Guaranteed Legacy Survivor

Guaranteed Legacy Survivorship Universal Life Protects Families or Businesses With a No-Lapse Guarantee Provision

Beneficial’s Guaranteed Legacy Survivorship Universal Life (UL) policy on two people is typically used by a husband and wife or two business partners. It pays a guaranteed death benefit after the death of the second insured. Guaranteed Legacy UL provides you with the flexibility you need to meet family, business, and charitable-giving needs.

The following sections outline Guaranteed Legacy’s outstanding features and benefits and give several examples of how this policy can work for you or your business in particular situations.

Outstanding policy features and Benefits
Guaranteed Legacy provides five outstanding features for you:

1. Guaranteed death benefit and no-lapse guarantee. You can rely on the death benefit of a Guaranteed Legacy policy for a variety of family, business, and charitable purposes, such as survivor needs, college funding, retirement, buy-sell agreements, and executive compensation.
   
   The death benefit is guaranteed, as long as the policyowner pays at least the coverage-guarantee premium on a timely basis, with no cash surrenders. This guarantees that a policy won’t terminate, even under adverse economic conditions.
   


2. Low premiums. The Guaranteed Legacy premium, which is adjustable, is less than it would be for either of the individual insureds seeking first-to-die coverage.
   


3. Tax-free death benefit. Guaranteed Legacy can be an attractive alternative to annuities and other means of cash accumulation because the death benefit is income tax-free to beneficiaries.
   


4. Extended maturity provides added protection and significant tax savings. The insured can’t outlive the policy, because the policy maturity is extended as long as one insured is alive. If the policy is in force at the youngest insured’s age 100, the death benefit will continue until the second death, without any further out-of-pocket premiums.
   
   In the absence of the extended-maturity provision, gain in the policy cash value would be taxable when the younger insured reached age 100. The extended-maturity provision allows you to avoid that unfavorable tax consequence, with death benefits going income tax-free to the beneficiaries.
   


5. Favorable underwriting. Choice Issue can mean an underwriting-class upgrade for some applicants. In many cases, policies that would otherwise be rated for health issues are issued at either Standard Nonsmoking or Standard Smoking rates. Because the policy is based on two lives, some individuals who might otherwise be even more severely rated, or uninsurable, may be eligible for coverage with Guaranteed Legacy.
   


6. Lifetime benefits. You don’t need to die to take advantage of a Guaranteed Legacy policy. Lifetime benefits of this policy include:
   
   
• Competitive interest rates. The policy is interest-sensitive, so the policy’s accumulation value earns competitive interest rates. It is protected by a guaranteed minimum crediting rate.
  
  
• Tax-deferred growth. Cash accumulation grows tax-deferred. Interest on the accumulation value compounds, producing a greater amount of money than if you were taxed every year on the increase.
  
  
• Cash withdrawals. You can withdraw available cash from the policy and can request one cash withdrawal per year, without fees from Beneficial.
  
  
• Regular and preferred loans. You can borrow against your policy at very favorable rates. You have access to gains in the policy at zero net cost, based on annual yields (the gain in a policy is credited at the same effective annual rate as the interest charged on the loan). Loans from non-MEC policies are always taken against gain first, if available, which provides easy access to policy values for short-term needs.
  
  

How Guaranteed Legacy Works for You
Here are several examples of how Beneficial’s survivorship UL can work for you:

• Estate taxes and settlement. Guaranteed Legacy is an excellent, low-cost way to provide money to pay final expenses, estate taxes, and other estate-settlement costs.
  
  
• Estate equalization. Guaranteed Legacy can be a great way to help you buy out a family business so that children who work in the business can acquire the full business interest at the death of the parents, while the other children are treated equitably.
  
  
• Special-needs care. This survivorship policy can provide funds for a child with special needs. The parents provide care as long as they are alive, but at the death of the second parent, funds are available to help siblings or others provide care for the special-needs person.
  
  
• Wealth replacement. Guaranteed Legacy can provide a death benefit to heirs equal to the value of a charitable gift of other assets to a qualified charity. Gifts to charities in qualifying charitable remainder trusts provide tax benefits to clients as donors, as well as offer the opportunity to receive an income from the principla of the trust for a term of years or as long as the insureds live.
  
  Remaining trust assets pass to a charity of choice at the death of both insureds. Because the property gifted to a charity is no longer available to provide an inheritance to heirs, a Guaranteed Legacy policy can provide a death benefit to heirs. Policies for this purpose are often owned by an ILIT (irrevocable life insurance trust) to keep proceeds out of the parents’ taxable estate.
  
  

Policy Riders
The following five riders are included with Legacy Survivor at no additional cost:

• The Accelerated Benefit for Chronic Illness (ABCI) allows the policyowner to receive a discounted advance payment of part or all of the policy death benefit when the insured has a covered chronic illness. There are no restrictions on the use of the funds.
• The Accelerated Benefit for Terminal Illness allows the policyowner to receive up to 80 percent of the face amount of the policy (up to a maximum benefit of $200,000) in the event of a terminal illness, as defined in the policy.
• The Charitable Giving Benefit provides that Beneficial will pay up to 1 percent of the policy amount ($500 minimum and $10,000 maximum) to a qualified charity of the policyowner’s choice in his or her name, without reducing the death benefit payable to the beneficiaries.
  
• The Estate Tax Sunset Endorsement gives policyowners flexibility when it comes to changes in estate tax legislation. If a policy is purchased so that money is available to pay estate taxes (which is why many second-to-die policies are purchased), but the estate tax repeal (EGTRRA-2001) is extended or made permanent, the policyowner may fully surrender the contract and terminate the coverage during 2010 and receive the accumulation value without surrender penalties.
  
• The Policy Split Rider allows two insureds who are married to split the policy into two individual policies in the event of a divorce or a particular change in the federal estate tax law.
  
  

To find out more or get a price quote, click here to find a Beneficial agent near you.

Guaranteed Legacy Survivorship Universal Life form: 5-426-49. Accelerated Benefit for Chronic Illness form: ABCI-04-J or ABCI-04-2-J. Accelerated Benefit for Terminal Illness form: B10J. Charitable Giving Benefit form: E-CHARIT-J. Estate Tax Sunset Endorsement form: E-CHARIT-J. Policy Split Rider form: PSR. Fixed life products are offered by Beneficial Life Insurance Company, 150 Social Hall Ave., P.O. Box 45654, Salt Lake City, Utah 84145-0654, (801) 933-1100. These products are not available in all states. Beneficial Financial Group is a marketing name for Beneficial Life Insurance Company, its affiliated companies, and sales representatives. The policy contains the actual governing contractual provisions. Guarantees are subject to the claims-paying ability of the insurer. Beneficial Financial Group and its respective agents, representatives, and/or advisors, do not offer tax or legal advice. Please consult your attorney, accountant, or tax advisor about specific points of interest to you.