Ask questions, find answers
We get it, life insurance can feel complicated. We put our pencils, graphing calculators, and keyboards to work on our most frequently-asked questions. (And maybe a few surprises too...)
Before I Buy
First, if your employer offers a retirement savings plan, you should take advantage of that. Then, it is always a smart idea to diversify your savings. A Universal Life product like Everly Life™ offers protection and a means for saving. With a current interest rate of 4.0%,1 Everly Life helps grow your Account Value.
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1The 4% current interest is guaranteed for the first policy year and subject to change on policy anniversaries thereafter. Guaranteed Minimum Interest Rate is 1%. To learn more about how the interest rate is determined, see What Interest Is Credited To My Account Value.
It’s likely one of the first questions you’ll ask yourself when shopping for life insurance. Any payments you make are added to your Account Value. Only two charges are deducted from your Account Value1:
- Cost of protection: It's what you pay for the protection you want. The amount is very individual and depends on things like your age, health, lifestyle, how much coverage you want, and your payments.
- An admin fee of $8/mo: This monthly charge helps us serve you well.
With Everly Life™, you can adjust your payment up and down.2 Have extra cash? Make the most of your tax-advantaged growth with the 4.0% current interest rate.3 In a tough spot and need to dial things back? That's why Everly Life is flexible.
Play with numbers and get your estimate HERE.
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1To learn more about the fees and charges that apply to Everly Life, see What are Monthly Deductions.
2To learn more about changing your payments, see What Happens If I Need To Change My Payment.
3To learn more about the interest credited under Everly Life, see What Interest is Credited to My Account Value.
Everly Life is life insurance designed to provide you benefits while you are living as well as benefits to those you care about when you pass away. It provides you with the flexibility to adjust to your changing circumstances. Some of the unique features of Everly Life include:
- 4.0% interest rate to keep your money working hard for you1
- Unique Dollar-for-Dollar feature as part of the Critical Illness Benefit “if and when” you need it most2
Online buying process. After you apply, get a decision in seconds.
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1To learn more about the interest credited under Everly Life, see What Interest Is Credited To My Account Value.
2The Critical Illness Accelerated Benefit (AB) includes a Tier 1 AB Amount which is a dollar-for-dollar acceleration of the Death Benefit up to the allowed Tier 1 AB Amount as reduced by the $250 Administrative Charge, the Required Grace Period Payment (if the Policy is in the Grace Period), and a pro-rata repayment of the current Loan Payoff (if a loan balance exists). To learn more about the Accelerated Benefit Rider (ABR), see How Can I Use My Policy If I Get Seriously Sick, What Happens If I Am Diagnosed With A Critical Illness, What Happens If I Am Diagnosed With A Chronic Illness, and What Happens If I Am Diagnosed With A Terminal Illness.
The fees for Everly Life are:1
- A monthly expense charge of $8 -- to serve you well.
- Insurance charges – cost of insurance and monthly unit charge -- to give you the protection you need. These charges are based upon the amount of your insurance protection and your Account Value as well as your health status and other risk factors.
For the riders, there are no charges until you need to use them (if you need to use them at all!)
- Overloan Safeguard Rider: You have access to the Overloan Safeguard Rider. It helps protect policies against a lapse and the tax that may apply. The rider comes automatically with your policy. There is no charge for this rider until you elect to use its benefit.2
- Accelerated Benefit Rider (ABR): If you have a qualifying Critical, Chronic, or Terminal illness Health Event, and access part of your Death Benefit while you are alive, there is a one-time Administrative Charge of $250 deducted from the amount paid to you.3
What fees doesn’t Everly Life have?
- NO sales loads: Typically, products have sales loads. But Everly Life has none! What is a sales load? An amount some insurers charge to cover agent fees, underwriting, and processing.
- NO surrender charge: Typically, products have a surrender charge, but not Everly Life. What is a surrender charge? A fee paid by you if you choose to cancel your policy before a certain number of years.
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1To learn more about the amounts deducted from your Account Value, see What Are Monthly Deductions.
2To learn more about the Overloan Safeguard Rider, see What is the Overloan Safeguard Rider.
3To learn more about the Accelerated Benefits (AB) as well as the rules for and the consequences of taking Accelerated Benefits, see How Can I Use My Policy If I Get Seriously Sick, What Happens If I am Diagnosed with A Critical Illness, What Happens If I am Diagnosed with a Chronic Illness, and What Happens If I am Diagnosed with a Terminal Illness.
People buy Everly Life because they want a product that provides insurance protection plus a tax-advantaged saving option for their financial future:
- Lifetime protection for you and your loved ones, up to age 121.1You can also access part of your Death Benefit early in case of a qualifying Critical, Chronic or Terminal Illness Health Event.2
- 4.0% Current interest rate: Everly Life currently credits 4.0% to your Account Value. You do not pay taxes when the interest is credited on the Account Value. The interest rate is expected to continue to be 4.0% per year. Yet, the interest rate can be changed.3
- Low Fees: The fees for the Everly Life are:4
- A monthly expense charge of $8
- Insurance charges - cost of insurance and monthly unit charge - to give you the protection you need. These charges are based upon the amount of your insurance protection and your account value, as well as your health status and other risk factors.
