Life Insurance As An Asset - highlandbrokerage.com was not intended or written to be used, and...
2
LIFE SOLUTIONS 2067991 See how life insurance can help you diversify Concentrated stock fact finder The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association What are the Advantages of Life Insurance? 1) Life insurance death proceeds are typically paid income tax-free to the policy beneficiary 2) Life insurance policies owned by an irrevocable trust may avoid estate taxes 3) Premium $8,924 Premium Years Life Pay 1035 Exchange $0 Death Benefit $1,000,000 Income Tax Rate 35.0% To equal the economic value of the life insurance death benefit proceeds, equivalent annual contributions into a taxable investment would require higher yields and possibly greater risk. Client Assumptions Policy Assumptions Policy Type: Single Life Male Guaranteed Age 125 Life Expectancy: 83 Age 50 Preferred Non-Smoker 7.5% 7.1% 6.7% 6.4% 6.1% 5.8% 5.5% 5.2% 5.0% 4.7% 11.6% 11.0% 10.4% 9.8% 9.3% 8.9% 8.4% 8.0% 7.6% 7.3% 80 81 82 83 LE 84 85 86 87 88 89 Life Expectancy IRR on Death Benefit Pre-Tax Equivalent IRR Life Insurance As An Asset LIFE SOLUTIONS The Lincoln National Life Insurance Company Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association 2078816 Client Guide Help lower volatility and increase portfolio predictability Diversify your concentrated position Indexed Universal Life Insurance Excess Assets How Estate Maximization with Life Insurance Works 1,2 Net to Heirs Calculation Annuity Value $500,000 Annuity Value after 1st Premium $428,947 Life Insurance in ILIT $0 Life Insurance in ILIT $2,480,662 Federal Estate Tax ($200,000) Federal Estate Tax ($171,579) Income Tax (Assumed Liquidation) ($63,000) Income Tax (Assumed Liquidation) ($48,079) Net Amount to Heirs $237,000 Net Amount to Heirs $2,689,951 Shrinkage 52.6% Shrinkage 7.5% Percent to Heirs 47.4% Percent to Heirs 92.5% Guaranteed death benefits are subject to the claims-paying ability of the insurance carrier. Trusts should be drafted by an attorney familiar with such matters in order to take into account income, gift and estate tax laws (including generation skipping transfer tax). Failure to do so could result in adverse tax treatment of trust proceeds. Do you have assets that you intend on passing to your heirs because you don't need them to sustain your current standard of living? Do these "excess assets" include annuities, certificates of deposits (CDs), municipal bonds, bond portfolios, IRAs, or qualified plans? Would you consider repositioning these excess assets so that you can potentially pass more wealth to your heirs? Current Plan - Today Proposed Plan - Today 40.0% 12.6% 47.4% Federal Estate Tax Income Tax Net Amount to Heirs 5.9% 1.7% 92.5% Federal Estate Tax Income Tax Net Amount to Heirs Estate Maximization Irrevocable Life Insurance Trust (ILIT) Client / Grantor Heirs Life Insurance Company Annual Premium ($46,184) Death Benefit ($2,480,662) Death Benefit ($2,480,662) Gift After-Tax Proceeds from Withdrawal / Annual Premium ($46,184) Remaining Asset Value General characteristics of the ideal client ■ Annuity no longer under a surrender period? ■ Has an annuity value of $200,000 or more? ■ Have a net worth in excess of $1,500,000? ■ Enjoy meaningful cash flows from employer pensions and social security? ■ Are more interested in transferring their assets than generating income? ■ Are age 65 and above and are generally healthy? ■ Often discuss family or charitable events during investment reviews? Annuity Irrevocable Life Insurance Trust (ILIT) Heirs Life Insurance Policy After Tax Distribution After Tax Distribution to Annuity Owner 1 4 2 3 4 1a Estate planning strategies using life insurance Deleveraging annuities— A strategy to help maximize and preserve your legacy Objective To utilize a financial planning strategy intended to restructure an individual’s or couple’s current annuity holdings, leading to their wealth passing to their heirs, while at the same time reducing their income, estate and inheritance taxes. Generally, income is not needed from the annuity for retirement, yet you may still wish to maintain access to annuity values. 1. Annuity owner gifts a portion of the after-tax distribution from the annuity to the ILIT.The annuity distribution is taxed to the recipient and then gifted to the Irrevocable Life Insurance Trust (ILIT). 1a. Distributions in excess of premiums may be used for living expenses, reducing taxable estate to heirs. 