Lump Sum Payments

• Minimum lump sum deposit is $50,000
• Deposit is only payable at issue date
• Additional lump sum are not allowed on the same policy

Life Insurance / Death Benefit

Tax Status

• Tax free investment limit in any one year is $1,000,000 or $5,000,000 over the 1st 5 years
• 75% of the earned interest is available tax free in the 1st 5 years
• After the 1st 5 years 100% of the earned interest is available tax free
• If investment is in excess of $1,000,000 in any one year or $5,000,000 in the 1st 5 years, then all interest earned on the excess will be taxed upon withdrawl or surrender

Interest

• Interest rate applied to the lump sum deposit is initially guaranteed for a 3 month period
• If the policy is not surrendered, the principal and interest are reinvested (roll over) at a new interest rate which is then guaranteed for another 3 month term
• There is no limit as to how often the principal and interest may be reinvested (roll over)

Interest Payment

• 75% of the interest earned can be paid at the end of each roll over period
• Alternately, interest can be allowed to roll over
• Interest can be withdrawn before the roll over date, but it will be subject to a penalty of 50 % of the accrued interest

Surrender Value

• The plan can be surrendered for the accumulated fund on the next roll over date provided that written notification is submitted to the Company within 7 days of the roll date.
• If the plan is surrendered outside of the roll date, a surrender charge of 50% of all interest due since the last roll over date will apply
• For tax exempt policies, if the amount withdrawn within the taxable period (5 years) results in an accumulated fund that is lower than the original deposit, then this will result in a full surrender for which withholding tax is payable.
• For non-tax exempt policies, any withdrawal or policy surrender would be subject to withholding tax
• Where the original investment is surrendered before 5 years, then the applicable withholding tax of 25% will apply