For the riders, there are no charges until you need to use them (if you need to use them at all!)
- Overloan Safeguard Rider: You have access to the Overloan Safeguard Rider. It helps protect policies against a lapse and the tax that may apply. The rider comes automatically with your policy. There is no charge for this rider unless you elect to use its benefit.5
- Accelerated Benefit Rider (ABR): If you have a qualifying Critical, Chronic, or Terminal Illness Health Event, and access part of your Death Benefit while you are alive, there is a one-time Administrative Charge of $250 deducted from the amount paid to you.6
- Security Benefit Life Insurance Company (SBL) may change these fees at its sole discretion. However, when you purchase your Everly Life the minimum and maximum rates are set and may not change. The rates used to calculate your Monthly Deductions will never be greater than any applicable maximum or less than any applicable minimum.
Easy to apply online and then get a decision in seconds.
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1As long as the Account Surrender Value is sufficient to pay the monthly deductions for the insurance charges and a nominal administrative fee.
2Under the Accelerated Benefit Rider, you can access up to 50% of your Death Benefit, but no more than $500,000 if you have a qualifying Critical, Chronic or Terminal Illness Health Event. To learn more about the Accelerated Benefits, as well as the rules for and the consequences of taking Accelerated Benefits, see How Can I Use My Policy If I Get Seriously Sick,What Happens If I Am Diagnosed With A Critical Illness,What Happens If I Am Diagnosed With A Chronic Illness, andWhat Happens If I Am Diagnosed With A Terminal Illness.
3The interest rate can be changed once a year for the first 10 years on the anniversary of your policy. After that, the interest rate can be changed quarterly. The interest rate is set in Security Benefit's sole discretion.
4To learn more about the amounts deducted from your Account Value, see What Are Monthly Deductions.
5To learn more about the Overloan Safeguard Rider, see What Is The Overloan Safeguard Rider.
6To learn more about the Accelerated Benefit Rider see How Can I Use My Policy If I Get Seriously Sick, What Happens If I Am Diagnosed With A Critical Illness, What Happens If I Am Diagnosed With A Chronic Illness, and What Happens If I Am Diagnosed With A Terminal Illness.
Monthly deductions are the insurance charges and a nominal administrative charge that are taken from your Account Value monthly. It also includes any rider charges that may apply.
The fees for Everly Life are:
- A monthly expense charge of $8 to serve you well.
- Insurance charges – cost of insurance and monthly unit charge – to give you the protection you need. These charges are based upon the amount of your insurance protection and your Account Value as well as your health status and other risk factors.
For the riders, there are no charges until you need to use them (if you need to use them at all!)
- Overloan Safeguard Rider: You have access to the Overloan Safeguard Rider. It helps protect policies against a lapse and the tax that may apply. The rider comes automatically with your policy. There is no charge for this rider unless you elect to use its benefit.1
- Accelerated Benefit Rider (ABR): If you have a qualifying Critical, Chronic, or Terminal Illness Health Event, and access part of your Death Benefit while you are alive, there is a one-time Administrative Charge of $250 that is deducted from the amount paid to you.2
- SBL may change these fees at its sole discretion. However, when you purchase Everly Life, the minimum and maximum rates are set and may not change. The rates used to calculate your Monthly Deductions will never be greater than any applicable maximum or less than any applicable minimum.
For more details
1To learn more about the Overloan Safeguard Rider, see What is the Overloan Safeguard Rider.
2To learn more about the Accelerated Benefits, as well as the rules for and the consequences of taking Accelerated Benefits (AB), see How Can I Use My Policy If I Get Seriously Sick, What Happens If I am Diagnosed with A Critical Illness, What Happens If I am Diagnosed with a Chronic Illness, and What Happens If I am Diagnosed with a Terminal Illness.
Other than the life insurance benefit, one of the biggest benefits of having Everly Life™ is for its tax advantages.
With Everly Life, your Account Value earns tax-advantaged interest. And, even better, you can generally use your Account Value to receive cash tax-free, assuming your policy is not considered a MEC – all while having the life insurance to protect your loved ones. Thus, Everly Life helps you keep more of your money.
The three tax advantages Everly Life offers:
Tax-Advantaged Interest
One of the tax advantages of universal life insurance is that you do not pay tax at the time interest is credited. Thus, you can earn interest on all the interest credited, called compounding. For other non-tax advantaged accounts, interest or realized gains may be taxed in the year earned annually. This is beneficial when you're subject to a higher state and federal tax rate.
