Patriot 100. Whole Life Insurance LL-2376 (07/13)

Transcription

1 C e n t e n n i a l S e r i e s Whole Life Insurance LL-2376 (07/13)

2 Financial Security for a Lifetime Throughout your lifetime you will acquire many different types of assets to meet current or future financial needs and sometimes both. However, people often purchase life insurance to meet only one financial need to help secure their families financial future with death benefit protection. They may not consider how purchasing whole life insurance could help them address other financial concerns as well. Whole Life Insurance offers a unique combination of guaranteed death benefit protection, guaranteed cash value accumulation, and guaranteed level premiums over a lifetime. Plus, generally available tax advantages that differentiate it from most other types of financial assets, such as: Income tax-free death benefit to a beneficiary Tax-deferred cash value growth Whole life insurance also often provides the opportunity for policy loans and withdrawals from cash value. 1 Whether you re starting a family or preparing for retirement, whole life insurance may be the financial solution. Solutions for Changing Needs Starting a Family One of the largest financial concerns among young families is the premature death of the primary wage earner. What would happen to the family? How would they pay for funeral costs, uncovered medical expenses, unpaid debt or routine expenses, such as food, housing, health care and clothing? Whole life insurance offers a guaranteed death benefit that helps ensure the family s financial future is protected. Education Funding Giving your child a loan-free college education is a tremendous advantage and gift. Over time a whole life policy will accumulate a tax-deferred cash value that can be accessed through policy loans or withdrawals to help fund these expenses. 1, 2 Prepare with a Solid Plan Current financial need: Provide financial protection for the family should John die prematurely. Long-term financial need: Build cash value to supplement retirement income. Solution: John s current whole life insurance policy with another carrier does not meet his current or long-term needs and can be exchanged to a new Patriot 100 (WL-05-75) whole life policy. The exchange process will carry over the current cash value basis to their new policy, which can be an advantage in later years when they may want to take withdrawals 1, 2 from the policy to supplement retirement income. The new policy s death benefit provides the right amount of coverage the family will need to maintain their standard of living. 1 Withdrawal amounts up to the policy s cost basis can be received on a tax-favored basis. If the policy is, or later becomes a modified endowment contract, withdrawals and policy loans may be taxed and subject to tax penalties. The termination or surrender of a policy with an unpaid loan balance may result in taxable income. Always consult an attorney or tax advisor regarding your specific legal or tax situation. Loans, interest on loans, and withdrawals will reduce the death benefit if not repaid. Interest on policy loans is paid to Lafayette Life and does not increase the policy s cash value. 2 Loans, interest on loans, and withdrawals will reduce the death benefit if not repaid. Loans are secured by the policy s cash value and will be charged interest, which is paid to The Lafayette Life Insurance Company and does not increase the policy s cash value. An unpaid loan balance may result in policy termination. The Frost Family Ages: John, 49; Laura, 43 Children: Brad, 16; Emily, 19 Occupations: Sales Representative, Homemaker

3 Flexibility To Meet Any of Life s Challenges Current financial need: Reallocate assets to help provide sufficient retirement income and health care cost protection. Long-term financial need: Develop an estate plan that can reduce estate taxes. Solution: Use a portion of their assets to purchase an immediate annuity, as well as a Patriot 100 (WL-05-75) whole life policy with a Long-Term Care Rider (LTC-WL20) and Accelerated Benefit Rider (ABR 92). The annuity as well as the cash value of the whole life policy can be used to help provide sufficient income during retirement. In addition, the riders on the whole life policy can help protect you from unplanned medical costs. Lastly, the guaranteed death benefit of the whole life policy passes income tax-free to the beneficiaries for estate planning purposes. Patriot 100 Features and Options Retirement Funding Over the long term, many people find their need for death benefit protection has diminished. Their children are all grown, and diligent savings throughout their life has resulted in sufficient funds for a spouse or beneficiary. Accessing the tax-deferred cash value of a whole life policy through loans and withdrawals 2 can be an efficient way to supplement one s income during retirement without depleting other assets. The Williams Family Ages: Greg, 68; Meredith, 65 Occupations: Retired Lawyer, Retired Office Manager Legacy Planning Controlling how wealth, accumulated over a lifetime, is managed after one s death is what effective legacy planning is all about. A whole life policy is a taxefficient way to fund an estate. The total death benefit of the policy minus any policy loans, unpaid interest on loans, and withdrawals generally passes tax-free to the beneficiaries. Therefore, more funds are available to assist the people, or charitable organizations, the policy owner cared about during their life. Guaranteed, Fixed Level Premiums. Premiums are guaranteed not to increase even as you grow older or your health declines. The premium you pay at issue will be the same premium you pay in later years. Guaranteed, Lifetime Coverage. 3 When you purchase a Patriot 100 policy, you are helping to ensure insurance protection for your entire life. As long as premiums are paid and policy loans and unpaid interest on loans do not exceed the total cash value, your coverage cannot be terminated, even if you become uninsurable later in life. Tax-Deferred Cash Value Accumulation. Your policy is designed to gradually build cash value each year on a tax-deferred basis. During your lifetime, the cash value can be accessed as a policy loan or withdrawal to supplement your retirement income or in times of emergency or a special need. Access ing your cash value will, however, reduce your death benefit. Policy Dividends. Your policy may earn a div idend that can be used in the following ways: Paid-Up Additions: This option allows you to increase insurance coverage by purchasing additional paid-up insurance. Out-of-Pocket Premium Reduction: This option allows you to use any dividend to reduce your out-of-pocket premium. Dividend Accumulation: This option allows you to leave any dividend you earn with Lafayette Life to earn interest. Cash: This option allows you to receive a check in the amount of any declared dividend. Dividends are not guaranteed and may be changed by the company at any time. Policy Loans. If needed, you may take a loan that is secured by the policy s cash value. We will lend you an amount equal to the policy s loan value. The policy loan value will be less than the policy s 3 Subject to the terms of the policy.

