Freedom Federal Educators Issue 1 - Summer 2021 | Page 2

TWO OWNERSHIP OPTIONS
GIFT GIVERS
GIFT RECIPIENTS / POLICY OWNERS

Gift of LIFE INSURANCE

gift | GIFT | noun

defined in the IRS tax code as a transfer of property where nothing is expected in return from the gift

TWO OWNERSHIP OPTIONS

FOR GIVING THE GIFT OF LIFE INSURANCE **
• Lump sum gift to fund several years of policy premiums or
• Annual contribution ( enough to fund one year or first year and subsequent premiums )

BENEFITS

OF PERMANENT LIFE INSURANCE
• Death benefit protection
• Cash value accumulation
• Potential for tax-free growth that may be used for a down payment on a first home , continuing education , starting a business , supplementing retirement income *
• Establish sound financial footing
• Begin a practice of saving and investing
• Get better rates when younger and healthier

ANNUAL GIFTING LIMITS

( maximum amount that can be given to each person without filing a gift tax return )
SINGLE
$ 15,000
COUPLE $ 30,000
GIFT GIVERS
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GIFT RECIPIENTS / POLICY OWNERS
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Mimi and Pop Great Aunt Sally The Graduate Newly marrieds

PRESENTED BY THE PENN MUTUAL LIFE INSURANCE COMPANY

WWW . PENNMUTUAL . COM
* Accessing cash values may result in surrender fees and charges , may require additional premium payments to maintain coverage , and will reduce the death benefit and policy values . Loans and other policy withdrawals may be taxable under certain circumstances . ** Depending upon the amount of the premium ( gift ), gift taxes may be payable . This material is for educational purposes only and should not be viewed as financial , tax , or legal advice ; always consult a qualified professional regarding your personal situation . The amount and structure allowed for gifting life insurance will vary based upon individual circumstances and is subject to underwriting .
PM6827 © 2018 The Penn Mutual Life Insurance Company , Philadelphia , PA 19172 , www . pennmutual . com
02 / 18 1840217PH _ Aug19