An Overview Guide for Consumers Preserve what you spent a lifetime creating A look at Survivorship Whole Life insurance insure Insurance invest Strategies retire
3 Life insurance that works as hard as you do 4 Preserve what you ve built 5 Combining guarantees with flexibility 5 Protecting your special needs 6 Protection for what matters.
Life insurance that works as hard as you do For many, leaving a legacy and taking care of those who matter most is an important objective. After all, it s how you will be remembered. Whether it s leaving an inheritance to your heirs, transitioning your family business to the next generation, ensuring that a loved one with a disability or other special need is appropriately cared for, or making a financial contribution to your favorite charity, your situation demands special attention. Survivorship Whole Life insurance from MassMutual is an effective tool for helping to ensure that your dreams are realized, your goals achieved and your needs fulfilled. It insures two lives under one permanent life insurance policy with just one premium. Survivorship insurance pays a death benefit to your beneficiary after both insureds have died and typically costs less than two individual policies. It provides needed liquidity for your estate, protects your assets and helps you plan for how you will be remembered. 3
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 can place a significant tax burden on your heirs. The future of your business could be adversely affected, your family finances left to risk. Survivorship Whole Life can be an effective planning vehicle to ensure that your family has the liquidity needed to keep your legacy alive. 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 loved ones. 4
Combining guarantees with flexibility Like other whole life products, Survivorship Whole Life provides your heirs with a guaranteed death benefit and eligibility to receive dividends and build cash value tax-deferred. 1 These guarantees and cash values can give your planning a level of security and flexibility that may not be found in 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 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, and how you will pay for that care, in the event you die first. Upon death, proceeds from a Survivorship Whole Life policy can be put into a special needs trust to make funds available 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 your policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (your 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 can 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 tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. 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. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. 5
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. You want How Survivorship Whole Life can help you get there: Effective and efficient estate planning Protection for your family and business Financial security for a child with a disability or other special need Flexibility Guarantees A good plan can help ensure your estate planning 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 will 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 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. Though not guaranteed, these dividends can enhance your death benefits and cash value growth and provide an added measure of flexibility not available in many other survivorship life insurance products. Like all whole life policies, Survivorship Whole Life gives you the security and peace of mind that comes from a guaranteed death benefit, guaranteed cash value growth and guaranteed premiums. 6
MassMutual. We ll help you get there. SM For over 150 years, MassMutual and its affiliated financial professionals have helped guide our policyholders toward greater security and financial freedom. One measure of a company s value to its customers is its financial strength. MassMutual s exceptional financial strength is underscored by ratings that are among the best in any industry: A.M. Best Company: A++ (Superior) Moody s Investors Service Inc.: Aa1 (Excellent) Standard & Poor s Corp.: AAA (Extremely Strong) Fitch Ratings: AAA (Exceptionally Strong) Ratings are as of October 1, 2008 and are subject to change. Ratings are for Massachusetts Mutual Life Insurance Company, C.M. Life Insurance Company and MML Bay State Life Insurance Company. 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 that can help provide peace of mind for today and tomorrow. 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. 7
Survivorship Whole Life Insurance (SWL-2007 and SWL-NC-2007 in North Carolina) is a level-premium, participating, permanent life insurance policy issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. 2008 Massachusetts Mutual Life Insurance Company, Springfield, MA. 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 1008 CRN201011-112135