Tax-Free Cash
Generally, using your Account Value to receive cash will not be subject to taxes.1 Everly Life provides tax-free options for you. You can use your Account Value by taking cash out up to your total payments tax-free at any time, assuming your policy is not considered a MEC. Plus, you have the option to take a loan from your Account Value for additional cash needs. An important option to you - your loan does not need to be paid back! However, using part of your Account Value to receive cash will generally impact the amount of your life insurance protection and may impact how long your policy remains active.2
Tax-Free Death Benefits
The Death Benefits payable are not taxable.3 And, as long as the Death Benefits are paid to individuals you named as beneficiaries, Everly Life is not considered part of your estate. That said, you should consult with a Tax Advisor.
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1Under Everly Life, you can access your Account Value through withdrawals and loans. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest or the match. If you take a partial withdrawal from the policy before the match vests, the match value will be reduced pro-rata. Accessing your Account Value through loans is tax-free, assuming your policy is not considered a MEC. However, if your policy terminates while there are any loans outstanding, you may be subject to tax. Tax laws are subject to change. You should consult a tax professional. To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2In most cases, withdrawals reduce your coverage amount and loans reduce the amount of Death Benefit proceeds for your beneficiaries.
3Section 101(a)(1) of the Internal Revenue Code provides that life insurance Death Benefits are generally not subject to federal income taxation. Tax laws are subject to change. You should consult a tax professional.
By making the process digital, applying for Everly Life™ is a breeze. In assessing your risk, the digital process leverages your answers to health questions and 3rd party data like your prescriptions, medical history, driving & criminal records. So, in nearly all circumstances, you don’t need to provide blood or other fluids or meet with someone to obtain health information on you. The goal is to get you a quick decision.
A universal life policy has more features than term insurance. It provides life insurance protection like term insurance, but it can last for much longer – up to age 121.1 Many people choose universal life insurance for the Account Value component that earns interest. In addition to the life insurance protection, your Account Value grows when interest is credited.2 You do not pay taxes when the interest is credited on the Account Value. When you need extra cash, you can generally access your Account Value to take cash that is tax-free.3 You can also change your payment patterns and insurance coverage.4
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1As long as the Account Surrender Value is sufficient to pay the monthly deductions for the insurance charges and a nominal administrative fee.
2Each month, the Account Value is reduced by the monthly deductions for the insurance charges and a nominal administrative fee. The monthly deductions may exceed the interest credited. To learn more about monthly deductions see,What Are Monthly Deductions.
3Under Everly Life, you can access your Account Value through withdrawals and loans. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest or the match. If you take a partial withdrawal from the policy before the match vests, the Match Value will be reduced pro-rata. Accessing your Account Value through loans is tax-free, assuming your policy is not considered a MEC. However, if your policy terminates while there are any loans outstanding, you may be subject to tax. Tax laws are subject to change. You should consult a tax professional. To learn more about the rules for taking withdrawals from Everly Life, seeHow Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from EverlyLife, seeWhat Do I Need To Consider When Taking A Withdrawal.To learn more about the rules for taking loans from Everly Life, seeHow Can I Access Cash From My Account Value Through Loans.To learn more about the consequences for taking loans from Everly Life, seeWhat Do I Need To Consider When Taking A Loan From My Policy.
4Under Everly Life, you can skip a planned payment, make extra payments, or change the amount and frequency of your planned payments. Skipping a payment may impact how long your policy remains active. To learn more about the rules for making an extra payment or changing your planned premiums for your Everly Life, seeWhat Happens If I Need To Change My PaymentandIs There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Not yet married? Kids not in your immediate future? You may think you don’t need life insurance yet but it actually may be to your advantage to buy it today. Why? Generally, the younger and healthier you are when you initially purchase life insurance, the less expensive it is and the easier it is to qualify for it. Each year that you wait to purchase life insurance, your rates will typically increase. And if you develop any health issues in the future, it may impact your ability to get life insurance, regardless of your age.
Universal life insurance provides life insurance protection, and it has a tax-advantaged Account Value component.
- Life insurance protection: You select the amount of insurance protection you want on your life. You may be able to change the amount of insurance protection to adjust with changes in your life.
- Account Value component: All or part of your payments are applied to the policy’s value, sometimes called the “Account Value,” which is used to pay for the insurance charges and other fees of the Universal Life policy. The remainder is credited with interest. You do not pay taxes when the interest is credited on the Account Value. The Account Value increases with your payments and with interest on the Account Value.
- Payment: After the first payment, you can choose how often to make payments (monthly, quarterly, annually) and how much to pay. The minimum amount you must pay to keep the policy in force is based upon the insurance charges and other fees of the Universal Life policy. The maximum amount is set by the IRS.
- Interest: The insurance company that issues the Universal Life policy sets the interest that is credited to the Account Value or Policy Value.
