An Educational Guide
for Consumers
The Cost of Waiting
Advantages of buying whole life now
Insurance Strategies
Table of Contents
1 | The Cost of Waiting Means Paying More and Getting Less
2 | Protecting Sean’s Family
3 | Sean’s Cost of Waiting
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.
The information in this brochure 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.
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
The Cost of Waiting Means Paying More and Getting Less
We’ve all heard the expression “never put off until tomorrow what you can do today.” The fact is that many people
wait to put plans into action, even when they know that delaying goes against their own best interest. Whether it
is beginning a program of regular exercise or saving for your children’s college education, there are advantages to
starting sooner rather than later.
The same is true with purchasing life insurance. Buying the right amount
and the right type of life insurance early in life may offer substantial
long-term benefits. This guide illustrates the advantages of buying
permanent, participating whole life insurance at a younger age in order to
avoid “the cost of waiting.”
Whole life insurance offers guaranteed level premiums that are based on
your age when the policy is issued. As your issue age increases, the annual
premium needed to purchase the same amount of whole life insurance
also increases. In addition, your total policy cash value and death benefit
may be less than if you had bought the policy at a younger age. The
following hypothetical example illustrates this cost of waiting to buy
whole life insurance.
MassMutual Whole Life Insurance
Whole life insurance from MassMutual offers a combination of
protection, guarantees, cash accumulation and income tax
advantages. The generally tax-free policy death benefit can
help protect your income during your working years, help
provide support to a surviving spouse during retirement or
assure a legacy to your family. In addition, whole life provides
tax-deferred accumulation of policy cash values and the ability
to access these cash values on a tax-advantaged basis via
partial surrenders and policy loans.1
MassMutual whole life insurance offers a solid long-term value
to policyowners, and purchasing whole life insurance early in
life makes good financial sense.
Distributions under a policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (the 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 if the policyowner is under age 59½.
1
Access to cash values through borrowing or partial surrenders can 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.
1
Protecting Sean’s Family
Sean is married with an 18-month-old son and a new baby daughter. Sean and his wife have decided that she
will stop working to stay at home and take care of their children on a full-time basis. With only Sean’s income
supporting the family, he wants to be sure that they would be financially secure if he were to die unexpectedly.
As part of his overall protection plan, Sean’s financial
The “Buy Term and Convert Later” Alternative
professional determines that he needs an additional $500,000
Sean’s financial professional explains that, as an alternative,
of life insurance to protect his family. He suggests the
he could buy less expensive term life insurance now,
purchase of a MassMutual Whole Life Legacy 100 policy.
and convert all or part of the term coverage to whole life
Sean can see the value in purchasing a participating whole life
insurance later. However, he also explains that this option
policy, but he’s not sure if it fits within their budget right now.
has a potential cost that Sean should consider. He shows
Sean’s situation is common to many growing
families. They have a lot going on, with many new
expenses and limited income. However, this is also
the time when financial protection for the family
can be most important.
Sean the following comparison:
SM
Sean is currently 35 years old and in excellent heath.
If he were to purchase the $500,000 Whole Life Legacy
100 policy today, the guaranteed annual premium for the
policy would be $6,105, including the cost for a Waiver of
Premium Rider.
If instead, Sean chose to purchase a $500,000 10-year term
policy that is convertible to whole life, the guaranteed annual
premium over the first 10 years would be only $290.
If Sean purchased the $500,000 10-year term policy, and
converted the term policy to a $500,000 Whole Life Legacy
100 in five years when he turns age 40, the whole life annual
premium would increase to $7,725.
2
Sean’s Cost of Waiting
The following table summarizes the cost of waiting to purchase whole life insurance. By age 65, Sean would pay an extra
$11,425 in premiums and his policy’s cash value will be lower by $50,148. That’s a total of $61,573. In addition, the policy
death benefit at age 65 is reduced by $62,287 if Sean waits to buy whole life.
