How cash value can be used For life’s opportunities and challenges You can access the net cash surrender value of your policy via low- or zero-interest loans and withdrawals. This can help provide financial resilience for major planned and unplanned costs like: ● Family emergencies
● Mortgage paydowns ● Starting a business ● Vacation or income property
● Student loans ● College tuition
Loans are generally tax-free 1 and available fast, with no lender or credit checks. Withdrawals are also generally tax-free 1 up to what’s known as your basis—the total of premiums paid, minus any outstanding loans and prior withdrawals. However, loans and withdrawals will reduce your death benefit and impact cash value growth. Excessive and unpaid loans can create a taxable event.
Loan options Only one loan type is available at any time. Standard loans
Variable loans Potential to continue earning index credits on loaned account values. ● Available beginning in policy year 3+ ● Loan interest rate is determined quarterly but will never exceed 6%. ● Loaned account values in index selections continue to
Fixed participating loans Loan bonus, plus potential to continue earning index credits on loaned account values. ● Available beginning in policy year 11+ ● [8%] max loan rate ● Loaned account values in index selections continue to
Certainty of interest rate with net zero cost loans available. ● In policy years 1–5, the interest rate is guaranteed not to exceed 6%. Net zero cost loans are available starting in policy year 6. ● Loans are processed from the fixed account. ● Any amount transferred from an index selection to the fixed account for a loan will not receive index credit if the transfer occurs before the end of the index period.
earn interest. Potentially, the index interest credited can exceed the loan interest rate, but it can also be lower.
earn interest. Potentially, the index interest credited can exceed the loan interest rate, but it can also be lower.
● Includes a [1.50%] loan bonus (current rate). 2
As a retirement income stream Use policy loans and withdrawals to create additional income when you retire. Distributions are generally income tax-free 1 . During times of market volatility, these distributions can serve as an alternative potential income source, helping ease the pressure on your market-facing accounts.
1 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 59½, with certain exceptions. 2 Guaranteed loan bonus rate: 0.50% in all policy years.
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