As a type of permanent insurance, Universal Life insurance is designed to provide insurance protection for up to age 95, 101, or 121 so long as there is sufficient policy value to pay the policy charges and fees. This means the Death Benefit may last longer than typical 10, 20 and 30-year term life contracts.
Other than the life insurance benefit, one of the biggest benefits of Universal Life insurance is that you can earn tax-advantaged interest on money you put into your Account Value. Plus, you can access that money (your Account Value) through withdrawals and loans – generally, penalty and income tax-free.
- You can generally take cash from your Account Value tax-free, either as withdrawals of the total payments paid-to-date or as loans as long as the policy is not a MEC. You are not required to pay the loans back. Taking withdrawals, and taking loans and not repaying them, will reduce the amount of Death Benefits for those you name as beneficiaries. Also, the lapse of the policy while any loans are outstanding will result in taxes based on the loans taken and the interest on the loans.
Everly has partnered with Security Benefit, an industry leader with $45.5 billion in assets under management (as of 12.31.20) and over 129 years of experience helping people achieve financial security. Life insurance products offered through Everly are issued by Security Benefit Life Insurance Company.
Universal Life and Whole Life are types of permanent insurance that can provide insurance protection for your entire lifetime up to age 95, 100 or 120, if the required payments are met. Universal Life gives you more flexibility than Whole Life.
- For Whole Life, you select at the time of purchase the life insurance protection you want. The payment is set based on the insurance protection you want and is generally not flexible. The payment amount must be paid when it is due for the entire term of the whole life policy. If the payment is not made, the policy may lapse. Also, the Whole Life insurance protection may not be changed.
- Like Whole Life, at the time you purchase Universal Life, you select the life insurance protection you want. You also select the payment amount and the frequency. If your situation changes, you can make certain changes to the life insurance protection, payment amount, and frequency. You can even stop making payments. But, if you do so, it is likely to impact how long the life insurance protection lasts.
Employer-provided policies often offer, at no cost to you, one to two (or sometimes even three) times your annual salary—and that’s a great start. The problem is this coverage is only lasts while you’re employed with the company, which puts you at risk if you change or lose your job. An individual Universal Life insurance policy is yours to keep no matter what your circumstances. Also, a Universal Life insurance policy couples the protection you need with the Account Value which earns interest and is another source for your cash needs.
Everly is a life insurance agency that's helping people use the financial insurance system to live a better life. Its solutions are transparent, flexible and put you in control.
Unfortunately, not at this time.
It’s a good idea to take advantage of employer-provided life insurance. Many employers offer an amount equal to 1-2 times your annual salary at no cost.
If you have a family, would that amount provide enough money to help them maintain their lifestyle, meet their expenses, and achieve all of the dreams you have for them? Probably not. Additionally, employer-provided insurance is not portable, which means you can’t take the policy with you if you decide to leave that job or are terminated.
Universal Life insurance provides life insurance protection and it has a tax-advantaged Account Value component. Universal life insurance is often referred to as a type of “permanent” life insurance because it may last the insured’s entire life. Under a Universal Life policy, after the first payment, you can choose how often to make payments and how much to pay—it allows for flexible payments. A Universal Life policy also allows you to adjust the life insurance protection. Thus, it can adjust with the changes in your life.
Building Account Value
Initially, interest is credited at a rate of 4.0% per year.² The projected interest rate will continue to be 4.0% per year. The interest rate can be changed once a year for the first 10 years on the anniversary of your policy. After that, the interest rate can be changed quarterly. The interest rate is set at Security Benefit's sole discretion. The rate is set depending on the interest rate environment. That said, the guaranteed interest rate will always be at least 1%.²
Your Account Value has the potential for growth through an interest rate that is guaranteed for one year. The rate may be reset annually for the first 10 years, then quarterly after that. The current interest rate is 4.0% and Everly Life™ guarantees you’ll never earn less than 1% annually.² Your Account Value earns tax-advantaged interest, and most people can access those funds through withdrawals and loans – generally, penalty and income tax-free.
Initially, interest is credited at a rate of 4.0% per year. The projected interest rate will continue to be 4.0% per year. However, the interest rate may change on each anniversary of your policy. The rate is set depending on the interest rate environment. That said, the guaranteed interest rate will always be at least 1%.1
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1The 4% current interest is guaranteed for the first policy year and subject to change on policy anniversaries thereafter. Guaranteed Minimum Interest Rate is 1%.The interest rate is set in Security Benefit's sole discretion.