The Cost of Waiting to Purchase Whole Life Insurance2
The Age at Which
Sean Purchases
Whole Life Insurance
Whole Life
Annual Premium
Cumulative Premiums
to Age 65
Total
Policy Cash Value3
at Age 65
Total
Policy Death Benefit3
at Age 65
35
$6,105
$183,150
$357,257
$771,331
40
$7,725
$194,575
$307,109
$709,044
Difference
$1,620
$ 11,425
$ 50,148
$ 62,287
4
As this example demonstrates, buying whole life at
an earlier age will allow you to take advantage of
lower premium rates and gives you the potential to
accumulate more total cash value and a larger
total death benefit in the future.
Comparison based on Whole Life Legacy 100SM, Male, Issue Ages 35 and
40, Select Preferred Non-Tobacco, $500,000 Policy Face Amount.
Assumes dividends are applied to purchase paid-up additions. These
supplemental illustrations are not valid unless accompanied by
the following Whole Life Legacy 100 illustrations. Refer to them
for assumptions, explanations, guaranteed elements and
additional information. They represent hypothetical participating
policies with premiums payable to age 100 issued by MassMutual. These
illustrations should only be used as a reference that supports the values in
this brochure. They are not meant to represent any particular individual’s
situation. If you’d like to learn more, ask your financial professional for a
personalized illustration based on your specific situation.
2
These values include dividends which are neither estimates nor
guarantees, but are based on the 2017 dividend schedule. The dividend
schedule is reviewed annually and it is likely that dividends in future
years will be lower or higher depending on the Company’s actual
experience. For this reason, we strongly recommend that you look at a
hypothetical lower schedule illustration available upon request.
4
Equals the sum of the Vantage Term®-10 term premiums of $290 for 5
years from age 35 through age 39 ($1,450), plus the sum of the annual
whole life premiums of $7,725 for 25 years from age 40 to age 65
($193,125) for a total of $194,575.
3
3
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Narrative Summary
Whole Life Legacy 100 is a permanent life insurance policy providing a guaranteed face amount. Premiums are payable to Age 100.
The duration of premiums for riders varies according to the terms of the rider. This illustration is neither projection nor estimate of
future benefits and assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years
shown. This is not likely to occur and values are subject to change. Actual results may be more or less favorable than those
shown. For this reason, we strongly recommend reviewing an illustration specific to your situation showing a lower dividend
schedule to see the impact this would have on policy values. Changing the premium payment mode from annual may increase the
overall cost of the policy. Based on the illustrated dividend schedule, this policy would not become a Modified Endowment Contract
(MEC) under the Internal Revenue Code based on the assumptions in this illustration. Changes to the policy could cause the policy to
become a MEC or change the year that the policy is illustrated to become a MEC. Once a policy is classified as a MEC, it receives
less advantageous federal income tax treatment than a non-MEC policy.
Policy
Limited Payment Whole Life with Premiums Payable to Age 100
Generic Policy Name
Whole Life Policy
Policy Form Number
WL-2007
Initial Base Dividend Option
Paid-Up Additions
Annual Base Premium
$5,940.00
Annual Waiver of Premium (WP) Rider Premium
$165.00
Total Initial Death Benefit
$500,000.00
Additional Coverage Provided by Rider(s)
Accelerated Death Benefit for Terminal Illness Rider (ABR): The Accelerated Death Benefit for Terminal Illness Rider allows the
policyowner to receive an advance of policy death benefits when MassMutual receives satisfactory proof the insured has a terminal
illness expected to result in death within the period set forth in the Rider. There is no cost for the addition of this rider however there is
a fee if the rider is exercised.
Transfer of Insured Rider (TIR): The Transfer of Insured Rider provides the policyowner with the right to transfer or exchange a new
insured in place of the current insured under the policy, provided an insurable interest exists between the owner and the new insured,
the new insured is not older than age 75 and evidence of insurability is provided. There is no annual premium for the rider however
there is a cost due if exercised.
Waiver of Premium Rider (WP): This rider waives the policy premiums for certain periods if the insured becomes totally disabled, as
defined in the rider prior to age 60 and remains disabled for at least six months. Temporary waiver benefits also are available for total
disability beginning after age 59, but prior to age 65. Premiums are payable to age 65 or the end of the premium paying period of the
policy, if earlier.
