MASSMUTUAL BY THE NUMBERS . It’s one thing to talk about growth and value. It’s
another to have the numbers that back it up consistently. At MassMutual, your
whole life insurance is a valuable part of your financial strategy. It provides life
insurance protection and the potential for an additional source of funds if your
evolving needs require it. There’s a lot more we can say about it but we prefer
to let the numbers do the talking.
Consider whole life insurance
as part of your overall
financial strategy
Whole life policy guarantees
The following diagram illustrates how the basic guaranteed elements fit
together for a typical whole life policy where the level premiums are
payable to age 100.
Guaranteed face amount
Investments
GUARANTEED
CASH VALUE
Real Estate
Retirement
Accounts
Business
Interests
Guaranteed
Level Premiums
Age 100
Age at issue
Whole life policy with paid-up additions
Whole Life
Insurance
The majority of MassMutual's policyowners use their dividend
payments1 to purchase paid-up additional whole life insurance, also
called paid-up additions.
Paid-up
additional
insurance
purchased
by policy
dividends
Additional death benefit
It is important to consider how the different types of assets
that you own will help you address your financial needs today
and as they evolve over time. As an example, most people
purchase their home because they need a place to live.
However, during a latter part of their lives they may use the
equity in their home for other purposes such as helping to pay
for their children’s education or provide for their retirement.
1 Dividends
Guaranteed face amount
GUARANTEED
CASH VALUE
Age at issue
Age 100
are not guaranteed.
The information provided is not written or intended as specific tax or legal advice. MassMutual, its 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.
FACTS. To the Fullest. MassMutual by the numbers.
PAGE 2 OF 2
Important considerations when
purchasing whole life insurance
CAPITAL RATIO (%)
The capital ratio measures capital and
surplus in relation to an insurer’s overall size.
MassMutual is one of the highest ranked life
insurers based on capital ratio.
Whole life insurance can help you protect the ones you love and can help you
address different financial needs over the course of 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
that include:
The amount and type of life insurance
How long you pay premiums out-of-pocket;
• The amount of potential future dividends1 and how they are applied; and
• The amount of any distributions that you take from the policy,
such as partial surrenders or policy loans.2
Rank Company (10 largest life insurance groups3) 2013
•
•
1
State Farm Mutl Automobile Ins
14.48%
2
Hartford Financial Services
14.15%
3
TIAA-CREF
13.26%
4
Pacific MHC
12.17%
5
Guardian Life Ins Co. of Am
10.49%
6
Massachusetts Mutual Life Ins Co
9.58%
7
AXA
9.52%
Whole life can be an effective way to accumulate additional
funds for retirement
8
Northwestern Mutl Life Ins Co.
8.97%
A MassMutual whole life insurance policy offers:
9
Aflac Inc.
8.96%
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 income during retirement.2
10
AEGON
8.93%
1
Using your policy dividend payments to purchase
additional paid-up whole life insurance is a tax-efficient
way to buy additional life insurance coverage without
any medical underwriting and accumulate additional
cash value.
•
•
A changing environment
$250,000
Annual Income
Today individuals earning higher incomes
are realizing 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
retirement savings.
Projected Social Security Retirement Benefits Based on Pre-Retirement Income Level
2 Distributions
CRN201611-186578
Social Security Retirement Income
$150,000
$100,000
$50,000
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, policy loans and/or distributions are taxable
to the extent of gain and are subject to a 10% tax penalty.
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.
Difference Between Social Security
Benefit and Current Income
$200,000
0
41%
30%
22%
16%
13%
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.
3 Largest
10 life insurance groups based on general
account assets as of 12/31/13.
Capital ratio is capital and surplus as a percent of
general account assets as of 12/31/13. General account
assets are total admitted assets excluding separate account
assets. Admitted assets are those which are allowed by state
regulators to be included in an insurer’s annual statement.
Source: SNL Financial; SNL data (as of 04/23/14) on
group basis includes parent and life subsidiaries adjusted
with eliminating entries by SNL where relevant.
Whole life insurance products issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated
companies and sales representatives.