2. The trustee of the ILIT uses the annual gifts to purchase a life insurance policy on the annuity owner or annuity owner and spouse naming the ILIT as owner and beneficiary. Gift tax may be reduced or eliminated by using any available unified credit or annual exclusion amounts. 3. At the annuity owner’s or annuity owner’s and spouse’s death, life insurance proceeds pass income and estate tax free to the ILIT. 4. ILIT beneficiaries, per the trust’s terms, receive the trust assets. In addition, any remaining annuity proceeds held outside of the ILIT will pass to the heirs after any income and estate taxes have been paid. How it works Year End of Year AgeDeath Benefit IRR 25 75 6.83% 30 80 5.66% 33 83 (LE) 5.13% 38 88 (LE + 5) 4.44% 40 90 4.21% 45 95 3.74% 50 100 3.36% Mr. Client, 50, owns 30,000 shares of concentrated stock position — valued at $100.00 a share, cost basis of $20.00. These assets are earmarked for his children, but with the overall volatility of the markets he is looking for help to minimize risk. Solution — reposition 7,500 shares or 25% of his stock position, worth $750,000. Total capital gains rate: 15%. Net after-tax proceeds would be $660,000, which is used to purchase a life insurance policy with a death benefit of $3,439,572. Highland Capital Brokerage does not offer tax or legal advice. Clients should consult with their individual tax and legal professionals prior to entering into such transactions. Circular 230: U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein. The hypothetical case study results are for illustrative purposes only and should not be deemed a representation of past or future results. This example does not represent any specific product, nor does it reflect sales charges or other expenses that may be required for some investments. 109776 exp. 11/14 15 65 11.63% 20 70 INTERNAL RATE OF RETURN (IRR) 1 51 421.15% 8.60% 5 1. Life expectancy (LE) for a 50, male, Preferred Non-Smoker is 33 years under the 2001 CSO Mortality Table. All numbers shown as dollars are in US currency. Guarantees subject to the claims paying ability of the issuing insurance company. Securities & Investment Advisory Services may be offered through Representatives of NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. NFP Securities, Inc. and Highland Capital Brokerage are not affiliated. Not all of the individuals using this material are registered to offer securities products or advisory services through NFP Securities, Inc. 55 39.12% 10 60 17.95% $100.00 $458.61 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Current Share Price Dollar Change Equivalent $750,000 Value of 7,500 shares at $100.00 a share $660,000 Reposition net capital gains tax, to life insurance $3,439,572 Life insurance death benefit protection - Per share value needed to equal insurance Life insurance death benefit leverage Single Premium Capital Gains Tax at 15% $458.61 358.6% Concentrated Stock Position IRA Maximization Objective To implement a strategy with the intention of minimizing an individual’s tax liability for future generations while maintaining control and access to your IRA. This is important because a combination of estate and income taxes could reduce these proceeds by up to 70 percent since IRA’s receive no “step up in basis” upon death and the monies in the IRA are includable in your estate for the purpose of determining your heirs’ estate tax liability. How it works 1. IRA owner takes annual distributions and gifts a portion of the after-tax distribution to an ILIT.The distribution from the IRA may remove that asset from the taxable estate of the owner. 1a. Distributions in excess of premiums may be used for living expenses, reducing taxable estate to heirs. 2. The trustee of the ILIT uses the annual gifts to purchase a life insurance policy on the IRA owner as the insured and naming the ILIT as owner and beneficiary. Gift tax may be reduced or eliminated by using any available unified credit or annual exclusion amounts. 3. At the IRA owner’s death, life insurance proceeds may pass income and estate tax free to the ILIT. 4. ILIT beneficiaries, per the trust terms, receive the trust assets. 