One of the most momentous events on anyone's financial horizon is retirement. It's something you may have
thought about and discussed at length with your spouse. But one thing that may be difficult to think or talk about
is that you may not be around to enjoy the retirement you've worked so hard for. Even with modern medical
advances, none of us can predict how long we'll live. And that raises a critical question: What would happen
to your loved ones if you were to die? Would they have sufficient funds for day-to-day living expenses, as well as
the "extras" to enjoy the retirement lifestyle you had hoped for?
The last thing any of us want is for our loved ones to have to reduce their standard of living. Unfortunately,
that could happen if you do not own enough life insurance to make up for your lost income and future savings in the
event of your premature death. For this reason, protecting your assets for those who may outlive you is vital.
Permanent Protection and Flexibility
There are many products on the market that can help you protect your financial future. However, not all offer the protection
of NYLIAC1 Accumulator® universal life insurance—permanent life insurance with the flexibility you want
and the stability you need.
Permanent insurance does more than just provide valuable death benefit protection for your family. It can also
provide tax-deferred cash value accumulation—a significant "living benefit."
The cash values that accumulate in the policy can be accessed during your lifetime
to fund important needs, such as a child's education or a new home.
NYLIAC Accumulator® is designed to optimize cash value accumulation, while providing the security of a death benefit
that is generally free from federal income tax and is backed by the financial strength of NYLIAC. It can
be an ideal complement to the portfolio of financial products that you've developed to help you prepare for a
comfortable retirement.
Product Highlights
NYLIAC Accumulator® helps protect those who depend on you in several ways:
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It provides valuable death benefit protection, helping to ensure that your loved ones will not need
to sell their assets or change their lifestyle if you die before retirement.
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As a universal life insurance policy, it can help supplement your retirement income by providing you
with ready access to your policy's cash value.2
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NYLIAC Accumulator® offers flexible premium payment arrangements3 and death benefit4 protection that
allow you to adjust the policy to meet your changing needs.
The Power of Tax Deferral
Life insurance is primarily purchased for the death benefit protection it offers. However, another feature of
permanent insurance is its ability to accumulate tax-deferred cash value. With your NYLIAC Accumulator® policy,
you won't have to pay taxes on the interest you earn until you access the cash value. If you don't
need the money until you retire, you may be in a lower tax bracket. That can be a big advantage during your
retirement years.
Over the long term, this tax deferral feature can lead to increased accumulation. Though the interest crediting
rate may vary, it will never drop below the guaranteed minimum stated in your policy. As a result, the combination
of tax deferral and a guaranteed minimum interest rate may allow significant cash values to accumulate
for your future use.2
Access to Your Money
Your policy's accumulated cash value is available to you through either policy loans or partial surrenders. If
you choose to borrow money using the cash value of your policy, we'll charge you interest on the loaned amount.
However, we will continue to credit interest, at a lower rate, on any loaned portion of your cash value. Partial surrenders
do not have to be paid back. However, they may be subject to a surrender charge during the first 19 policy years, reduce
the policy face amount, and be taxable as income.
The Smiths Plan Ahead
At age 45, Mr. and Mrs. Smith have much to be proud of. Mr. Smith runs a successful business and Mrs. Smith
recently returned to the workforce after their youngest daughter went off to college. The Smiths carefully planned for
their children's education. Now they want to prepare for their own future.
To protect against the unexpected, the Smiths purchase a NYLIAC Accumulator® life insurance policy with a face
amount of $500,000. Mr. Smith figures that $500,000 would allow his wife to live out her life comfortably, should he
die before her. He also finds it reassuring that, if needed, the policy's flexible premium schedule would allow him to
decrease their payments if emergencies arise and money becomes tight.3
In twenty years, when Mr. Smith retires at age 65, their NYLIAC Accumulator® policy should serve them well. The
death benefit of $500,000 will still be paid to Mr. Smith's wife when he dies. Or if the Smiths choose, they can name
their children as beneficiaries of the policy. The death benefit would be an inheritance for their children, which
would be generally free of income taxes.
Additionally, as the policy's cash value has accumulated, the Smiths can access their cash value to meet whatever
needs they have. Among the things they can consider:
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Taking partial surrenders2 to help make up for reduced retirement income.
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Using the money to help purchase their dream retirement home.
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Leaving the policy alone. The cash value will continue to accumulate tax-deferred and will be available, if needed.
Customize Your Policy
By adding riders5 to the policy, you can customize your NYLIAC Accumulator® policy in a variety of ways to achieve
your financial goals. For example, the Other Covered Insured (OCI) rider allows you to cover your spouse, your
children, and others—such as a business partner—with term insurance, all under one policy. This term insurance
rider is also available on the primary insured. The Monthly Deduction Waiver (MDW) rider provides additional protection.
If you become disabled and you have this rider on your policy, we will waive the monthly deductions for
Cost of Insurance, riders, and administrative fees.
Use the No Lapse Guarantee Rider (NLGR)6 for 20 years, to age 85 or to age 100, and you'll have the assurance
that if your premium payments are met, your policy will not lapse—even if the cash surrender value is
insufficient to cover your monthly charges. The Life Extension Rider (LER) continues full life insurance benefit
coverage after you have reached the age 100 policy anniversary. Without this rider, after age 100 your life insurance
benefit would equal the cash value of the policy. Both NLGR and LER are only available at issue.
Call your New York Life agent today about NYLIAC Accumulator® universal life insurance. Find out how it can help
you achieve your financial goals and provide for your retirement years.
1New York Life Insurance and Annuity Corporation, a subsidiary of
New York Life Insurance Company.
2Your policy's cash value may be accessed via policy loans and/or
partial surrenders, which will
reduce the death benefit.
3The policy will terminate if at any time the cash surrender
value is insufficient to pay the monthly deductions. This can happen due to insufficient premium payments, if
loans or partial surrenders are made, or if current interest rates or charges fluctuate.
4Subject to certain underwriting requirements.
5Not all riders are available in all jurisdictions, and not all riders
are available on all policy types; some variations may exist.
6Failure to satisfy the Cumulative Required NLGR Monthly Premium
Test will cause the rider and the guarantee to become inactive, and increase the potential that the policy may lapse
for insufficient cash surrender value. At the end of the guarantee period, if only the required premium has been paid,
the policy may lapse for insufficient cash surrender value. See the rider form for more details.
New York Life Insurance Company
New York Life Insurance and Annuity
Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
00311403CV
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