Column Heading Definitions
Age End Year: The age of the insured at the end of the policy year.
Contract Premium Beg Year: The gross premium required to be paid at the beginning of the policy year.
Guaranteed Cash Value End Year: The cash value which is guaranteed under this policy based upon the illustrated Contract Premium
for Guaranteed Values as of the end of the policy year.
Guaranteed Death Benefit End Year: The amount of death benefit which is guaranteed to be payable at death based upon the
illustrated Contract Premium for Guaranteed Values as of the end of the policy year.
Total Cash Value End Year: The total cash value as of the end of the policy year including all guaranteed and non-guaranteed values.
These values are based on the illustrated dividend schedule and are not guaranteed.
Total Death Benefit End Year: This is the amount that would be payable if death occurred at the end of the policy year. These values
are based on the illustrated dividend schedule and are not guaranteed.
Year: The number of years the policy is assumed to have been in force at the end of the policy year.
Prepared for: Sean Client (Male, 35, Select Preferred Non Tobacco)
Prepared on: November 7, 2016
Prepared by: MassMutual Financial Professional
Page 1 of 3
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Numeric Summary
Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends
will change all Non-Guaranteed values shown in this illustration.
To help you understand how changes in non-guaranteed dividends may affect your future policy values, this Numeric Summary shows
how your policy would perform based on each of the following dividend scenarios:
1) Guaranteed: The guaranteed policy values, i.e., zero dividends.
2) Non-Guaranteed Midpoint: 50% of the Company's currently illustrated dividend.
3) Non-Guaranteed Current: The Company's currently illustrated dividend.
Guaranteed Values
Year 5
Year 10
Year 20
Age 70
Contract
Premium
6,105
6,105
6,105
5,940
Total
Cash
Value
15,945
47,765
122,715
254,940
Midpoint Assumptions
Total
Death
Benefit
500,000
500,000
500,000
500,000
Prepared for: Sean Client (Male, 35, Select Preferred Non Tobacco)
Prepared on: November 7, 2016
Total
Cash
Value
17,193
51,905
141,363
358,762
Total
Death
Benefit
504,981
513,939
545,473
668,319
Current Assumptions
Total
Cash
Value
18,471
56,394
163,316
499,024
Total
Death
Benefit
510,079
529,053
599,006
895,714
Prepared by: MassMutual Financial Professional
Page 2 of 3
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Tabular Values
Guaranteed Values
Age Contract
End Premium
Year Year Beg Year
1
36
6,105
2
37
6,105
3
38
6,105
4
39
6,105
5
40
6,105
6
41
6,105
7
42
6,105
8
43
6,105
9
44
6,105
10
45
6,105
15
50
6,105
20
55
6,105
25
60
6,105
30
65
6,105
35
70
5,940
40
75
5,940
45
80
5,940
50
85
5,940
55
90
5,940
60
95
5,940
65 100
5,940
Guaranteed
Guaranteed
Cash Value Death Benefit
End Year
End Year
0
500,000
0
500,000
4,495
500,000
10,125
500,000
15,945
500,000
21,950
500,000
28,140
500,000
34,510
500,000
41,055
500,000
47,765
500,000
84,140
500,000
122,715
500,000
164,670
500,000
209,270
500,000
254,940
500,000
301,600
500,000
346,385
500,000
385,425
500,000
416,665
500,000
442,785
500,000
500,000
500,000
Non-Guaranteed Values*
Total
Total
Cash Value Death Benefit
End Year
End Year
0
500,000
0
500,000
5,265
503,292
11,731
506,632
18,471
510,079
25,486
513,631
32,775
517,268
40,344
521,008
48,218
524,937
56,394
529,053
102,213
551,671
163,316
599,006
247,874
674,915
357,257
771,331
499,024
895,714
679,582
1,047,975
902,093
1,231,387
1,168,881
1,454,444
1,479,341
1,721,888
1,825,618
2,018,695
2,301,268
2,301,268
*Non-guaranteed values include dividends, which are neither estimates nor guarantees, but are based on the 2017 dividend
schedule. This illustration assumes that non-guaranteed elements will continue unchanged for all years shown. Non-guaranteed
elements are subject to change by the insurer. The dividend schedule is reviewed annually and it is likely that dividend
schedules will be more or less favorable. Factors that may affect future policy performance include mortality experience,
investment earnings, company expenses and other company experience and expectations. We strongly recommend that you
request a hypothetical lower schedule illustration specific to your situation.