The 4% current interest is guaranteed for the first policy year and subject to change on policy anniversaries thereafter. Guaranteed Minimum Interest Rate is 1%.²
Everly Life™ gives you control over your payments with the flexibility to adjust your payments as you need or want. When you apply for Everly Life, you select the amount of the first payment and how much and how often (monthly, quarterly, annually) to make subsequent payments. While you own your Everly Life plan, you can adjust your payments up, and you can also choose to make additional lump-sum payments, subject to some rules.1
- Increasing or making additional payments increases your Account Value and allows you to earn more tax-advantaged interest. Just be careful, if at any point you pay too much into your policy, it will become a Modified Endowment Contract (MEC). Once your policy becomes a MEC, it will always remain a MEC.2
- You can adjust your payments down or skip a payment. Remember, that by decreasing your payment, you will not have as much in your Account Value. So, the amount of interest you can earn on your Account Value will decrease. Adjusting your payments down also may impact how long your Everly Life plan remains active.
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1You can make additional payments if the payment (i) is at least $1, (ii) does not increase the net amount of risk, and (iii) will not cause your Everly Life to fail to qualify as life insurance.
2If your policy becomes a MEC, it will impact whether you can take cash from your Everly Life tax-free. For more information see, Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Everly Life™ offers the flexibility to add money in addition to your regular planned payments within limits. Perhaps you recently got a bonus at work or received an inheritance. Increase your ongoing planned payments or make an additional one-time payment. Fast forward to retirement, that extra money you put into the policy may come in handy because you can use Everly Life to supplement your retirement income through withdrawals and loans, which are generally free of any income tax or early withdrawal penalties.
Everly Life™ gives you control over your payments with the flexibility to adjust your payments as you need or want. When you apply for Everly Life, you select the amount of the first payment and how much and how often (monthly, quarterly, annually) to make subsequent payments. While you own your Everly Life plan, you can adjust your payments up, and you can also choose to make additional lump-sum payments, subject to some rules.1
- Increasing or making additional payments increases your Account Value and allows you to earn more tax-advantaged interest. Just be careful, if at any point you pay too much into your policy, it will become a Modified Endowment Contract (MEC). Once your policy becomes a MEC, it will always remain a MEC.2
You can adjust your payments down or skip a payment. Remember that, by decreasing your payment, you will not have as much in your Account Value. So, the amount of interest you can earn on your Account Value will decrease. Adjusting your payments down also may impact how long your Everly Life plan remains active.
For more details
1You can make additional payments if the payment (i) is at least $1, (ii) does not increase the net amount of risk, and (iii) will not cause your Everly Life to fail to qualify as life insurance.
2If your policy becomes a MEC, it will impact whether you can take cash from your Everly Life tax-free. For more information see, Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Everly Life™ offers the flexibility to adjust the amount or frequency of your payments. Short on cash right now? Decrease your planned payments. Your policy will remain in force as long as your Account Value covers your monthly deductions or the lapse protection guarantee applies. Conversely, Everly Life also lets you increase your planned payments once you are back on your feet.
In addition to the life insurance protection, an important benefit of Everly Life™ is its savings feature through the Account Value. When you need extra cash, you can generally use your Account Value to take income that is tax-free.1
Your Account Value increases from two sources:
- Your payments to your policy
- The credited interest on your Account Value
Friendly reminder: Your Insurance charges and a nominal administrative charge are taken from your Account Value monthly.2
For more details
1Under Everly Life, you can access your Account Value through withdrawals and loans. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest. Accessing your Account Value through loans is tax-free, assuming your policy is not considered a MEC. However, if your policy terminates while there are any loans outstanding, you may be subject to tax. Tax laws are subject to change. You should consult a tax professional. To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2To learn more about the amounts deducted from your Account Value, see What Are Monthly Deductions.
Someday, you may decide you want more life insurance coverage. Whether you have a growing family, buy a new home, or just want to ensure your loved ones can maintain their quality of life, Everly Life™ lets you increase your coverage amount.
After you own your policy, you can increase your Everly Life coverage amount at any time (so long as your health has not changed and the coverage amount does not exceed $1M). Your payments may also need to increase, depending on how much you increase the coverage amount.
Everly Life™ is built to be flexible. You can set or change the amount, frequency, and how long you want to pay into the policy.
Life happens, so Everly Life™ has put measures in place to help prevent your policy from terminating.* However, in the event you let your policy terminate, your insurance protection will end. If your policy terminates because you’ve chosen to surrender your policy, you will receive the Account Surrender Value. The Account Surrender Value is the Account Value less the amount required to pay off all loans and any interest owed on the loans.1
For more details
1To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
There may be a time when you decide you don’t need as much life insurance coverage as you currently own. Maybe you’ve paid off your mortgage or your children are grown and on their own. Everly Life™ offers the flexibility to lower your coverage amount as your insurance needs decrease.
Great question! As a type of permanent life insurance, Everly Life™ allows you to control how much you pay into your policy. Increasing or making additional payments allows you to earn more tax-advantaged interest, similar to a 401K. Like a 401K, there’s a limit on how much you can put in. However, unlike a 401k that has a set limit for everyone, the max amount you can pay into your Everly Life plan is determined by factors like your coverage amount, age, gender and health status. Play with different protection and savings payments to see estimated impact on the Account Value HERE.
