LIBERTY LEGACY is a Single Premium Whole Life insurance policy with a guaranteed death benefit and guaranteed cash values. It is designed especially for use in the senior market for those desiring guaranteed values.
The death benefit is immediately greater than the premium paid, creating a larger benefit for beneficiaries. Focusing on the benefits of life insurance to avoid the costly impact of taxes on the growth and transfer of assets, it is ideal for those seeking to pass on a portion of their wealth to their loved ones in a tax efficient manner while retaining control over the policy cash value in case it is needed.
The initial death benefit is guaranteed for the life of the contract, provided there have been no policy loans, accelerated death benefit payments or the policy has not been surrendered. After the initial premium, no additional premiums are due or may be added to the policy, and the policy matures at the insured’s attained age of 121.
The policy is a Modified Endowment Contract (MEC). Under current tax law, borrowing or withdrawing funds from a MEC results in a taxable distribution to the extent of any earnings or gain which becomes taxable as income. A 10% penalty may apply to any amounts included as taxable income unless the owner has attained the age of 59½ or meets another exception described in the Internal Revenue Code.
Liberty Legacy death benefits and cash values are not subject to interest rate fluctuations, cost of insurance increases or variable investment risks. Cash value loans against the policy are available if needed. In the event of a Terminal or Chronic Illness, up to 80% of the Death Benefit (subject to a maximum of $250,000) may be accessed to help with those costly related expenses.
Compared to alternative investments, it may take years, if ever, to achieve the after-tax death benefit value created by Liberty Legacy.
Issue ages: Ages 50 - 80, based on the insured’s age on their last birthday.
Minimum Premium at all issue ages: $20,000
Maximum Premium: Varies by issue age and underwriting classification. The maximum premium issued without prior special approval is shown in the chart on page 5. Note that the upper premium limit for many classifications is $500,000, but it is considerably lower for other classifications due to the substantially larger death benefit relative to the single premium. The Liberty Legacy policy is designed to feature simplified, point-of sale underwriting and therefore must limit large risks due to the relatively brief amount of health information available for underwriting.
LIBERTY LEGACY can help to avoid the costly impact of taxes on the growth and transfer of assets.
Consider its use as a tool to:
Liberty Bankers Life Insurance Company/Capitol Life Insurance Company and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here was written to support the sales, marketing or service of insurance policies offered by Liberty Bankers Life Insurance Company/Capitol Life Insurance Company. Based upon individuals’ personal circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors. No one may rely upon or use the information here for the purpose of avoiding any tax or tax penalty that may be imposed by the internal Revenue Code or other applicable law. Please refer to the policy form and specific riders for detailed policy language.