Prepared for: Sean Client (Male, 35, Select Preferred Non Tobacco)
Prepared by: MassMutual Financial Professional
Prepared on: November 7, 2016
Page 3 of 3
Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Narrative Summary
Whole Life Legacy 100 is a permanent life insurance policy providing a guaranteed face amount. Premiums are payable to Age 100.
The duration of premiums for riders varies according to the terms of the rider. This illustration is neither projection nor estimate of
future benefits and assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years
shown. This is not likely to occur and values are subject to change. Actual results may be more or less favorable than those
shown. For this reason, we strongly recommend reviewing an illustration specific to your situation showing a lower dividend
schedule to see the impact this would have on policy values. Changing the premium payment mode from annual may increase the
overall cost of the policy. Based on the illustrated dividend schedule, this policy would not become a Modified Endowment Contract
(MEC) under the Internal Revenue Code based on the assumptions in this illustration. Changes to the policy could cause the policy to
become a MEC or change the year that the policy is illustrated to become a MEC. Once a policy is classified as a MEC, it receives
less advantageous federal income tax treatment than a non-MEC policy.
Policy
Limited Payment Whole Life with Premiums Payable to Age 100
Generic Policy Name
Whole Life Policy
Policy Form Number
WL-2007
Initial Base Dividend Option
Paid-Up Additions
Annual Base Premium
$7,490.00
Annual Waiver of Premium (WP) Rider Premium
$235.00
Total Initial Death Benefit
$500,000.00
Additional Coverage Provided by Rider(s)
Accelerated Death Benefit for Terminal Illness Rider (ABR): The Accelerated Death Benefit for Terminal Illness Rider allows the
policyowner to receive an advance of policy death benefits when MassMutual receives satisfactory proof the insured has a terminal
illness expected to result in death within the period set forth in the Rider. There is no cost for the addition of this rider however there is
a fee if the rider is exercised.
Transfer of Insured Rider (TIR): The Transfer of Insured Rider provides the policyowner with the right to transfer or exchange a new
insured in place of the current insured under the policy, provided an insurable interest exists between the owner and the new insured,
the new insured is not older than age 75 and evidence of insurability is provided. There is no annual premium for the rider however
there is a cost due if exercised.
Waiver of Premium Rider (WP): This rider waives the policy premiums for certain periods if the insured becomes totally disabled, as
defined in the rider prior to age 60 and remains disabled for at least six months. Temporary waiver benefits also are available for total
disability beginning after age 59, but prior to age 65. Premiums are payable to age 65 or the end of the premium paying period of the
policy, if earlier.
Column Heading Definitions
Age End Year: The age of the insured at the end of the policy year.
Contract Premium Beg Year: The gross premium required to be paid at the beginning of the policy year.
Guaranteed Cash Value End Year: The cash value which is guaranteed under this policy based upon the illustrated Contract Premium
for Guaranteed Values as of the end of the policy year.
Guaranteed Death Benefit End Year: The amount of death benefit which is guaranteed to be payable at death based upon the
illustrated Contract Premium for Guaranteed Values as of the end of the policy year.
Total Cash Value End Year: The total cash value as of the end of the policy year including all guaranteed and non-guaranteed values.
These values are based on the illustrated dividend schedule and are not guaranteed.
Total Death Benefit End Year: This is the amount that would be payable if death occurred at the end of the policy year. These values
are based on the illustrated dividend schedule and are not guaranteed.
Year: The number of years the policy is assumed to have been in force at the end of the policy year.
Prepared for: Sean Client (Male, 40, Select Preferred Non Tobacco)
Prepared on: November 7, 2016
Prepared by: MassMutual Financial Professional
Page 1 of 3
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Numeric Summary
Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends
will change all Non-Guaranteed values shown in this illustration.
