, Rock Island, IL 61201-8645 www.royalneighbors.org A Life Insurance Certificate Quote Royal Legacy Life A Single Premium Whole Life Certificate Certificate Form Series 1313 Designed for CA Presented by FSD INSURANCE SERVICES C/O JEFFREY ROBERT AFFRONTI 5530 CORBIN AVE STE 101 TARZANA, California 91356 USA 8003739697 Date Prepared February 23, 2015 THIS IS AN ILLUSTRATION ONLY. AN ILLUSTRATION IS NOT INTENDED TO PREDICT ACTUAL PERFORMANCE. INTEREST RATES, DIVIDENDS, OR VALUES THAT ARE SET FORTH IN THE ILLUSTRATION ARE NOT GUARANTEED, EXCEPT FOR THOSE ITEMS CLEARLY LABELED AS GUARANTEED. This is page 1 of 6 pages
Permanent Whole Life Insurance Initial Death Benefit: Contract Single Premium: $49,999.95 Royal Neighbors of America Class: Standard The single premium permanent whole life insurance certificate you are considering offers permanent protection with guaranteed cash values and death benefits. This certificate matures at age 121. The single premium required for the insurance coverage will depend on the outcome of the underwriting process, and may vary from what is shown on this quote. If so, you will receive a revised quote with your insurance contract. The initial death benefit is. The actual amount payable at death may be decreased by any debt or lien on the certificate. Provided the single premium is paid on the issue date, the death benefit is guaranteed. This quote shows any changes to the contract premium due to riders or other benefits. The amount available to the certificate owner upon surrender of the certificate. As a single premium life insurance certificate, if the owner surrenders the certificate for the cash value, such surrender may result in a substantial penalty because the cash value of the certificate may be less than the premium paid. Dividends Royal Neighbors of America does not expect that any dividends will be declared on this certificate. Dividends are not guaranteed and are not included in this quote. Loan Interest Loans will bear interest at the rate of 8.00% per annum. Interest is payable at the end of each Certificate Year. Interest not paid shall be added to the loan. The existing debt at any time shall include accrued interest. Loans The owner may obtain a loan on the certificate while it is inforce. The loan may not exceed the loan value but may be any lesser amount, but not less than $500. If the existing debt equals or exceeds the loan value, the certificate will terminate and become void 31 days after notice has been mailed to the owner or assignee of record, if any. This is page 2 of 6 pages
Certificate Quote Summary No dividends Permanent Life Certificate Summary Contract Annual Premium. Summary Year Years to Pay Out of Pocket 1 Year 5 Year 10 Year 20 Age 70 $46,660 $54,054 $69,883 $54,054 All Years - Total Premiums This is page 3 of 6 pages
Life Insurance Certificate Quote A single premium is paid at issue. Values and benefits are as of the end of the year. End of Year Age Contract Premium Death Benefit 1 61 $41,208 2 62 $0 $42,530 3 63 $0 $43,879 4 64 $0 $45,256 5 65 $0 $46,660 6 66 $0 $48,091 7 67 $0 $49,548 8 68 $0 $51,028 9 69 $0 $52,531 10 70 $0 $54,054 11 71 $0 $55,597 12 72 $0 $57,152 13 73 $0 $58,720 14 74 $0 $60,298 15 75 $0 $61,884 16 76 $0 $63,478 17 77 $0 $65,075 18 78 $0 $66,676 19 79 $0 $68,279 20 80 $0 $69,883 21 81 $0 $71,468 22 82 $0 $73,013 23 83 $0 $74,519 24 84 $0 $75,992 25 85 $0 $77,427 26 86 $0 $78,834 27 87 $0 $80,198 28 88 $0 $81,484 29 89 $0 $82,693 30 90 $0 $83,842 This is page 4 of 6 pages
Life Insurance Certificate Quote A single premium is paid at issue. Values and benefits are as of the end of the year. End of Year Age Contract Premium Death Benefit 31 91 $0 $85,013 32 92 $0 $86,239 33 93 $0 $87,449 34 94 $0 $88,582 35 95 $0 $89,581 36 96 $0 $90,420 37 97 $0 $91,101 38 98 $0 $91,750 39 99 $0 $92,502 40 100 $0 $93,266 41 101 $0 $94,002 42 102 $0 $94,710 43 103 $0 $95,383 44 104 $0 $96,019 45 105 $0 $96,606 46 106 $0 $97,143 47 107 $0 $97,634 48 108 $0 $98,084 49 109 $0 $98,497 50 110 $0 $98,870 51 111 $0 $99,202 52 112 $0 $99,502 53 113 $0 $99,795 54 114 $0 $100,105 55 115 $0 $100,379 56 116 $0 $100,640 57 117 $0 $100,889 58 118 $0 $101,107 59 119 $0 $101,319 60 120 $0 $101,586 This is page 5 of 6 pages
Life Insurance Certificate Quote A single premium is paid at issue. Values and benefits are as of the end of the year. End of Year Age Contract Premium Death Benefit 61 121 $0 Taxation of Life Insurance Section 7702A of the Internal Revenue Code places a limitation on the amount and timing of premium payments for a life insurance contract. If this limit is exceeded, the contract becomes a Modified Endowment Contract (MEC). Death benefits under a MEC are income tax free to the beneficiary. Any other value received from a MEC is referred to as a distribution and may result in an income tax liability. Distributions include cash withdrawals, cash surrender of the contract, loans, and assignment of the contract to another person or institution. Distributions are first considered to be any gain under the contract and the gain is taxable in the year it is received. In addition, a taxable distribution is subject to a 10% tax penalty if the taxpayer has not attained age 59 ½, subject to certain exceptions contained in the tax code. Also, distributions received in the two year period prior to the date the contract becomes a MEC may be taxable. Distributions that exceed the gain under the contract are not taxable. Tax laws are subject to change. This is page 6 of 6 pages