If you exceed the maximum allowed by the tax code, your policy will turn into a Modified Endowment Contract (MEC), which may impact your ability to take tax-free withdrawals from the policy. Once your policy becomes a MEC, it will always remain one. The good news is we have measures in place to notify you if your policy is getting close to becoming a MEC.1
For more details
1To learn more about making additional payments and MEC status see, Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Individual policy rates can only change annually. And remember, the 1% guarantee will never change.
There are a few ways to monitor and keep track of your Account Value:
- Access your Account Value by logging into your online account, and;
- In your annual statement that is sent for each policy anniversary. This important document will show how your Account Value changed during the report period due to payments received, interest credited, and the monthly deductions.1 If you take any withdrawals or loans, the annual statement will show all related activity.
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1To learn more about the amounts deducted from your Account Value, see What Are Monthly Deductions.
No, Security Benefit invests the assets so it can provide market leading interest rates.
Yes, you can sign into your online account and access all policy documents, monitor your policy, and make or change your payments.
You can sign into your online account and download a free copy of your documents.
Yes, tax laws set a maximum payment to qualify for tax benefits of life insurance. If this maximum is exceeded, the Death Benefits will be taxable. Tax laws also set another limit on how much can be paid in before a policy becomes a “Modified Endowment Contract” (MEC). If this maximum is exceeded, withdrawals and loans will be treated as taking the interest credited to the policy first, and these withdrawals will be taxable. In addition, in general, if the Policy is a MEC and you take money out before age 59 ½, you will be subject to a 10% tax penalty.
If you make a payment that will cause your policy to become a MEC, you will be notified and asked whether you want your policy to become a MEC.
When you apply for the policy, you will be asked to pay the first payment digitally from your checking or savings account. At that time, you can also set up digital payments for subsequent automatic payments or additional payments. You’ll need your account and routing information.
If you need to make any changes to how your payments are made, simply log into your account. You can change your automatic payments, make an additional payment, or change your checking or savings account. You’ll need your account and routing information.
Generally, anyone can make payments on your behalf. However, if you aren’t making the payments, checking that the payments are not part of an illegal scheme may be required by law.
As long as you have built up enough Account Value to cover your monthly deductions,1 there’s nothing to worry about! You can skip a payment,2 make a double payment later3 or anything in-between.
If your Account Value is not sufficient to cover the monthly deductions, your policy will enter a Grace Period during which you must make a payment sufficient to keep the policy alive. If this payment is not paid by the end of the Grace Period, your policy will lapse and terminate without value.4
For more details
1To learn more about monthly deductions, see What Are Monthly Deductions.
2Remember that, by decreasing your payment, you will not have as much in your Account Value, so the amount of interest you can earn on your Account Value will decrease. Adjusting your payments down also may impact how long your Everly Life remains active.
3To learn more about making additional payments see, Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
4To learn more about the Grace Period and the payment required to keep the policy alive, see What Is The Grace Period and the Required Grace Period Payment.
Yes, you can adjust your payment up or down.
You can adjust your monthly payment up, and you can also choose to make additional lump-sum payments, subject to some rules.1 This will increase the interest that will be credited to your Account Value. Just be careful, if at any point you pay too much money into your policy, it will become a Modified Endowment Contract (MEC). Once your policy becomes a MEC, it will always remain a MEC.2
You can also adjust your monthly payments down or skip a payment. Remember that your monthly payment increases your Account Value, so adjusting your payment down will reduce the amount of interest you can earn on your Account Value. Adjusting your payments down may also impact how long your Everly Life remains active.
For more details
1You can make additional payments if the payment (i) is at least $1, (ii) does not increase the net amount of risk, and (iii) will not cause your Everly Life to fail to qualify as life insurance.
2If your policy becomes a MEC, it will impact whether you can take cash from your Everly Life tax-free. For more information see, Is There A Limit On How Much Money (payments) I Can Put Into The Policy.
The IRS has a Life Insurance tax qualification called a Modified Endowment Contract, also referred to as a MEC. It occurs when cumulative payments exceed federal tax law limits in order to maintain the tax advantages. If your policy becomes a MEC, you lose the full tax treatment of your account value in your life insurance policy.
This is any amount paid into the policy by the policy holder. This excludes a loan repayment! Note that if a payment is made and intended to go towards a loan repayment, this must be stated when it is repaid. Otherwise, the payment will be considered a normal payment to the policy.
You can choose to decrease your coverage amount subject to some rules.1 If you decrease your coverage amount, you may need to take a withdrawal from your Account Value.
You can also choose to increase your coverage amount subject to some rules, including the requirement that you must be in the same health as when you purchased the policy.2 You may need to provide new health information to confirm your health status. If you increase your coverage amount, you may also need to change your payments to keep the policy active.