To help you understand how changes in non-guaranteed dividends may affect your future policy values, this Numeric Summary shows
how your policy would perform based on each of the following dividend scenarios:
1) Guaranteed: The guaranteed policy values, i.e., zero dividends.
2) Non-Guaranteed Midpoint: 50% of the Company's currently illustrated dividend.
3) Non-Guaranteed Current: The Company's currently illustrated dividend.
Guaranteed Values
Year 5
Year 10
Year 20
Age 70
Contract
Premium
7,725
7,725
7,725
7,490
Total
Cash
Value
19,585
57,800
146,015
241,305
Midpoint Assumptions
Total
Death
Benefit
500,000
500,000
500,000
500,000
Prepared for: Sean Client (Male, 40, Select Preferred Non Tobacco)
Prepared on: November 7, 2016
Total
Cash
Value
21,311
63,826
172,189
327,588
Total
Death
Benefit
505,810
517,230
555,025
639,884
Current Assumptions
Total
Cash
Value
23,076
70,372
203,294
439,981
Total
Death
Benefit
511,754
535,945
620,416
822,096
Prepared by: MassMutual Financial Professional
Page 2 of 3
Massachusetts Mutual Life Insurance Company (MassMutual)
Whole Life Legacy 100 – Life Insurance Illustration
Tabular Values
Guaranteed Values
Age Contract
End Premium
Year Year Beg Year
1
41
7,725
2
42
7,725
3
43
7,725
4
44
7,725
5
45
7,725
6
46
7,725
7
47
7,725
8
48
7,725
9
49
7,725
10
50
7,725
15
55
7,725
20
60
7,725
25
65
7,725
30
70
7,490
35
75
7,490
40
80
7,490
45
85
7,490
50
90
7,490
55
95
7,490
60 100
7,490
Guaranteed
Guaranteed
Cash Value Death Benefit
End Year
End Year
0
500,000
0
500,000
5,655
500,000
12,535
500,000
19,585
500,000
26,810
500,000
34,225
500,000
41,830
500,000
49,690
500,000
57,800
500,000
101,725
500,000
146,015
500,000
193,095
500,000
241,305
500,000
290,565
500,000
337,835
500,000
379,050
500,000
412,030
500,000
439,600
500,000
500,000
500,000
Non-Guaranteed Values*
Total
Total
Cash Value Death Benefit
End Year
End Year
0
500,000
0
500,000
6,650
503,583
14,684
507,481
23,076
511,754
31,857
516,440
40,964
521,243
50,401
526,150
60,203
531,050
70,372
535,945
127,567
563,017
203,294
620,416
307,109
709,044
439,981
822,096
609,190
961,922
819,174
1,133,508
1,072,490
1,344,782
1,368,884
1,600,212
1,701,290
1,885,651
2,157,752
2,157,752
*Non-guaranteed values include dividends, which are neither estimates nor guarantees, but are based on the 2017 dividend
schedule. This illustration assumes that non-guaranteed elements will continue unchanged for all years shown. Non-guaranteed
elements are subject to change by the insurer. The dividend schedule is reviewed annually and it is likely that dividend
schedules will be more or less favorable. Factors that may affect future policy performance include mortality experience,
investment earnings, company expenses and other company experience and expectations. We strongly recommend that you
request a hypothetical lower schedule illustration specific to your situation.
Prepared for: Sean Client (Male, 40, Select Preferred Non Tobacco)
Prepared by: MassMutual Financial Professional
Prepared on: November 7, 2016
Page 3 of 3
Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001
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
Whole Life Legacy 100 (WL-2007 and WL-NC-2007) is a level-premium, participating, permanent life insurance policy issued by Massachusetts Mutual Life
Insurance Company, Springfield, MA 01111-0001.
Vantage Term Life Insurance Policies (Policy Form TL-2009 and ICC09TL in certain states, including North Carolina) are participating, annually renewable
term life insurance issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. Dividends are not expected to be paid.
© 2016 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.
LI76034 1116
CRN201711-206233