New Prestige Indexed 10 Pay Whole Life Insurance logo

A gift for life

Gifting annual premiums on an indexed whole life insurance policy
can help establish a financial foundation for a child’s entire life
Learn more about using IWL to gift premiums to love ones
For many clients, retirement isn’t just a time to relax, it’s an opportunity to focus on their loved ones, soaking up as much time as they can get with kids and grandkids. It can also be an opportunity to establish a solid financial foundation for future generations, and gifting annual premiums on a permanent life insurance policy may be a viable option for many clients.

A Prestige Indexed 10 Pay whole life insurance policy can be an excellent product choice for this strategy because it features:
  • Growth that’s based, in part, on index performance,1 offering accumulation potential that may be higher than other life insurance products
  • A 0% floor on returns, offering protection from losses due to market declines2
  • Guaranteed cash value accumulation, a guaranteed death benefit and level, guaranteed premium payments
  • Only 10 years of premium payments required for the policy

Meet Anne and Richard

68-year-old Richard and his wife, 64-year-old Anne, retired from their respective careers as an attorney and a small business owner two years ago. They did well for themselves throughout their working lives, built a substantial nest egg and have been enjoying time to relax and spend with their son, Alex. Last year, Alex and his wife, Jennifer, had their first child, Amanda.

Richard and Anne knew they wanted to do something to help Amanda financially, but weren’t sure what. On the recommendation of their financial professional, they ultimately decided to use a portion of their annual gift tax exclusions – a total of $20,000 each year – to establish a trust in Amanda’s name and fund a Prestige Indexed 10 Pay life insurance policy.3

Her grandparents’ gift may give Amanda the flexibility to access the policy’s cash value throughout her life to meet a variety of financial needs while providing a long-term death benefit.
Timeline example of IWL used to gift premium

Prestige Indexed 10 Pay can help your clients give their loved ones a head start too.

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1 Interest linked growth is based in part on the movement of the selected market index and is subject to applicable caps, spreads and/or participation rates.

2 The policy’s account value may still decline due to cost of insurance charges and expenses deducted.

3 Clients should consult with their tax and legal advisors when conducting legacy planning.

4 Hypothetical example assumes a 2-year-old female, nonsmoker rate class. Assumes 5.60% illustrated interest rate and index loans taken at ages shown. Results depicted are based upon current, non-guaranteed rates. Non-guaranteed results may be more or less favorable than those shown. Loans will reduce the death benefit available. If the policy loan balance exceeds the available loan value, the policy will terminate and a taxable event may occur.

Indexed whole life insurance is issued by Ohio National Life Assurance Corporation. Guarantees are based upon the claims-paying ability of the issuer. Policy, policy features and rider availability vary by state. Issuer not licensed to conduct business in NY. ©2022 Ohio National Financial Services, Inc.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. D-828101 8-22