Changing your coverage amount will change the insurance charges for your Everly Life policy and may change your cost of insurance rate and monthly unit charge that applies. Additionally, changing your coverage amount will change the Lapse Protection Guarantee Payment.3
For more details
1The most important rules for decreasing the coverage amount are: You can decrease the coverage amount (i) one year after your Everly Life’s policy date, (ii) as long as the decrease is at least $10,000, (iii) after the decrease, the coverage amount is at least $50,000, and (iv) the decrease does not require current or future withdrawals to maintain the policy's qualification as life insurance under the law.
2The most important rules for increasing the coverage amount are: You can increase the coverage amount (i) one year after your Everly Life’s policy date, (ii) until you reach age 51, (iii) as long as the increase is at least $10,000, and (iv) after the increase, the coverage amount does not exceed $1,000,000.
3To learn more about the Lapse Protection Guarantee, see What is the Lapse Protection Guarantee.
Yes, you can decrease or increase your coverage amount.
You can choose to decrease your coverage amount subject to some rules.1 If you decrease your coverage amount, you may need to take a withdrawal from your Account Value.
You can also choose to increase your coverage amount subject to some rules, including the requirement that you must be in the same health as when you purchased the policy. You may need to provide new health information to confirm your health status.2 If you increase your coverage amount, you may also need to change your payments to keep the policy active.
Changing the coverage amount will change the insurance charges for your Everly Life and may change the Lapse Protection Guarantee Payment.3
For more details
1The most important rules for decreasing the coverage amount are: You can decrease the coverage amount (i) one year after your Everly Life’s policy date, (ii) as long as the decrease is at least $10,000, (iii) after the decrease, the coverage amount is at least $50,000, and (iv) the decrease does not require current or future withdrawals to maintain the policy's qualification as life insurance under the law.
2The most important rules for increasing the coverage amount are: You can increase the coverage amount (i) one year after your Everly Life’s policy date, (ii) until you reach age 51, (iii) as long as the increase is at least $10,000, and (iv) after the increase, the coverage amount does not exceed $1,000,000.
3To learn more about the Lapse Protection Guarantee, see What Is The Lapse Protection Guarantee.
Your Account Value increases from two sources:
1. Your payments to your policy
2. The credited interest on your Account Value
Friendly reminder: Your insurance charges and a nominal administrative charge are taken from your Account Value monthly.1
For more details
1To learn more about the amounts deducted from your Account Value, see What Are Monthly Deductions.
You control the amount and timing of your payments. When you apply for the policy, you determine the payment amounts and frequency. You can change your payments subject to certain rules.1
You may want to change your payments if:
- You increase or decrease your insurance protection coverage amount.
- You want to start accessing your Account Value through withdrawals or loans.
Please note: If you want to repay a loan from your policy, you must specify that the amount paid is for the loan repayment. Otherwise, it will be treated as a payment that is added to your Account Value.
For more details
1To learn more about changing your payments, see What Happens If I Need To Change My Payment.
Accessing Money
Money can be withdrawn from an active policy at any time.*
- The minimum withdrawal is $500.
- Maximum withdrawal is 99% of your Account Value minus any Loans and interest.
- Minimum coverage amount after the withdrawal is $10,000.
You can request a withdrawal by contacting the CEC at 855.290.0529.
*Withdrawing money from your policy may impact the coverage amount. You may contact the CEC to understand any impacts withdrawals may have on your policy. Or, refer to your policy for more information.
For more details
1To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
Loans are one way to use your Account Value to get cash. Unlike a bank loan or credit card, policy loans don’t require an approval process or credit check since you’re essentially borrowing from yourself. And, they will not impact your credit score. You can use your Account Value to take a loan for anything.1
Things to be aware of when considering taking a loan:
You are charged interest on the amount of the loan. Currently, the interest charged is 3.75%. The rate can change each anniversary of your purchase, but it will never be more than 8%.2 If you don't pay the loan interest, it becomes part of the loan. Even though you took a loan, your Account Value will continue to earn interest, currently at 4.0%. The Account Value related to the loan will earn less interest than the rest of your Account Value.
If you choose to pay back your loan, you pay back the amount borrowed plus the interest charged on the loan.
If you choose not to repay your loan, your policy’s Death Benefit will be reduced by the amount borrowed plus the interest charged on the loan. Please be aware, if you choose not to repay your loan and the policy lapses, you may be subject to tax. Please consult your tax advisor when the time is right.
JUST IN CASE: OVERLOAN SAFEGUARD RIDER
You have access to the Overloan Safeguard Rider. It helps protect policies against a lapse and the tax that may apply. The rider comes automatically with your policy.
This benefit is available once you have owned your policy at least 15 years and when you are at least 75.3 There is no charge for this rider until you elect to use its benefit. If you elect to use this rider, there is a one-time fee. It is equal to your Account Value multiplied by 5%. If you elect to use this rider, your Death Benefit will change, and the Accelerated Benefit Rider (ABR) will terminate.