5. In addition, any remaining IRA balance held outside of the ILIT will pass to the heirs after any income and estate taxes have been paid. Distributions from the IRA to heirs may also be subject to income tax. Traditional IRA After Tax Distribution to IRA Owner After Tax Distribution Irrevocable Life Insurance Trust (ILIT) Heirs Life Insurance Policy 1 2 3 4 5 1a General characteristics of the ideal client ■ Is age 65 or older and is generally healthy? ■ Has an IRA value of $200,000 or more? ■ Have a net worth in excess of $1,500,000? ■ Have complained about having to take distributions from their IRAs? ■ Enjoy meaningful cash flows from employer pensions and social security? ■ Are more interested in transferring their assets than generating income? ■ Often discuss family or charitable events during investment reviews? Estate planning strategies using life insurance The dilemma Many people who have been successful in saving for retirement have established a large enough nest-egg to be able to create a legacy for their children, grandchildren and favorite charities, leaving them to wonder how to best leverage their qualified or tax advantaged retirement plans. A common question is whether IRA owners should take larger withdrawals and pay income taxes now, or whether they should take out as little as possible during their lifetime, leaving a likely income tax burden for their heirs and beneficiaries. When is the best time to pay income taxes on an IRA? HCB Solutions: Life Insurance As An Asset Lincoln Financial Concentrated Stock Position Fact Finder HCB Life Insurance As An Asset: Example Lincoln Financial Concentrated Stock Position Flyer HCB Creating A Legacy Floor HCB Estate Maximization Pacific Life Annuity Maximization American General Deleveraging Annuities HCB Concentrated Stock Position Pacific Life Framing Your Legacy American General IRA Maximization American General IRA Strategies Brochure Life Insurance As An Asset RESOURCES AVAILABLE TO YOU THROUGH HIGHLAND CAPITAL BROKERAGE Intended Inheritance Fixed Assets Portfolio Assets Current Shortfall Income Tax Rate: 35.0% $2,000,000 Male Age 60 & Female Age 60 $2,500,000 Preferred Non-Smoker & Preferred Non-Smoker $500,000 Do you have a specific minimum inheritance amount (Legacy Floor) that you intend on leaving to your heirs? What if you die early and don’t have enough time to build up the value of your assets? If you set aside a small portion of your growing assets to make sure that you met your goals, would you be interested in hearing about it? Asset and Goal Assumptions Creating a Legacy Floor 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 61 / 61 65 / 65 70 / 70 75 / 75 80 / 80 85 / 85 90 / 90 95 / 95 100 / 100 To Heirs Reinvest Assets Legacy Floor through Life Insurance Legacy Goal Less Fixed Assets continued
Transcript of Life Insurance As An Asset - highlandbrokerage.com was not intended or written to be used, and...
L IFE SOLUTIONS
2067991
See how life insurance can help you diversify
Concentrated stock fact finder
The Lincoln National Life Insurance CompanyLincoln Life amp Annuity Company of New York
Not a deposit Not FDIC-insured May go down in value
Not insured by any federal government agency
Not guaranteed by any bank or savings association
What are the Advantages of Life Insurance1) Life insurance death proceeds are typically paid income tax-free to the policy beneficiary
2) Life insurance policies owned by an irrevocable trust may avoid estate taxes
3)
Premium $8924
Premium Years Life Pay
1035 Exchange $0
Death Benefit $1000000
Income Tax Rate 350
To equal the economic value of the life insurance death benefit proceeds equivalent annualcontributions into a taxable investment would require higher yields and possibly greater risk
Client Assumptions Policy Assumptions
Policy Type Single Life
Male
Guaranteed Age 125Life Expectancy 83
Age 50
Preferred Non-Smoker
75 71
67 64
61 58
55 52 50 47
116 110
104 98
93 89
84 80
76 73
80 81 82 83LE
84 85 86 87 88 89
Life Expectancy IRR on Death Benefit Pre-Tax Equivalent IRR
Life Insurance As An Asset
L IFE SOLUTIONS
The Lincoln National Life Insurance Company
Not a deposit Not FDIC-insured May go down in value
Not insured by any federal government agency
Not guaranteed by any bank or savings association
2078816
Client Guide
Help lower volatility and increase portfolio predictability
Diversify your concentrated position
Indexed Universal Life Insurance
Excess Assets
How Estate Maximization with Life Insurance Works12
Net to Heirs Calculation
Annuity Value $500000 Annuity Value after 1st Premium $428947Life Insurance in ILIT $0 Life Insurance in ILIT $2480662Federal Estate Tax ($200000) Federal Estate Tax ($171579)Income Tax (Assumed Liquidation) ($63000) Income Tax (Assumed Liquidation) ($48079)
Net Amount to Heirs $237000 Net Amount to Heirs $2689951
Shrinkage 526 Shrinkage 75
Percent to Heirs 474 Percent to Heirs 925
