May Help Recoup Losses Suffered in Stock Market Crash
The Oxford Life Prosperity Select plan may help you recoup losses that were
suffered during a stock market crash, while eliminating stock market risk. For example,
Mary, a 60-year-old female (non-tobacco, Tier 1) originally purchased $75,000 in
a stock portfolio.
May Help Recoup Losses Suffered in Stock Market Crash
1Current 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 Prosperity Select 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.
2Product availability and accelerated benefit features may vary by state.
Please refer to Policy ICC10-SPWL500, ICC10-ADB-CIR, ICC10-ADB-NAR and state variations
where applicable. 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 Prosperity Select policy are not long-term care (LTC) insurance.
3For 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.