should remind you, though that any policy loans with a balance will reduce your cash surrender value and death benefit until re-paid in full.
Accumulated value Bonus: Policies with an unloaned accumulated value of $50,000 or more may be credited with an annual bonus equal to 0.5% of the unloaned accumulated value. When the accumulated value exceeds $250,000, an additional 0.5% bonus may be added. This bonus is not guaranteed in the policy and may not be available in all states.
The plan can be customized with these riders:
Additional Insurance Amount: This feature allows you to set up the plan to increase your specified death benefit each year, either by a flat amount or a percentage.
Joint First-to-Die Term Insurance: This uses the benefits of affordable term to meet any cash needs at the first death.
Estate Protector: This rider provides life insurance to cover the possible tax liability if the policy value is included in the gross estate for tax purposes. This could happen when there has been a transfer of the policy within the three-year period prior to the surviving insured's death.
Policy Split Option: Under certain condition, this rider allows your policy to be exchanged for two individual Universal Life policies without evidence of insurability. This may be neccessary in the event of a divorce or a change in tax laws. Each policy will be 50% of the total sum insured prior to the split.
* This information is given to assist persons in understanding the nature of this product type in general terms, and it must not be considered as a binding contract or a copy of the policy in any way. An issued life insurance contract (policy) that you have purchased from a life insurance company must be viewed as the only contract reflecting your policy, and it must be reviewed for its limitations and benefits between you and the life insurance company. Policy provisions may vary by state and may not be available in your state. Contact us for availability and a review of this plan of security for those you love. The above mentioned life policy is underwritten by Kansas City Life Insurance Company.
E-mail dphelps@phelpsfinancial.com
Phone (614) 899-6000 toll free 1-877-471-7997 for OH, MI, KY, IN, & WI
06/01/2005