Guaranteed To Fit Your Life
An Overview Guide
Guaranteed to Fit Your Life
The value of whole life insurance
throughout your lifetime
1 | Whole Life Insurance Basics
2 | Insurance That Fits Your Life, Today
8 | A Portfolio of Solutions
People buy life insurance to provide financial security for their
family during their working years. However, they may not
consider how their life insurance could help them address
other financial concerns such as planning for retirement or
providing a legacy for their family. A Massachusetts Mutual
Life Insurance Company (MassMutual) Whole Life Legacy
insurance policy can be a versatile financial asset that may
help you address a variety of financial needs throughout
The information provided here is not intended or written as specific tax advice and may not be relied on for purposes of avoiding any
federal tax penalties. You are encouraged to seek advice from a qualified tax advisor.
The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is
not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know
that there may be little to no cash value available for loans in the policy’s early years.
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 Whole Life Insurance Basics
Whole life insurance offers a combination of life insurance protection, cash value accumulation,
guarantees and income tax advantages. The following summarizes the important features and benefits
that MassMutual whole life insurance offers.
Protection for Life
Although dividends are not guaranteed, MassMutual has
MassMutual whole life insurance provides permanent life
paid them consistently since the 1860s.
insurance coverage to help you meet both your immediate
and long-term protection needs.
In addition to providing life insurance protection, your whole
life policy builds cash value over time.
MassMutual whole life offers three important guarantees:
• Guaranteed level annual premiums and premium
You may use your dividends in a number of different ways.
Some of the most frequently selected dividend options include:
• Paid in cash
• Applied to reduce the following year’s premium
• Purchase additional paid-up whole life insurance
The majority of MassMutual policyowners use their
dividend to purchase paid-up whole life insurance (also
called paid-up additions), which increase both the policy’s
death benefit and cash value.
• Guaranteed level death benefit
Income Tax Advantages
• Guaranteed cash values
Whole life insurance offers valuable income tax advantages
Guarantees are an important part of the financial security
and dependability that MassMutual whole life insurance
provides to policyowners.
Policy Dividends Provide Additional Value
As a mutual life insurance company, MassMutual
operates for the benefit of its participating policyowners.
• An income tax-free death benefit – The policy’s
death proceeds are generally received income tax
free by the beneficiary.
• Tax-deferred cash value growth – The policy’s cash
value accumulates on a tax-deferred basis.
• Tax-advantaged distributions – Policyowners may
MassMutual’s whole life policies are participating,
be able to access their cash value on a tax-advantaged
which means that they are eligible to receive dividends.
basis through partial surrenders and policy loans.1
Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost
basis). If the policy is a Modified Endowment Contract (MEC), policy loans and/or distributions are taxable to the extent of gain and are subject to a 10%
Access to cash values through borrowing or partial surrenders will 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.
Insurance That Fits Your Life, Today and Tomorrow
Protecting your value as a provider: Protecting the value of what you
Consider some of the ways
that a MassMutual whole
life insurance policy can
help you address your
financial needs during
different times of your life.
provide for your family is an important responsibility. Your policy can
help meet your life insurance protection needs today, and as they change
over time. (Page 3)
Building a financial safety net: Financial experts often advise people to
keep six to eight months of normal living expenses in cash reserves in case
of disability, job loss or other financial emergency. The cash value that your
policy builds over time may be an additional source of cash when you need
it most. (Page 4)
Supplemental retirement income: Many individuals realize that traditional
sources of retirement income, such as Social Security and employerprovided retirement plans, may not provide enough income to live a
comfortable retirement. Your policy can be an effective way to accumulate
additional funds for retirement. (Page 5)
Live a more secure and comfortable retirement: Individuals often assume
that their need for life insurance protection ends when they retire. In fact, a
paid-up whole life insurance policy can be a valuable financial asset to help
you enjoy a more secure and comfortable retirement, and leave more to the
people you care about. (Page 6)
Ensuring a legacy for the future: Your policy offers a flexible and efficient
way to provide a financial legacy for the next generation or meet your
charitable goals. (Page 7)
Protecting Your Value as a Provider
Your family depends on what you provide for them. This includes the income you earn as well as the
value of any benefits you provide.
Life insurance is one of the most effective ways to protect your loved ones
against the financial loss that could occur after your death. That is why it is
important to have both the right amount and the right type of life insurance
coverage to meet your needs.
