A rare joint-and-survivor product leaves value of estate intact after taxes.HORSHAM, Pa.--(BUSINESS WIRE)--June 16, 1995--As one of the best products in its class, Variable EstateMax -- newly available from Penn Mutual Penn Mutual traces its beginning to 1847 when it became the seventh mutual life insurance company chartered in the United States. At the time of its organization there was a general distrust of stockholder-owned corporations so it was established as a mutual owned by its Life Insurance Co. -- combines the flexibility of variable universal life insurance The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. with the economy of a second-to-die policy. By paying a death benefit only at the death of the surviving insured, it is one of the most cost-effective ways to pay estate settlement costs. With one policy covering two insureds, Variable EstateMax is less costly than two individual policies, and policy proceeds are used to pay federal estate and gift taxes A combined federal tax on transfers by gift or death. When property interests are given away during life or at death, taxes are imposed on the transfer. These taxes, known as estate and gift taxes, apply to the total transfers that an individual may make over a lifetime. -- so the full value of the estate can transfer to heirs intact. And if the policy is owned by an Irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is Life Insurance Trust, proceeds are not included in either descendent's taxable estate Taxable Estate The total value of a deceased person's assets that are subject to taxation - minus liabilities and minus the prescribed tax-deductible portion of assets left behind by the deceased. . Other outstanding Variable EstateMax features There are additional reasons to utilize Variable EstateMax for your clients. Flexible Premiums. There's built-in flexibility to adjust the payment schedule if financial objectives change. Flexible Death Benefits. Insureds can choose a level-or increasing death benefit. Tax-advantaged features. Allows for tax-free transfers and access to policy cash values. Investment options. Policyowners choose from 14 fund options managed by seven independent investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , plus a guaranteed account guaranteed account A brokerage account that has its margin requirements or losses guaranteed by the assets of another account. option. Optional riders and benefits. Certain options allow for creation of a customized program of insurance coverage, and can include: -0-
o Guaranteed Continuation of Policy Rider -- extends life
insurance protection beyond initial, five-year guarantee, and
provides for a minimum death-benefit even if investment
performance is negative.
o Policy Split Option -- allows a single Variable EstateMax
policy to be exchanged for two individual policies, one on
each insured's life.
o Estate Growth Benefit -- an `inflation fighter';
automatically increases the Specified Amount by a fixed
percentage each year.
o Exchange of Insured Option -- allows for replacement of one
of the insureds.
o Flexible Period Single Life Term Rider -- provides additional
term coverage for one or both insureds; can be used to pay
future premiums on policy after the first death.
o Supplemental Term Insurance Rider -- provides joint life term
coverage on top of base policy.-0- Best real-life applications for Variable EstateMax
Families with large taxable estates, professional couples with children, estates with non-liquid assets, dependents with special needs and wealthy couples can all greatly benefit through variable survivorship survivorship n. the right to receive full title or ownership due to having survived another person. Survivorship is particularly applied to persons owning real property or other assets, such as bank accounts or stocks, in "joint tenancy. life insurance for effective preservation of estate wealth. There are appropriate business applications, as well. Situations involving business continuation, financial solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. of a business tied to key employee(s), and provision of employee life insurance coverage are practical business applications for Variable EstateMax. For more information on Variable EstateMax, please call Rick Feinstein, Life Insurance Product Manager at 215/956-8833. CONTACT: Penn Mutual Life Insurance Co., Philadelphia Eva Frantz, 215/956-8760 |
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