2Guaranteed death benefits are subject to the claims-paying ability of the insurance carrier
1Trusts should be drafted by an attorney familiar with such matters in order to take into account income gift and estate tax laws (including generation skipping transfer tax) Failure to do so could result in adverse tax treatment of trust proceeds
Do you have assets that you intend on passing to your heirs because you dont need them to sustain your current standard of livingDo these excess assets include annuities certificates of deposits (CDs) municipal bonds bond portfolios IRAs or qualified plansWould you consider repositioning these excess assets so that you can potentially pass more wealth to your heirs
Current Plan - Today Proposed Plan - Today
400
126
474
Federal Estate Tax Income Tax Net Amount to Heirs
59 17
925
Federal Estate Tax Income Tax Net Amount to Heirs
Estate Maximization
Irrevocable Life Insurance Trust (ILIT) Client Grantor
Heirs Life Insurance Company
Annual Premium ($46184)
Death Benefit
($2480662)
Death Benefit ($2480662)
Gift After-Tax Proceeds from Withdrawal Annual
Premium ($46184)
Remaining Asset Value
General characteristics of the ideal client
Annuity no longer under a surrender period
Has an annuity value of $200000 or more
Have a net worth in excess of $1500000
Enjoy meaningful cash flows from employer pensions and social security
Are more interested in transferring their assets than generating income
Are age 65 and above and are generally healthy
Often discuss family or charitable events during investment reviews
Annuity
Irrevocable LifeInsurance Trust (ILIT)
Heirs
Life Insurance Policy
After Tax Distribution
After Tax Distribution to Annuity Owner
1
42
3
4
1a
Estate planning strategies using life insurance
Deleveraging annuitiesmdash
A strategy to help maximize and preserve your legacy
ObjectiveTo utilize a financial planning strategy intended to restructure an individualrsquos or couplersquos current annuity holdings leading to their wealth passing to their heirs while at the same time reducing their income estate and inheritance taxes Generally income is not needed from the annuity for retirement yet you may still wish to maintain access to annuity values
1 Annuity owner gifts a portion of the after-tax distribution from the annuity to the ILIT1 The annuity distribution is taxed to the recipient and then gifted to the Irrevocable Life Insurance Trust (ILIT)
1a Distributions in excess of premiums may be used for living expenses reducing taxable estate to heirs
2 The trustee of the ILIT uses the annual gifts to purchase a life insurance policy on the annuity owner or annuity owner and spouse naming the ILIT as owner and beneficiary Gift tax may be reduced or eliminated by using any available unified credit or annual exclusion amounts
3 At the annuity ownerrsquos or annuity ownerrsquos and spousersquos death life insurance proceeds pass income and estate tax free to the ILIT
4 ILIT beneficiaries per the trustrsquos terms receive the trust assets In addition any remaining annuity proceeds held outside of the ILIT will pass to the heirs after any income and estate taxes have been paid
How it works
YearEnd of Year
Age1Death Benefit
IRR
25 75 683
30 80 566
33 83 (LE) 513
38 88 (LE + 5) 444
40 90 421
45 95 374
50 100 336
Mr Client 50 owns 30000 shares of concentrated stock position mdash valued at $10000 a share cost basis of $2000 These assets are earmarked for his children but with the overall volatility of the markets he is looking for help to minimize risk
Solution mdash reposition 7500 shares or 25 of his stock position worth $750000 Total capital gains rate 15 Net after-tax proceeds would be $660000 which is used to purchase a life insurance policy with a death benefit of $3439572
Highland Capital Brokerage does not offer tax or legal advice Clients should consult with their individual tax and legal professionals prior to entering into such transactions Circular 230 US Federal tax advice contained in this communication unless otherwise specifically stated was not intended or written to be used and cannot be used for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting marketing or recommending to another party any matters addressed herein
The hypothetical case study results are for illustrative purposes only and should not be deemed a representation of past or future results This example does not represent any specific product nor does it reflect sales charges or other expenses that may be required for some investments
109776 exp 1114