A MassMutual Whole Life Legacy insurance policy can be a good
foundation for your life insurance protection strategy. It provides
permanent life insurance with guaranteed premiums and can help
meet your life insurance needs as they change over time.
Many people are unsure how much life insurance they need to protect their
loved ones. Your financial professional can help you estimate the value you
will provide for your family between now and when you retire. It may be
more than you think.
The following chart illustrates how much would be needed in today’s
dollars to replace future earnings. It shows the estimated present value of
future after-tax earnings at various ages.
Estimated Present Value of Future After-Tax Earnings*
Annual after-tax earnings
* Present value of future after-tax earnings to age 65, assuming 3% annual growth in
earnings each year and a 6% annual discount rate.
Building Your Financial Safety Net
Financial experts often recommend keeping six to eight months of normal living expenses as a safety
net for emergencies such as disability, illness or job loss. There may be times when it is challenging to
maintain this level of cash reserves and meet your other long-term financial goals, like saving
The cash value of your whole life policy can help provide cash for
In 1929, J.C. Penney borrowed from
his life insurance policy to help meet
his company’s payroll.
emergencies. If your policy has accumulated paid-up additions, they
Walt Disney borrowed from his life
insurance policy in 1953 to help fund
his first theme park.
policy should not be your only source of cash for emergencies, but it may
Source: LifeHealthPro, 6 Famous Brands
Started or Saved by Life Insurance, 2012.
major expenses such as college tuition or the cost of a wedding. Your
can be surrendered for their cash value at any time. In addition, you can
borrow against your policy’s cash value for any reason.1 Your whole life
be a valuable resource in times of need.
There may be times when you need additional cash or credit to help meet
whole life policy may also help you meet these and other financial goals.
If you are in business for yourself, you know how important it is to have
flexible sources of cash or credit to help meet short-term expenses or take
advantage of business opportunities. A policy loan may offer better terms
than conventional sources of business credit. You can borrow against your
available cash value at any time, and there is no fixed repayment schedule.2
Loan interest is charged when a policy loan is taken. If you take additional policy loans to pay loan interest, your policy’s cash value will be reduced. At
some point, no policy values may be available to pay additional loan interest and out-of-pocket payments will be required to prevent the policy from
lapsing. Failure to pay out-of-pocket amounts will result in the loss of life insurance coverage and a tax liability in the year of lapse.
A Source of Supplemental Retirement Income
Today, many people realize that the traditional sources of retirement income, such as Social Security
and employer-provided retirement plans, may not provide enough income to maintain their standard
of living in retirement. They recognize the need to supplement these plans with additional personal
Your MassMutual Whole Life Legacy policy can be an effective way to
supplement your retirement income strategy because it offers:
• A systematic and disciplined approach to setting aside funds;
• Stable and consistent tax-deferred growth in cash values; and
• The ability to provide tax-advantaged income1 during retirement.
Adding the Waiver of Premium Rider, for an additional premium, can help
ensure that your coverage will continue and your policy’s cash value will
continue to grow, even if you are totally disabled and cannot work.
Your whole life policy may also help you weather market downturns during
retirement. The guaranteed cash value does not fluctuate based on changes
in the stock or bond markets, making whole life an alternative source of
tax-advantaged supplemental retirement income at a time when your other
retirement assets have declined in value.
Projected Social Security Retirement Benefits
Based on Pre-Retirement Income Level
Social Security Benefit
and Current Income
Pre-Retirement Income Level
Estimated Social Security retirement income benefit calculated on 1/2/2014 using the
Social Security Quick Calculator at www.ssa.gov. Percentages are based on projected
benefits for an individual currently age 45 retiring at age 67.
Living a More Secure and Comfortable Retirement
Individuals often assume that their need for life insurance protection ends when they retire. In fact,
post-retirement life insurance can be a valuable asset that may help you take some of the uncertainty
out of retirement.
For example, one of the most common issues facing retiring couples is that their retirement benefits provided by Social
Security, pension plans and/or annuities may be reduced after one of them dies. Unfortunately, this may occur at a time when
the surviving spouse still needs the additional income. Your whole life policy’s death benefit can help make up for the
reduction in these benefits by providing an income tax-free payment to the surviving spouse.
In general, knowing that your whole life policy’s death benefit proceeds will be available as an additional financial resource
after your death can give you and your spouse the confidence to fully utilize your other retirement assets, and ultimately live a
more comfortable and secure retirement.
