Whole life insurance offers a combination of permanent life insurance protection, cash value accumulation, guarantees and income tax advantages. A whole life insurance policy can be a versatile financial asset that may help you address a variety of financial needs during various stages of your life.
Key Features of Whole Life Insurance
- Guaranteed death benefit
- Guaranteed premiums
- Guaranteed cash value that accumulates on tax-deferred basis
- “Living Benefits” – utilize the cash value of the policy for a number of financial needs*
- Optional disability Waiver of Premium Rider is available for an additional cost
* Distributions under your policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (your cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
The information provided is not written as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.