15 65 1163
20 70
INTERNAL RATE OF RETURN (IRR)
1 51 42115
860
5
1 Life expectancy (LE) for a 50 male Preferred Non-Smoker is 33 years under the 2001 CSO Mortality Table All numbers shown as dollarsare in US currency Guarantees subject to the claims paying ability of the issuing insurance company
Securities amp Investment Advisory Services may be offered through Representatives of NFP Securities Inc (NFPSI) Member FINRASIPC NFP Securities Inc and Highland Capital Brokerage are not affiliated Not all of the individuals using this material are registered to offer securities products or advisory services through NFP Securities Inc
55 3912
10 60 1795
$10000
$45861
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Current Share Price Dollar Change Equivalent
$750000 Value of 7500 shares
at $10000 a share
$660000 Reposition net capital
gains tax to life insurance
$3439572 Life insurance death benefit protection
- Per share value needed to equal insurance
Life insurance death benefit leverage
Single Premium
Capital Gains Tax at 15
$45861
3586
Concentrated Stock Position
IRA MaximizationObjectiveTo implement a strategy with the intention of minimizing an individualrsquos tax liability for future generations while maintaining control and access to your IRA This is important because a combination of estate and income taxes could reduce these proceeds by up to 70 percent since IRArsquos receive no ldquostep up in basisrdquo upon death and the monies in the IRA are includable in your estate for the purpose of determining your heirsrsquo estate tax liability
How it works
1 IRA owner takes annual distributions and gifts a portion of the after-tax distribution to an ILIT1 The distribution from the IRA may remove that asset from the taxable estate of the owner
1a Distributions in excess of premiums may be used for living expenses reducing taxable estate to heirs
2 The trustee of the ILIT uses the annual gifts to purchase a life insurance policy on the IRA owner as the insured and naming the ILIT as owner and beneficiary Gift tax may be reduced or eliminated by using any available unified credit or annual exclusion amounts
3 At the IRA ownerrsquos death life insurance proceeds may pass income and estate tax free to the ILIT
4 ILIT beneficiaries per the trust terms receive the trust assets
5 In addition any remaining IRA balance held outside of the ILIT will pass to the heirs after any income and estate taxes have been paid Distributions from the IRA to heirs may also be subject to income tax
Traditional IRA After Tax Distribution to IRA Owner
After Tax Distribution Irrevocable LifeInsurance Trust (ILIT)
Heirs
Life Insurance Policy
1
23
4
5
1a General characteristics of the ideal client
Is age 65 or older and is generally healthy
Has an IRA value of $200000 or more
Have a net worth in excess of $1500000
Have complained about having to take distributions from their IRAs
Enjoy meaningful cash flows from employer pensions and social security
Are more interested in transferring their assets than generating income
Often discuss family or charitable events during investment reviews
Estate planning strategies using life insurance
The dilemma
Many people who have been successful in saving for retirement have established a large enough nest-egg to be able to create a legacy for their children grandchildren and favorite charities leaving them to wonder how to best leverage their qualified or tax advantaged retirement plans
A common question is whether IRA owners should take larger withdrawals and pay income taxes now or whether they should take out as little as possible during their lifetime leaving a likely income tax burden for their heirs and beneficiaries
When is the best time to pay income taxes on an IRA
HCB Solutions Life Insurance As An Asset
Lincoln FinancialConcentrated Stock Position Fact Finder
HCB Life InsuranceAs An Asset Example
Lincoln FinancialConcentrated Stock
Position Flyer
HCB Creating ALegacy Floor
HCB Estate Maximization
Pacific Life Annuity Maximization
American GeneralDeleveraging Annuities
HCB ConcentratedStock Position
Pacific Life Framing Your Legacy
American GeneralIRA Maximization
American GeneralIRA Strategies Brochure
Life Insurance As An Asset RESOURCES AVAILABLE TO YOU THROUGH HIGHLAND CAPITAL BROKERAGE
Intended Inheritance
Fixed Assets
Portfolio AssetsCurrent Net Worth
Legacy Goal
Legacy Goal Less Fixed Assets
Current Shortfall
Annual Living Expenses $60000 $4500000Income Tax Rate 350 $2000000
Male Age 60 amp Female Age 60 $2500000Preferred Non-Smoker amp Preferred Non-Smoker $3000000
