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Home : Life Insurance Products : Variable Universal Life Insurance : Power of Tax Deferral
The Power of Tax-Deferral
Tax-advantaged growth potential means that you keep a greater portion than you would with annually taxable investments. For you, this may mean more wealth accumulation for you and your heirs.
Earnings in a variable universal life insurance policy accumulate on a tax-deferred basis. As life insurance, the net death benefit is generally income tax-free to the policy's beneficiaries. Also, distributions and policy loans taken during the insured's lifetime may not be taxable.1 All the net contract value you earn over the years grows and compounds...without being reduced by taxes.2
Consider Variable Universal Life Insurance if...
- Your present life insurance is inadequate.
- You have already funded your retirement, but want to reposition assets in a more tax-efficient manner.
- You wish to designate funds for heirs, business continuance or a favorite charity.
- You seek tax-advantaged growth through numerous investment options.
Note: Sub-accounts are subject to market risk and may fluctuate in value.
1 Unless the policy is classified as a Modified Endowment Contract (MEC), policy loans are not taxable when taken, and distributions during the insured's lifetime are treated as coming first from previously taxed amounts up to the "tax basis" in the policy. Distributions from life insurance policies classified as MECs are generally subject to the same taxation rules as annuities if taken during the policyholder's lifetime, including the 10% tax penalty if taken prior to age 59 1/2.
2 The investment return and principal value of an investment will fluctuate so that withdrawn investments may be worth more or less than their original value.
This is a summary of product highlights only. For additional information and a full listing of fees, expenses, features and options available, please refer to the respective prospectus. A current prospectus, as well as current prospectuses for the underlying portfolios, must accompany sales. Please read these prospectuses carefully before you invest. All investment sub-accounts may not be available in all jurisdictions. Transamerica Securities Sales Corp., Distributor.
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