Ensuring Your Legacy for the Future
Many people work hard to build wealth and feel it is important to leave something to the next
generation or a charity. Whole life insurance offers a flexible and efficient way to ensure a financial
legacy for the people who matter most to you.
It is important to consider the types of assets you will
Cash to pay taxes due at death – The proceeds of a
leave and how they may impact your wealth transfer goals.
whole life policy can provide cash exactly when needed
For example, the value of assets such as real estate and
to help pay income or estate taxes that are due at death.
securities may vary based on market conditions. Some types
of financial assets, such as individual retirement accounts
and annuities, may be reduced by income taxes after
passing to your heirs. In addition, property such as business
Reduce estate taxes – The ownership of the policy may
be set up in such a way that the death proceeds will not
be included in your estate for estate tax purposes.
interests, vacation homes or family heirlooms are not easily
Avoid probate – Death proceeds of your whole life
divided among family members, and may not be quickly
policy paid directly to your beneficiaries will avoid the
converted into cash at a time when cash may be needed to
costs and delays of probate and will not be part of any
pay taxes or expenses.
Your MassMutual whole life insurance policy can help
These advantages mean that your MassMutual whole life
ensure your legacy to your family, and may be an essential
policy may be a valuable estate planning tool that can help
part of your overall wealth transfer strategy. Consider some
you to achieve your wealth transfer goals.
of the advantages that whole life insurance offers as a means
of transferring wealth to the next generation:
Income tax-free death benefit – The beneficiary will
generally receive the death proceeds income tax free.
Easily divided – The death benefit is paid in cash directly
to your beneficiaries based on your wishes.
Value not subject to market conditions – Unlike
The values of assets such as real estate and
securities may vary based on market conditions.
Some types of financial assets, such as qualified
retirement accounts and annuities, may be reduced
by income taxes after passing to your heirs.
other assets such as securities or real estate, your
whole life policy death benefit will not vary based
on market conditions.
A Portfolio of Solutions
MassMutual offers different types of whole life policies to help meet a variety of financial objectives.
Each policy is guaranteed to be paid-up (premiums are no longer payable) at a certain age or after a
specific number of premium payments. In general, a policy with a shorter premium payment period will
have a higher annual premium and accumulate cash value more rapidly.
MassMutual’s Whole Life Policies
How long premiums are paid
Whole Life Legacy 100SM
To age 100*
Whole Life Legacy 65SM
To age 65*
Whole Life Legacy 20 PaySM
Whole Life Legacy 10 PaySM
Whole Life Legacy HECVSM
To age 85*
* Final premium payment at attained age less one year.
Helping You Prepare for the Future
It is important to have financial resources that will help you prepare for whatever life brings.
A whole life policy from MassMutual can help you protect your family
during your working years, allow you and your spouse to live a more
comfortable retirement and may help you leave more to your children
A whole life policy may be a good choice if you:
• Need life insurance to protect your family;
• Value guarantees and dependability;
• Want to accumulate cash value on a tax-deferred basis as a potential
source of tax-advantaged supplemental retirement income;1 or
• Want to include permanent life insurance as part of your legacy to
Important Considerations When Purchasing Whole Life Insurance
A MassMutual whole life policy may help you address different financial
concerns over your lifetime. However, you should keep in mind that your
ability to use your whole life policy to help meet multiple financial needs
will depend upon a number of different factors. Your financial professional
is an important resource for you throughout the life of your policy. He or
she can guide you through important decisions like:
• How much coverage and what type of whole life policy to purchase;
• How long you pay out-of-pocket premiums;
• The dividend option3 to best complement your goals; and
• Accessing income from the policy in the form of partial surrenders
or policy loans.
Get started by asking your financial professional for a whole life illustration today.
Dividends are not guaranteed.
MassMutual. We’ll help you get there.®
There are many reasons to choose a life insurance company to help meet
your financial needs: protection for your family or business, products to
provide supplemental income and the confidence of knowing you will be
prepared for the future.
At Massachusetts Mutual Life Insurance Company (MassMutual), we
operate for the benefit of our participating policyowners. We stand strong
in the fundamental belief that every secure future begins with a good
decision. And when choosing a life insurance company – ownership,
strength and stability matter.
Learn more at www.massmutual.com/mutuality
The Whole Life Legacy Series (WL-2007 and WL-NC-2007) are level-premium, participating, permanent life insurance policies issued by Massachusetts
Mutual Life Insurance Company, Springfield, MA 01111-0001.
© 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.