Life Insurance  Protect Your Family’s Future

Disclosures

There may be tax implications for policies recognized as modified endowment contracts (MECs). Distributions, including loans, from a MEC are taxable to the extent of the gain in a policy, and may also be subject to a 10% additional tax if the owner is under age 59½.

Excessive loans or withdrawals may cause the policy to lapse. Loans and withdrawals will reduce the policy’s death benefit and available cash value. For Indexed Universal Life certain charges will not reduce when decreasing the face amount of insurance or after taking withdrawals from the policy. Consult your policy for details. A loan, withdrawal or surrender may be a taxable event. For tax advice, consult with your professional tax advisor.

1. Death benefit proceeds from a life insurance policy are generally not included in the gross income of the taxpayer/beneficiary (Internal Revenue Code Section 101(a)(1)). There are certain exceptions to this general rule including policies that were transferred for valuable consideration (IRC §101 (a)(2)). This information should not be construed as tax or legal advice. Consult with your tax or legal professional for details and guidelines specific to your situation.

2. Once the initial policy term ends, your premiums will increase on an annual basis until age 95. Any increase in premium will not increase the certificate benefits.

3. Universal Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods. This certificate could lose money. WoodmenLife will provide notification if the guaranteed monthly deductions and interests are expected to exhaust the plan’s cash values prior to the maturity date. This certificate is not guaranteed to stay in force until maturity based on minimum guarantees.

4. Accelerated Death Benefit Rider: Forms ICC10 264 6-10, 264 6-10 (XX), O-264 6-10 (XX), ICC10 257 6-10, 257 6-10 (XX), O-257 6-10 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Maximum benefit is the less of $250,000 or 65% of death benefit amount available and is usually paid in one lump sum. Generally, benefits received are income tax-free. Consult your tax professional to assess the impact of this benefit.

5. Chronic and Terminal Illness Accelerated Death Benefit Rider: Forms ICC17 8690 1-17, 8690 1-17, ICC18 8731 4-18, 8731 4-18 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Certain eligibility requirements apply. This rider is not long-term care insurance. Maximum benefit for terminal illness is the lesser of $250,000 or 65% of death benefit amount available and is usually paid in one lump sum. Maximum benefits for chronic illness is the lesser of $250,000 or 50% of the death benefit amount available, subject to the annual per diem limitation declared by the Internal Revenue Service. Payments made under this rider are intended to qualify for favorable tax treatment under the Internal Revenue Code. As with all tax matters, a tax professional should be consulted to assess the impact of this benefit. Not available in CA.

6. These riders are available for an additional fee. All contractual provisions apply and may vary by state. May not be available on all products.
   Accidental Death Benefit Rider: Forms 260-XX-0409, 260-04-1401, 260-08-0803, ICC10 8207 3-10, 8207 3-10 (XX), O-8207 1-14 CA, O-8207 3-10 (XX)
   Disability Waiver of Premium Rider: Forms ICC16 8649 1-16, 8649 1-16 (XX), 262-04-1401
   Waiver of Monthly Deduction Rider: Forms ICC10 8206 3-10, 8206 3-10 (XX), O-8206 3-10 (XX), O-8206 1-14 CA, ICC11 8308 5-11, 8308 5-11 (XX), O-8308 5-11, O-8308 1-14 CA
   Applicant Waiver of Premium Rider: Forms 263-XX-0409, 263-04-1401
   Applicant Waiver of 2x Monthly Deduction Rider: Forms ICC11 8309 5-11, 8309 5-11 (XX), O-8309 5-11
   Guaranteed Insurability Rider: Forms 261-XX-0409, ICC11 8310 5-11, 8310 5-11 (XX), O-8310 5-11

7. A minimum initial face amount of $75,000 is required on Indexed Universal Life insurance certificates for issued ages 0-18 years.

Certificate Forms ICC16 8648 116, 8648 116 XX, ICC17 8678 117, 8678 117 XX, ICC17 8679 117, 8679 117 XX, ICC16 8063 R116, 8063 R116 XX, ICC10 8205 310, 8205 310 XX, O8205 310 XX, ICC18 8730 418, 8730 418 XX. All products may not be available in all states. These certificates have exceptions, limitations and restrictions. For costs and complete details in coverage, contact a WoodmenLife Representative.

Sources

https://www.limra.com/siteassets/newsroom/help-protect-our-families/2022/sept/hpof-misconceptions-flyer-redesign_infographic_final.pdf, 2022