An Overview Guide for Consumers Preserve what you spent a lifetime creating A look at MassMutual Survivorship Whole Life insurance Insurance Strategies
Contents 1 Life insurance that works as hard as you do 2 Preserve what you ve built 3 Combining guarantees with flexibility 4 Protection for what matters 5 MassMutual. We ll help you get there.
Life insurance that works as hard as you do For many, leaving a legacy and taking care of those who matter most to them is an important objective. After all, it s how you will be remembered. Whether it s transitioning your family business to the next generation, ensuring that a loved one with special needs is appropriately cared for, or leaving a legacy to your family or favorite charity, your situation demands special attention. Survivorship Whole Life insurance from MassMutual is an effective tool that can help you to achieve your wealth transfer goals. It insures two lives under a single permanent life insurance policy with just one premium. Survivorship insurance pays the death benefit to your beneficiary after both insureds have died and typically costs less than two individual policies. It provides liquidity for your estate, protects your assets and helps you plan your legacy to your family. 1
Preserve what you ve built Under current tax laws, estate assets can pass from one spouse to the other free of estate and gift taxes. While this ensures protection for your spouse, it may place a more significant tax burden on your heirs. The future of your business could be adversely affected and your family may ultimately receive less than you expected. Survivorship Whole Life can be an effective planning vehicle to ensure that your family has the liquidity needed to help preserve what took you a lifetime to build. If you have developed a significant amount of wealth and want to factor life insurance into your overall estate plan, Survivorship Whole Life may be a solution. That s because life insurance proceeds are generally paid income tax-free. In addition, the policy ownership may be arranged so that the death benefit payment is excluded from your and your spouse s taxable estate. Without an effective estate plan, taxes could seriously erode any wealth that you wish to pass on to your heirs. Survivorship Whole Life insurance can provide liquidity to protect your family and business. Your MassMutual financial representative, working together with your tax and legal advisors, can advise you on how to best use Survivorship Whole Life insurance to help preserve your assets for your family. 2
Combining guarantees with flexibility As with other whole life products, MassMutual Survivorship Whole Life provides a guaranteed death benefit to your heirs. Your policy also builds cash value that grows tax deferred and is eligible to receive policy dividends. 1 These guarantees and cash values can give your planning a level of security and flexibility that may not be available with other survivorship policies. And like traditional individual whole life insurance, you can access your cash value for any of life s expected or unexpected opportunities and challenges. 2 With MassMutual Survivorship Whole Life you can count on: A guaranteed death benefit paid to your heirs upon the death of both insureds Guaranteed cash value growth Guaranteed premiums that won t increase regardless of health or age Eligibility for dividends 1 Protecting your special needs If you are the parent or caregiver of a child with a disability or other special need, you know all too well the worries about who will care for that child in the event you die first. Upon death, the proceeds of your Survivorship Whole Life policy can be put into a special needs trust to provide for your child s care and financial security without disqualifying them from eligibility for federal benefits. 3 1 Dividends are not guaranteed. 2 Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders will reduce the policy s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. 3 The information provided is not written or intended as specific tax or legal advice. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. 3
Protection for what matters Survivorship Whole Life may be a sound life insurance solution to address your unique needs. Here s a closer look at how Survivorship Whole Life may fit your life. Features of MassMutual Survivorship Whole Life You need: Effective and efficient estate planning Protection for your business Financial security for a child with a disability or other special need Flexibility Guarantees How Survivorship Whole Life can help you get there: A good estate plan can help ensure your wealth transfer goals are clearly identified. Survivorship Whole Life insurance can help you achieve your goals by providing your heirs with liquid assets after the second death to assist with any estate taxes or transfer costs that are due. A Survivorship Whole Life policy can help provide the liquidity needed to protect your business from estate taxes and transfer costs. These expenses could otherwise cause the forced liquidation of your business and threaten job and financial security for your family and employees. Survivorship Whole Life can help provide the necessary funds to help ensure your special needs child receives the support, care and financial resources needed, even after you and your spouse are gone. With proper planning, Survivorship Whole Life makes funds available without sacrificing the child s eligibility for federal benefits. 3 Like any whole life policy, your Survivorship Whole Life policy is eligible to receive dividends. Although dividends are not guaranteed, they can enhance your policy s death benefit and cash value growth and provide an added measure of flexibility not available in many other survivorship life insurance products. Survivorship Whole Life gives you the security and confidence that comes with the guarantees that the policy provides. 4
MassMutual. We ll help you get there. For over 160 years, MassMutual and its affiliated financial professionals have helped guide our policyowners toward greater security and financial freedom. Our commitment is to help you focus on what you value most, clarify what you want to achieve in life, and understand how life s uncertainties could impact your plans and aspirations. We then help you implement flexible financial strategies designed to make your goals reality. After all, it s not about where life takes you it s about where you take life. Built on a foundation of integrity, strength, and reliability, MassMutual can help you get there. For more information on MassMutual s suite of whole life insurance products, contact your MassMutual Financial Professional. 5
MassMutual. We ll help you get there. There are many reasons to choose a life insurance company to help meet your financial needs: protection for your family or business, products to provide supplemental income and the confidence of knowing you will be prepared for the future. At Massachusetts Mutual Life Insurance Company (MassMutual), we operate for the benefit of our participating policyowners. We stand strong in the fundamental belief that every secure future begins with a good decision. And when choosing a life insurance company ownership, strength and stability matter. Learn more at www.massmutual.com/mutuality Survivorship Whole Life Insurance (SWL) (Policy Form SWL-2007, ICC07SWL and ICC07SWLX in North Carolina) is a level-premium, second-to-die, participating, permanent life insurance policy issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. LI2824 814 CRN201809-185126