Holidays, birthdays, high school graduations, weddings, college graduations, celebrating the birth of a new baby. How do you find the perfect gift for each occasion? Here’s a unique idea that will help you leave a lasting legacy: Life insurance.
While it may seem a little different than traditional gifts, our Whole Life Insurance can be right for any occasion. Here’s why:
- It can last a lifetime – and then some. Whole life insurance provides death benefit protection, creates a living legacy that will accumulate cash value year after year, and may help your child or grandchild get a head start on their financial future. And, if you choose from one of our limited payment options, the policy can be fully paid with a single premium or within 10, 15 or 20 years.
- It won’t wear out or fall apart. As long as you pay the policy premiums, the life insurance policy you purchase for your kids or grandkids today can still be there years from now – something that material things can’t provide.
- It has accumulation potential. Many gifts lose value over time. A permanent life insurance policy, on the other hand, has the potential to accumulate cash value each year. Cash values can be borrowed for any purpose — to provide a down payment on a first home, help pay for college, start a business or even to help fund a comfortable retirement years down the road 1. Keep in mind: Loans against your policy will accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest and withdrawals reduce the available death benefit.
- There are tax advantages. Cash values that accumulate in a life insurance policy are tax deferred. Even when cash values are borrowed, there may be no tax consequences in many instances. Additionally, proceeds received by beneficiaries are generally not taxable as income. Talk with your tax advisor for more details 2.
- Premium rates may never be lower. Premiums generally increase with age, but with permanent life insurance, it’s possible to lock in the premium at the insured person’s current age – for life.
- This policy can help guarantee future insurability. Once the life insurance policy has been issued, coverage cannot be canceled as long as all required premiums are paid on time. Additionally, if a Guaranteed Purchase Option Rider is included with the policy, the person insured can purchase more coverage at specified ages or life events with no medical exams or health questions. This can be especially significant if the insured’s health situation changes. Just think: You could be laying their future family’s financial foundation as well!
Ready to learn more? Our agents are here and happy to help answer your questions and provide guidance for your unique situation.
1Guarantees are backed by the financial strength and claims-paying ability of SBLI. Loans will reduce your net cash value and net death benefit and may be subject to interest charges. Unpaid loans are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty.
2This is designed for general informational purposes on the subjects covered and is not intended to be legal, tax, or investment advice. Information regarding the subjects covered may not constitute the most up-to-date available and no representations are made that the content is error-free. Further, pursuant to IRS Circular 230, it cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. You should consult your own legal, tax, or investment advisor regarding your personal situation.
Policy form series: 21-P-PWL & 21-P-PSPWL. Rider form series BN-9.
24-4184 (6/24)