Joint Life Expectancy 92 $5000000
Policy Type Survivorship $500000
Do you have a specific minimum inheritance amount (Legacy Floor) that you intend on leaving to your heirsWhat if you die early and donrsquot have enough time to build up the value of your assetsIf you set aside a small portion of your growing assets to make sure that you met your goals would you be interested in hearing about it
Client Assumptions Asset and Goal Assumptions
Creating a Legacy Floor
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
61 61 65 65 70 70 75 75 80 80 85 85 90 90 95 95 100 100
To
He
irs
Reinvest Assets Legacy Floor through Life Insurance Legacy Goal Less Fixed Assets
continued
Important Notes
Prudential the Prudential logo and the Rock symbol are service marks ofPrudential Financial Inc and its related entitiescopy 2014 Prudential Financial Inc and its related entities
0255926 0255926-00001-00 Ed 012014 Exp 07062015
The financial professional using this material may be an agent operating under his or her own firm which is not an affiliate of Prudential Financial or may be an independent broker The financial professional may sell life insurance products of Prudential Financials affiliated life insurance companies in addition to other life insurance companies products The financial professional is authorized to use this material to sell and service certain life insurance products of Prudential Financials affiliated life insurance companies
Securities and Insurance ProductsNot Insured by FDIC or Any Federal Government Agency May Lose Value
Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate
Asset Protection +
This material is designed by The Prudential Insurance Company of America to help you better identify your potential life insurance needs This material is designed to provide general information in regard to the subject matter covered It should be used with the understanding that it does not constitute legal accounting or tax advice Such services should be provided by your own legal accounting and tax advisors Accordingly information in this document cannot be used for purposes of avoiding penalties under the Internal Revenue Code
Life insurance is issued by The Prudential Insurance Company of America and its affiliates All are Prudential Financial companies located in Newark NJ and each is solely responsible for its own financial condition and contractual obligations Life insurance policies contain exclusions limitations reductions of benefits and terms for keeping them in force Your financial professional can provide you with costs and complete details The availability of other products and services varies by carrier and state
For IRAs and qualified plans if the spouse is the sole beneficiary and is 10 years or more younger than the owner different tables are permitted for the calculation of Required Minimum Distributions (RMDs) which would reduce the amount of RMD This analysis does not include use of such tables if applicable
Wealth Transfer Costs with Leveraged Gifts
TAXES COSTS
LIM-1190 813
Not a bank or credit union deposit or obligation Not insured by any federal government agency
Not FDIC or NCUANCUSIF insured Not guaranteed by any bank or credit union May lose value
Creating a predictable legacy in an unpredictable world
Life Insurance as an Asset Class
Name DOB
State Gender M F
Underwriting Class(select one)
Super Preferred Non-Nicotine Preferred Non-Nicotine Standard Plus Non-Nicotine
Standard Non-Nicotine Preferred Nicotine Standard Nicotine
Select the preferred solve design (either ldquoDeath Benefitrdquo or ldquoPremiumrdquo)
Death Benefit Solve (if chosen complete info at right)
Solve for (select one)
Lapse Protection Benefit for _____ years or to age ____ Cash Value of $ in year _____ or to age ____
Specifications (select one)
Specify premium $ for _____ years or to age ____
Premium Solve (if chosen complete info at right)
Specifications
Death Benefit $ ___________ Premium Duration ____ years or to age ____
Solve for (select one)
Lapse Protection Benefit for ____ years or to age ____ Cash value of $ ____________ in ____ years or to age ____
Death Benefit Option (select one)
A-Level B-Increasing C-Return of Premium (not available with LPB)
Name
Company
Phone
Notes ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Symetra Life Insurance Company 777 108th Avenue NE Suite 1200 Bellevue WA 98004-5135wwwsymetracom Symetrareg is a registered service mark of Symetra Life Insurance Company
