Your Custom Proposal Prepared for: Female Client, Age 40 Prepared On: March 15, 2016 Prepared by: Sample Agent Stonewood Financial (502) 588-7155 www.stonewoodfinancial.com
Your Strategy Female Client, Age 40 Insurance Provider North American Company for Life and Health Insurance Product Illustrated Builder IUL Death Benefit $341,555 Annual Premium $10,000 Additional First Year Premium $0 Premium Duration (contribution years) 25 Potential tax-free income begins at age 65 Index S&P 500 Index 1-Year Point-to-Point Underwriting Class Super Preferred Non-Tobacco
Illustration Highlights * Non-Guaranteed Assumed Interest Rate 1 of 7.28% Initial Death Benefit Annual Premium Total Premium Paid $341,555 $10,000 $250,000 Total Account Value 2 Age 65 Spacer Annual Potential Tax-Free Income 3 Spacer Average Annual Net Return (death benefit paid age 90) $657,239 $66,126 8.24% * Excerpt from prepared illustration. Values are not guaranteed and are based solely on the assumptions and projections made in the illustration. Actual values may be higher or lower than illustrated and are likely to vary with market fluctuations. This information is hypothetical and not intended to project or predict investment results. 1 The non-guaranteed assumed interest rate is the average return of the S&P 500 1-Year Annual Point-to-Point Index, before cost and expense charges, over consecutive 25-year periods starting in 1950. This illustration assumes that non-guaranteed values shown continue in all years. This is not likely, and actual results may be more or less favorable than illustrated. This is an average based on past performance and is not intended to predict future performance. 2 Values shown are net of all mortality and expense charges. 3 As policy loans. Please see your illustration for complete details on policy loan types, features and limitations.
Cumulative Cash Flow Summary 1 1 This supplemental report assumes the nonguaranteed values shown continue in all years. This is not likely, and actual results may be more or less favorable. The information presented is hypothetical and not intended to project or predict investment results. This report is not valid unless accompanied by a complete illustration from the insurance carrier. 2 Assumes death benefit paid at age 90. Total Premium Paid: $250,000 Total Withdrawals: $2,170,184 (including death benefit 2 )
Disclosures These disclosures apply to this presentation in its entirety. This report reflects the potential difference in income that can be derived from financial options with varying tax treatments. The primary purpose of life insurance is to provide a death benefit, and is just one component of a client s overall financial strategy. While the primary purpose of life insurance is the death benefit, indexed universal life insurance policies also offer the potential for cash value accumulation, and loans may be taken against the available cash value for any purpose, including to help supplement retirement income. Pursuant to IRS Circular 230, and per the license limitations of the licensed professional presenting this material, this proposal is not intended to offer or provide, and no statement contained herein shall constitute tax or legal advice. See qualified professionals in these areas before making any decisions about your individual situation. Your financial professional is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Indexed Universal Life products are not an investment in the market or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance. It is important to note that taking loans will reduce any available cash value and death benefit amounts. It is also important to note that policy charges will continue to be deducted to cover the full death benefit of the policy. Permanent life insurance requires monthly deductions to pay the policy s charges and expenses, some of which will increase as the insurer gets older. These deductions may reduce the cash value of the policy. Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. Therefore, the planned periodic premium may not be sufficient to carry the contract to maturity. The index Accounts are subject to caps and participation rates. In no case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional details. The policy s death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured s death. For cost and complete details, call or write North American Company for Life and Health Insurance, Administrative Office, Sioux Falls, SD 57193. Telephone: (800) 888-3656. Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract (MEC), as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a MEC is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59 1?2, with certain exceptions. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year. This supplemental report is not complete without all pages and is not valid unless accompanied by a complete illustration from the insurance carrier. Illustration Disclosures: All projections in this presentation are based on the data provided and rely on the validity of that data. This report is neither a contract nor part of your policy, but is designed to show you the potential advantages of life insurance in your overall financial strategy. Individuals should consider their time horizon, risk tolerance, and current and anticipated income tax brackets when making a final decision. The values illustrated in this presentation are based on historic and/or current market rates and are not a guarantee of future results. Your personal results will vary as market conditions change. Builder IUL, form number LS172, is issued by North American Company for Life and Health Insurance, Administrative Office, Sioux Falls, SD 57193. Products, features, riders, endorsements or issue ages may not be available in all jurisdictions. Limitations and restrictions may apply. This entire document, excluding insurance company-produced illustrations, is 2015 Stonewood Financial Tools.
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