4 cash value. Loans will be charged interest payable to The Lafayette Life Insurance Company at an adjustable loan interest rate that may change from year to year. The minimum loan interest rate is 5% and the maximum loan interest rate is determined by a formula using a third-party index as set forth in the policy, and is not capped. Supplemental Riders 4 Automatic Riders 5 Accelerated Benefit Rider (ABR 92) Provides advance payment of a portion of the policy s death benefit if insured is diagnosed with terminal illness and is expected to die within 12 months. Long-Term Care Rider (LTC-WL20) Provides a monthly long-term care benefit if the insured suffers from a chronic illness and is confined in a long-term care facility, receives services from a home health care agency or at an adult day care. Rider benefits are paid by reducing the life policy death benefit. We recommend that you pay accrued loan interest prior to the end of a policy year. Any interest not paid at the end of a policy year is added to the loan balance, which will also be charged interest. Interest that you pay to us is not credited to the cash value of the policy and does not increase the cash value of the policy. A policy dividend, if any, may not be sufficient to pay loan interest. An unpaid loan balance may result in policy termination. Tailored Policy to Meet Your Needs The Patriot 100 is a traditional whole life insurance policy generally available for purchase by anyone who qualifies and is eligible for insurance coverage. However, everyone is different and therefore may have different needs. That s why we have created several supple mental riders that can be added to your policy to help meet those needs. Adding a rider to your policy may require additional premium. Optional Riders 6 Accelerated Death Benefit Plus Rider * (ABPR-05) Provides a monthly or lump-sum benefit if the insured is permanently confined to a nursing facility. Accidental Death Benefit (ADB-05) Pays an additional amount of death benefit in the event of your death resulting from accidental bodily injury. Children s Insurance Rider (CIR-05) Provides term insurance on the children of the insured until either the child s age 24 or the insured s age 65. Convertible. 7 Extended Care Benefit Rider ** (ECB-WL-05) Accelerates benefits if the insured is suffering from a chronic illness and is confined in an extended care facility or receiving home health care or adult day care. Guaranteed Purchase Option (GPO-05) Provides the option of purchasing additional policies of insurance in the same risk class as the original policy without evidence of insurability. Level Premium Paid-Up Additions Rider (LPUA-13) Allows for the payment of additional premium to purchase additional life insurance protection, after an expense charge is deducted from each premium. The rider premium is subject to an annual minimum and annual maximum. Rider is not needed to take a policy loan. Payor Death or Disability Benefit Rider (PIR-05) or Payor Death Benefit Rider (PDR-05) Waives the policy premium if the premium payor of a juvenile policy dies or becomes disabled. Single Premium Paid-Up Additions Rider (SPUA-05) Allows for the payment of a single sum of money (premium) to purchase additional life insurance protection, after an expense charge is deducted. Rider is not needed to take a policy loan. Spouse Insurance Rider (SIR-05) Provides term insurance on the insured s spouse. Convertible. 7 Term Insurance Rider (TR-05) Provides for one year of guaranteed renewable term insurance coverage on the insured. Convertible. 7 Term Riders (TLR-08-10, TLR &TLR-08-30) Provides guaranteed level premium for 10, 20 or 30 years of term coverage on the insured. Convertible. 7 Non-renewable. Waiver of Premium Benefit Rider (WP-05) Prior to age 60 if the insured becomes totally disabled while the policy is in force we will waive the payment of premiums for the policy while the Insured is totally disabled. Getting Started Discuss with your financial professional whether Patriot 100 Whole Life Insurance is appropriate for you and your financial goals. Consider your age, financial situation, and insurance and income needs. For more information or to speak with a whole life insurance representative at Lafayette Life, call tollfree at , extension 3700, or logon to 4 All riders can be added to the policy after issue, subject to availability, additional application and underwriting. Approval, availability and features may vary by state. 5 Automatically added for face amounts of at least $25,000 unless requested otherwise. No application or additional premium is required. 6 Riders are not automatically added to policies. Additional premium is required, and a separate application may be needed. 7 Convertible refers to the right to change (convert) insurance coverage under the rider to coverage under a permanent life insurance policy, subject to certain conditions and limitations described in the rider. * Available in KS, MN, UT and VT only. ** Available in TX only Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, or any other federal entity, have no bank guarantee, and may lose value. Life insurance products are issued and guaranteed by The Lafayette Life Insurance Company, Cincinnati, Ohio. Guarantees are based on the claims-paying ability of the company. The Lafayette Life Insurance Company operates in D.C. and all states except AK and NY, and is a member of Western & Southern Financial Group. Product and rider approval, availability and features may vary by state. Patriot 100 Whole Life Insurance WL The Lafayette Life Insurance Company and its agents do not offer legal or tax advice. The information contained herein is general in nature and for informational purposes only. Always consult an attorney or tax advisor regarding your specific legal or tax situation.

5 The Lafayette Life Insurance Company With more than one hundred years of service to policyholders, The Lafayette Life Insurance Company has proven itself as a leader in providing individual life insurance, annuities, and retirement and pension products and services. Lafayette Life is a member of Western & Southern Financial Group, a family of financial services companies whose heritage dates back to 1888 with assets owned and managed in excess of $60 billion as of March 31, With the strength of our organization and our ongoing commitment to servicing you, your business and your family, The Lafayette Life Insurance Company is a company you can depend on. Find out more about our financial strength and distinguished history at The Lafayette Life Insurance Company 400 Broadway Cincinnati, Ohio