Symetra Classic Universal Life Insurance is a flexible premium universal life policy issued by Symetra Life Insurance Company 777 108th Avenue NE Suite 1200 Bellevue WA 98004 Policy form number is ICC11_LC5 in most states Not available in all states or any territory
Client Information
Symetra Classic Universal Life
Insurance
Presenter Information
Additional Details
Once completed email to lifesalessymetracom or fax to (781) 894-0700 Life Sales Desk1-877-737-3611Monday - Friday 8 am to 6 pm ETlifesalessymetracom
AGENT AND ADVISOR USE ONLYLIM-1091LIAC 813
Please provide the following client information Remember accurate data will enhance the value of your clientrsquos customized analysis
Fact Finder
Life Insurance as an Asset Class
Life Insurance as an Asset Class
Using life insurance to create a predictable legacy
In times of economic uncertainty many individuals turn to life insurance to help stabilize their investment portfolios Why
The death benefi t paid to benefi ciaries is based on a combination of conservative investments and the mortality predictions derived from actuarial tables In other words the life insurance carrierrsquos ability to estimate the time of death of those who pay into a life insurance pool means the policyrsquos proceeds are largely insulated from the marketrsquos ups and downs
Additionally if properly structured in a trust that exists outside of the taxable estate the death benefi t proceeds are paid to the trust free of federal income and estate taxes
continued gt
LIM-1191 813AGENT AND ADVISOR USE ONLY
ExampleInternal Rates of Return (IRR) on $2 Million Death Benefit12
When used as an estate-planning tool a life insurance policyrsquos proceeds will often yield a more competitive rate of return compared to legacy assets held in a taxable investment
83 84 85 86 87 88 89 90 91 92 93
Age at Which Death Occurs
For a 60-year-old male by life expectancy (age 83) the probability of death occurring is 493
LifeExpectancy
Pre-tax IRR
1231
After-tax IRR
80
114
105
97
89
83
7772
6762
58
74
68
6358
5450
4744
4038
Pacific Life Maximizing IRA Assets to Hiers
Prudential Final Asset Protection Calculator
Prudential Complete The Dream Presentation
Prudential AssetProtection+ Presentation
Symetra Life Insurance As An Asset Class Brochure
Symetra Life Insurance As An Asset Class Fact Finder
Symetra Life Insurance As An Asset Class Flyer
Page 2 of 2
Life Insurance As An Asset RESOURCES AVAILABLE TO YOU THROUGH HIGHLAND CAPITAL BROKERAGE
Visit HCBLifecom and click on lsquoHCB Marketing Campaignsrsquo for more information
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Typewritten Text
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215
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Important Notes
Prudential the Prudential logo and the Rock symbol are service marks ofPrudential Financial Inc and its related entitiescopy 2014 Prudential Financial Inc and its related entities
0255926 0255926-00001-00 Ed 012014 Exp 07062015
The financial professional using this material may be an agent operating under his or her own firm which is not an affiliate of Prudential Financial or may be an independent broker The financial professional may sell life insurance products of Prudential Financials affiliated life insurance companies in addition to other life insurance companies products The financial professional is authorized to use this material to sell and service certain life insurance products of Prudential Financials affiliated life insurance companies
Securities and Insurance ProductsNot Insured by FDIC or Any Federal Government Agency May Lose Value
Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate
Asset Protection +
This material is designed by The Prudential Insurance Company of America to help you better identify your potential life insurance needs This material is designed to provide general information in regard to the subject matter covered It should be used with the understanding that it does not constitute legal accounting or tax advice Such services should be provided by your own legal accounting and tax advisors Accordingly information in this document cannot be used for purposes of avoiding penalties under the Internal Revenue Code
Life insurance is issued by The Prudential Insurance Company of America and its affiliates All are Prudential Financial companies located in Newark NJ and each is solely responsible for its own financial condition and contractual obligations Life insurance policies contain exclusions limitations reductions of benefits and terms for keeping them in force Your financial professional can provide you with costs and complete details The availability of other products and services varies by carrier and state
