Heritage Single-Premium

Beneficial Financial Group’s Heritage Single-Premium Universal Life provides these outstanding benefits and features:

1. Death benefit with no-lapse guarantee.¹ You can rely on the death benefit of your policy for a variety of family, business, and charitable purposes, such as survivor needs, college funding, retirement, buy-sell, and executive compensation. The death benefit of your policy is guaranteed, as long as you take no loans or withdrawals from the policy.
   
   
2. Guaranteed return of premium.¹ You purchase this policy with a single, lump-sum premium to leverage your assets to protect your family. But you have the guaranteed right to get your full premium back at any time, for any reason—such as a family emergency or business opportunity. You aren’t “locked-in.” (Return of premium diminishes or eliminates both the policy cash value and the death benefit.)
   
   
3. Cash withdrawals.² You can withdraw available cash from your policy and can request one cash withdrawal a year at no out-of-pocket fee. Because this policy is considered a modified endowment contract (MEC), withdrawals will come from gain first, basis second. Gain is taxable as ordinary income in the year it is received and may be subject to a 10% penalty by the IRS if the policyowner is under age 59½. (Withdrawals diminish or eliminate both the policy cash value and the death benefit.)
   
   
4. True single-premium. Some “single-premium” policies require you to pay additional out-of-pocket premiums if internal policy values become insufficient to pay the cost of insurance and other expenses. But Heritage guarantees that if you pay the single premium, the policy will never lapse or require additional premiums. Your death benefit is assured, as well as a guaranteed cash value that is at least equal to your initial premium.
   
   
5. Income-tax-free growth and death benefit. If possible, you want to avoid tax on the growth and death benefit of your policy. Unlike other tax-deferred accumulation plans—such as annuities—that incur a tax on any undistributed gain at death, all gain in a Heritage UL policy is paid out as part of the income-tax free death benefit, which maximizes the amount you pass on to your heirs. (You pay taxes only on 1099 income gains in the policy cash value if and when you take money out of the policy.)³
   


6. Extended maturity provides added protection and tax savings. You cannot outlive the policy, because the policy maturity is extended for as long as the insured lives. If the policy is in force at age 100, the death benefit will continue for the rest of your life, without any further out-of-pocket premiums. In the absence of the extended-maturity provision, gain in the policy cash value would be taxable if the accumulation value were paid to the policyowner when the insured reaches age 100. This provision allows you to avoid that unfavorable tax consequence, with death benefits going tax-free to the beneficiaries.
   
   
7. No reduction in Social Security benefits. You don’t want your policy interest earnings to be taxed or to cause your Social Security benefits to be taxable. As long as your Heritage policy cash values are growing on a tax-deferred basis, you will not have reportable income that needs to be included in the calculation of whether or not your government benefits are to be included in taxable income. (Consult your own tax advisors for specific tax advice about your particular situation.)
   
   
8. 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 non-smoking or standard smoking rates.
   
   
9. No-cost accelerated benefits for chronic and terminal illnesses help you meet urgent cash needs. The Accelerated Benefit for Chronic Illness (form ABCI-02-01) provides accelerated payment of a discounted amount of the insurance benefit when the insured has a covered chronic illness. The Accelerated Benefit for Terminal Illness (form B10) allows the policyowner to obtain up to 80 percent of the face amount of the policy to help offset hardship in cases of terminal illness, as defined in the benefit.
   
   
10. Charitable Giving Benefit. At no additional cost, Beneficial Financial Group pays up to 1 percent ($10,000 maximum) of the policy face amount to a qualified charity of your choice, in your name, without reducing the death benefit payable to the beneficiaries (form E-CHARIT).
    
    
    

Heritage Single-Premium Universal Life form: 5-130-54. 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.

¹Guarantees are subject to the claims-paying ability of the insurer. ²Policy loans will reduce net cash value and death benefit. Policy loans are subject to interest charges. If the policy is a modified endowment contract (MEC), loans and withdrawals may be subject to taxes and penalties. A modified endowment contract (MEC) is a life insurance policy that has a higher ratio of cash value to death benefit than is in a typical life insurance policy. As a result, unlike with non-MEC policies, policy loans and surrenders of cash value are generally taxable as income. Additionally, distributions prior to age 59½ are subject to a 10% surcharge tax on any gains. Death benefits, however, are received by beneficiaries income tax-free, the same as non-MEC policies. ³Beneficial 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. TC#5769(0708)