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Advance Wealth Transfer Single Premium Life Insurance

A concern many of us are faced with is protecting our financial legacy as we work a lifetime to provide financial security for our loved ones. Oxford Life designed Advance Wealth Transfer single premium life insurance for individuals interested in transferring wealth to their heirs with minimal tax and probate consequences. More information regarding the policy features and benefits can be found below.

Advance Wealth Transfer Policy Features

  • Available to individuals ages 50 to 85
  • Only one premium to pay for the life of the policy
  • Guaranteed Death Benefit
  • Immediate increase in the value of your estate
  • A guaranteed cash value that increases each year
  • Safety from market fluctuations
  • Immediate approval decision made during the point-of-sale interview
  • Liquidity features in case you have a financial emergency 1
  • Accelerated benefits offered 2
    • Home Health Care Benefit
    • Terminal Illness Benefit
    • Nursing Home Benefit

See How Advance Wealth Transfer Stacks Up

Comparison to Investment Options
AWT Annuity CD/MM Stocks
Income Tax-Free Death Benefit Yes No No No
Tax-Deferred Accumulation Yes Yes No No
Immediate Estate Increase Yes No No No
Avoids Market Risk Yes Sometimes Yes No
Avoids Probate Costs Yes Yes No No
Accelerated Benefit Riders Yes Sometimes No No
Guaranteed Values Yes Sometimes Yes Yes
Comparison to a Taxable Certificate of Deposit (CD)

A 60 year old female in a 28% tax bracket places $50,000 in a CD 3 that earns 3.5% interest.

AWT CD
Year Guaranteed Death Benefit
Paid to Heirs Income Tax-Free 		Available to Heirs
Net of Income Tax
1 $114,736.00 $51,282.25
5 $114,736.00 $56,748.61
10 $114,736.00 $64,408.09
15 $114,736.00 $73,101.39
20 $114,736.00 $82,968.04
25 $114,736.00 $94,166.42
May Help Recoup Losses Suffered in Stock Market Crash

The Oxford Life Advance Wealth Transfer plan may help you recoup losses that were suffered during a stock market crash, while eliminating stock market risk.

Mary, a 60-year-old female (non-tobacco, Tier 1) originally purchased $75,000 in a stock portfolio

The portfolio suffered losses of
$25,000
to diminish the value to only
$50,000

The client would like to eliminate stock market risk, but they are concerned about the loss of capital they suffered in the stock market
Strategy:
Client sells the stock portfolio and may possibly be able to write-off the
$25,000
capital loss on their income taxes4

The remaining value of
$50,000
is placed into an AWT single premium life plan
The AWT single premium life plan guarantees a death benefit of
$114,736

This increase is locked in immediately and passes upon death, income tax-free to their designated beneficiaries
Free-Up Money and Still Leave Assets for Loved Ones
$50,000
Asset earmarked to be left to heirs by 60 year old female, non-smoker, Tier 1
$30,000
Transferred to a single premium life plan
The life plan creates an immediate death benefit value of
$68,759
Income Tax-Free
$20,000
Freed up for your personal use!

Notes:

1 Current Federal income tax laws define this contract as a Modified Endowment Contract (MEC). As a MEC, if there is any gain in the policy, the portion of the gain included in any distribution from the policy, including loans may be taxable and must be reported as taxable income. Also, if a distribution occurs prior to age 59 ½, the distribution may be subject to a 10% tax penalty. Therefore, it is important that you only purchase an Advance Wealth Transfer policy with assets that you are reasonably confident you will not need in the future for your own use. NOTE: Insurance products and annuities are not deposits in, or guaranteed by, any bank and are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States. All guarantees are subject to the financial strength of Oxford Life Insurance Company.
2 Product availability and accelerated benefit features may vary by state. Please refer to Policy #SPE100. Death benefits, cash values and loan values will be reduced upon payment of an accelerated benefit. The accelerated benefits offered under this policy may or may not qualify for favorable tax treatment under the Internal Revenue Code of 1986. Whether such benefits qualify depends on factors such as your life expectancy at the time benefits are accelerated or whether you use the benefits to pay for necessary long-term care expenses, such as nursing home care. If the acceleration of benefits qualifies for favorable tax treatment, the benefits will be excluded from your income and not subject to Federal taxation. However, accelerated benefit payments may be taxable by your state. Tax laws relating to accelerated benefits are complex. You should consult a qualified tax advisor for specific information. Receipt of an accelerated benefit payment may adversely affect you, your spouse’s or your family’s eligibility for medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary Social Security Income (SSI), and drug assistance programs. You should consult with a qualified advisor and with social services agencies regarding how receipt of such payment may affect eligibility for such programs. NOTE: The benefits provided in the accelerated benefits rider of the Advance Wealth Transfer policy are not long-term care (LTC) insurance.
3 For demonstration purposes only. Interest is approximated on a daily compounded basis. Bank CD rates can vary over time. Consult a tax professional for your individual client’s combined federal and state tax bracket.
4 Consult a tax advisor for specific advice. Rates as of 01/01/09