For IRAs and qualified plans if the spouse is the sole beneficiary and is 10 years or more younger than the owner different tables are permitted for the calculation of Required Minimum Distributions (RMDs) which would reduce the amount of RMD This analysis does not include use of such tables if applicable
Wealth Transfer Costs with Leveraged Gifts
TAXES COSTS
LIM-1190 813
Not a bank or credit union deposit or obligation Not insured by any federal government agency
Not FDIC or NCUANCUSIF insured Not guaranteed by any bank or credit union May lose value
Creating a predictable legacy in an unpredictable world
Life Insurance as an Asset Class
Name DOB
State Gender M F
Underwriting Class(select one)
Super Preferred Non-Nicotine Preferred Non-Nicotine Standard Plus Non-Nicotine
Standard Non-Nicotine Preferred Nicotine Standard Nicotine
Select the preferred solve design (either ldquoDeath Benefitrdquo or ldquoPremiumrdquo)
Death Benefit Solve (if chosen complete info at right)
Solve for (select one)
Lapse Protection Benefit for _____ years or to age ____ Cash Value of $ in year _____ or to age ____
Specifications (select one)
Specify premium $ for _____ years or to age ____
Premium Solve (if chosen complete info at right)
Specifications
Death Benefit $ ___________ Premium Duration ____ years or to age ____
Solve for (select one)
Lapse Protection Benefit for ____ years or to age ____ Cash value of $ ____________ in ____ years or to age ____
Death Benefit Option (select one)
A-Level B-Increasing C-Return of Premium (not available with LPB)
Name
Company
Phone
Notes ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Symetra Life Insurance Company 777 108th Avenue NE Suite 1200 Bellevue WA 98004-5135wwwsymetracom Symetrareg is a registered service mark of Symetra Life Insurance Company
Symetra Classic Universal Life Insurance is a flexible premium universal life policy issued by Symetra Life Insurance Company 777 108th Avenue NE Suite 1200 Bellevue WA 98004 Policy form number is ICC11_LC5 in most states Not available in all states or any territory
Client Information
Symetra Classic Universal Life
Insurance
Presenter Information
Additional Details
Once completed email to lifesalessymetracom or fax to (781) 894-0700 Life Sales Desk1-877-737-3611Monday - Friday 8 am to 6 pm ETlifesalessymetracom
AGENT AND ADVISOR USE ONLYLIM-1091LIAC 813
Please provide the following client information Remember accurate data will enhance the value of your clientrsquos customized analysis
Fact Finder
Life Insurance as an Asset Class
Life Insurance as an Asset Class
Using life insurance to create a predictable legacy
In times of economic uncertainty many individuals turn to life insurance to help stabilize their investment portfolios Why
The death benefi t paid to benefi ciaries is based on a combination of conservative investments and the mortality predictions derived from actuarial tables In other words the life insurance carrierrsquos ability to estimate the time of death of those who pay into a life insurance pool means the policyrsquos proceeds are largely insulated from the marketrsquos ups and downs
Additionally if properly structured in a trust that exists outside of the taxable estate the death benefi t proceeds are paid to the trust free of federal income and estate taxes
continued gt
LIM-1191 813AGENT AND ADVISOR USE ONLY
ExampleInternal Rates of Return (IRR) on $2 Million Death Benefit12
When used as an estate-planning tool a life insurance policyrsquos proceeds will often yield a more competitive rate of return compared to legacy assets held in a taxable investment
83 84 85 86 87 88 89 90 91 92 93
Age at Which Death Occurs
For a 60-year-old male by life expectancy (age 83) the probability of death occurring is 493
LifeExpectancy
Pre-tax IRR
1231
After-tax IRR
80
114
105
97
89
83
7772
6762
58
74
68
6358
5450
4744
4038
Pacific Life Maximizing IRA Assets to Hiers
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Symetra Life Insurance As An Asset Class Brochure
Symetra Life Insurance As An Asset Class Fact Finder
Symetra Life Insurance As An Asset Class Flyer
Page 2 of 2
Life Insurance As An Asset RESOURCES AVAILABLE TO YOU THROUGH HIGHLAND CAPITAL BROKERAGE
Visit HCBLifecom and click on lsquoHCB Marketing Campaignsrsquo for more information
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