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Table of Contents
  1. Introduction
  2. Target Prospects
  3. Key Benefits and Features
  4. Case Study
  5. Apex VUL Marketing Resources
Apex Variable Universal Life (Apex VUL®)
FOR REGISTERED REPRESENTATIVE USE ONLY. NOT FOR USE WITH THE PUBLIC.
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The information provided is not written or intended as specific tax or legal advice. MassMutual, its subsidiaries, 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. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

Table of Contents

Introduction

Apex VUL is a flexible premium variable universal life (VUL) insurance policy that provides a combination of features, benefits, and tax advantages for your clients.

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Flexible Premiums to help clients adjust payments based on their current needs and circumstances.
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Choice of Death Benefit protection for loved ones and beneficiaries.
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50+ Investment Options1 to help accumulate assets on a tax-deferred basis.
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The combination of features and benefits, including income tax advantages, helps provide for an attractive supplemental retirement option.
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Riders that can provide additional protection and peace of mind.
  • 1 Investment options refers to the investment divisions of the Separate Account. The values in the Separate Account are not guaranteed. Allocating premium to investment options in a variable life insurance policy may provide account value accumulation and growth, but the value may also decline. The value of the policy may not be high enough to pay the required charges, resulting in the need for additional premium to keep the policy in force.

Target Prospects

target prospects
  • Have a need for permanent life insurance.
  • Equities and bonds meet their investment objectives and risk tolerance.
  • Are long-term focused.
  • Attracted to tax advantages.
  • Potential need for chronic care and/or disability protection.

Other Prospecting Opportunities

  • Juveniles — Grandparents and parents can provide a Gift of a Lifetime for their children or grandchildren.
  • Executive Bonus for business owners.
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Key Benefits and Features

Nine low-cost index investment options

  • Management fee ranges from 0.14% to 0.27%.
  • Clients can choose from a variety of asset classes.

Accelerated Death Benefit for Chronic Illness2

  • Payments are generally income tax-free.
  • No elimination or waiting period and no monthly charge.

Wash Loans3

  • Beginning in policy year 11, the interest on policy loans is equal to the interest credited on the loaned account value.
  • Supports retirement supplement needs of clients.

Overloan Protection4

  • Rider prevents heavily loaned policies from lapsing and triggering a taxable event.
  • Automatically added at policy issue to all policies with the Guideline Premium Test.

Whole Life Conversion

  • Available on policies issued age 62 or younger and allowed after the 2nd policy year, during the first 10 years or to age 65, if earlier.
  • No medical information is required to convert, and surrender charges are waived.

Age 85 Guarantee

  • Provides a no-lapse guarantee up to attained age 85 using the Guaranteed Death Benefit (GDB) Safety Test.
  • Requirements are met when the Guaranteed Death Benefit Measure is appropriately funded by premium payments (net of withdrawals or capitalized loan interest).

Disability Waiver Riders5

  • Three choices to protect against inability to pay premiums or monthly charges due to disability.
  • Includes: Waiver of Monthly Charges, Waiver of Specified Premium, or Disability Benefit Riders.
  • 2 The Death Benefit will be reduced by an amount greater than the amount of the Chronic Illness benefit payment received.
  • 3 Policy loans and/or withdrawals reduce the cash surrender value and policy Death Benefit and may cause the policy to lapse. Taking a policy loan could have adverse tax consequences if the policy terminates before the insured’s death. Policy withdrawals are not subject to taxation up to your cost basis in the policy. If the policy is a Modified Endowment Contract, policy loans and/or withdrawals will be taxable to the extent of gain and are subject to a 10% tax penalty if the policyowner is under age 59½.
  • 4 The Internal Revenue Service (IRS) has not issued guidance on the tax consequences of exercising the Overloan Protection Rider. It is possible that the IRS could assert that the Policy Debt should be treated as a distribution, in whole or in part, when this rider is invoked. Consult with a tax adviser regarding the risks associated with invoking this rider.
  • 5 Only one rider can be elected for an additional charge. Benefits may be limited based on the attained age of the insured at the onset of disability.

Case Study

Jane

Meet Jane

Age: 40

Occupation: VP of Operations, Manufacturing

Annual Income: $150,000 + bonus

401(k) balance and other savings: $500,000 invested in equity, bond, and money market funds.

Concerns: Leaving her children a financial legacy, especially while they are young; having enough income during retirement and protection against disability and/or illness.

Using Apex VUL to Meet Her Needs

  • Annual Premium: $12,000/year for 20 Years.
  • Initial Face Amount: $750,000.
  • DBO2 to DBO1 after year 20.
  • Premium Allocation: Index portfolios; Average index fund expense = 0.17%.
  • Ultra-preferred; non-tobacco.
  • Takes $48,000 of income/year from ages 70-89.

Return Assumptions:

7% gross/6.83% net investment return.

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Policy loans and/or withdrawals reduce the cash surrender value and policy death benefit and may cause the policy to lapse. Taking a policy loan could have adverse tax consequences if the policy terminates before the insured’s death. Policy withdrawals are not subject to taxation up to your cost basis in the policy. If the policy is a Modified Endowment Contract, policy loans and/or withdrawals will be taxable to the extent of gain and are subject to a 10% tax penalty if the policyowner is under age 59½.

Apex VUL Marketing Resources

Consumer

Financial Professional

Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or the safety of amounts held in the variable investments.

Before purchasing a variable life policy investors should carefully consider the investment objectives, risks, charges and expenses of the policy and its underlying investment choices. For this and other information, they must obtain the prospectus for the policy and the prospectuses (or summary prospectuses, if available) for its underlying investment choices to read carefully before investing or sending money. You should also read these prospectuses carefully before recommending a variable life policy. Prospectuses (or summary prospectuses, if available) are available on MassMutual.com.

Apex VUL (MMVUL-2020, and ICC20-MMVUL in certain states, including North Carolina) is non-participating flexible premium adjustable variable life insurance issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001.

Securities offered through registered representatives of MML Investors Services, LLC (MMLIS), Member SIPC® (www.SIPC.org), or a broker-dealer that has a selling agreement with MML Strategic Distributors, LLC (MSD). MMLIS and MSD are subsidiaries of Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001, Members FINRA (www.FINRA.org).

Principal Underwriters:
MML Investors Services, LLC
MML Strategic Distributors, LLC

VARIABLE UNIVERSAL LIFE INSURANCE IS: NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION • NOT FDIC OR NCUA INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY ANY BANK OR CREDIT UNION • MAY GO DOWN IN VALUE
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© 2022 Massachusetts Mutual Life Insurance Company (MassMutual®), Springfield, MA 01111-0001.
All rights reserved. www.MassMutual.com.

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