For more details
1To learn more about the rules for taking loans from Everly Life™, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2The loan charge rate can be changed once a year for the first 10 years on the anniversary of your policy. After that, the loan charge rate can be changed quarterly. The loan charge rate is set in Security Benefit's sole discretion.
3To learn more about the Overloan Safeguard Rider, see What Is The Overloan Safeguard Rider.
During the first 20 years of your policy, under the Lapse Protection Guarantee (as long as you have paid the required Lapse Protection Guarantee payment), your policy will not terminate even if the Account Surrender Value is insufficient to pay the monthly deductions. At the end of the first 20 years, if your Account Surrender Value is not enough to pay the monthly deductions, your Everly Life™ will enter the Grace Period.1 If you change the coverage amount for your policy, including due to a withdrawal, the required Lapse Protection Guarantee payment will change. The Lapse Protection Guarantee will continue to apply for the first 20 years of your policy. Without the Lapse Protection Guarantee, if the Account Surrender Value is insufficient to pay the monthly deductions for the insurance charges and administrative charge, your policy will terminate.2
How much do I have to Pay to Keep My Policy Alive?
The required Lapse Protection Guarantee payment is the Lapse Protection Guarantee payment for each month since the policy start date, plus all withdrawals, plus the amount required to pay off all loans and any interest owed on the loans.3
For more details
1To learn more about the Grace Period and the payment required to keep the policy alive, see What is the Grace Period and the Required Grace Period Payment.
2To learn more about the monthly deductions, see What are Monthly Deductions.
3To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
You can take money out of Everly Life™ using withdrawals and loans. Take out one large amount or set up an ongoing income stream, depending on your needs. The funds you take from your Everly Life policy are generally free of any income tax or early withdrawal penalties.
Everly Life also includes an Overloan Safeguard Rider to help prevent the policy from lapsing and triggering a taxable event because of a Loan in states where available.
Generally, there are two ways to use your Account Value to get cash from Everly Life™ free of income tax or early withdrawal penalties – withdrawals and loans.1 Monies are available in one large amount or as an income stream, depending on your needs. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Keep in mind, total payments are all the amounts you paid into the policy and do not include interest. You can also take a loan from your Account Value tax-free, assuming your policy is not considered a MEC.
A few things to keep in mind…Using part of your Account Value to receive cash will generally impact the coverage amount and may impact how long your policy remains in force. Also, if your policy terminates while there is a loan outstanding, you may be subject to tax. Everly Life also includes an Overloan Safeguard Rider to help prevent the policy from lapsing and triggering a taxable event because of a large loan balance. You should consult with your tax advisor to determine the tax treatment of any withdrawals or loans from your policy.
For more details
1To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Already concerned about how expensive college may be in the future?
Everly Life lets you easily access your Account Value whenever you need it, like helping to pay for college. Easily access your money, generally penalty and income tax-free, through withdrawals and loans.
And, unlike some college funding vehicles, you are not penalized if you don’t use the money for educational expenses.
Do you have a mortgage, car loan, or credit card debt?
These debts don’t die with you. Your assets will be used to pay them off, leaving your family with less than you’d intended.
If you name your family as beneficiaries, the income tax-free Death Benefit from your Everly Life policy can help pay off that outstanding debt so your loved ones don't have to worry about it.
Many of us watched friends and family members retire during The Great Recession and have no choice but to withdraw funds from their retirement accounts at the worst time. Using Everly Life™ as a retirement hedge can help you avoid a similar outcome.
With Everly Life, you can create a retirement income stream through policy withdrawals and loans that is not tied to market performance. And, by tapping your Everly Life Account Value as an income source, you can give your retirement accounts that are tied to market performance the time to grow again if markets are down when you retire.
Want to retire at 50, 55, or 60? Use the tax-advantaged interest in your Everly Life™ Account Value to build up a “nest egg.” When you’re ready, you can take withdrawals and loans from Everly Life to create an income stream generally penalty and income tax-free and leave your taxable retirement plans to continue growing until you’re older.
Hint: Want your nest egg to grow faster? Within limits you can increase your Everly Life payments you plan to make — or even add additional money, like if you receive a bonus or inheritance.
There are times in life when you might need access to additional money, like if you lose your job. Everly Life™ lets you take money from your Account Value, through withdrawals and loans, no questions asked. You can generally access those funds free of any income tax or early withdrawal penalties.
Loans are one way to use your Account Value to get cash. Unlike a bank loan or credit card, policy loans don’t require an approval process or credit check since you’re essentially borrowing from yourself. And, they will not impact your credit score. You can use your Account Value to take a loan for anything.1
Things to be aware of when considering taking a loan:
- You are charged interest on the amount of the Loan. Currently, the interest charged is 3.75%. The interest rate charged can be changed once a year for the first 10 years on the anniversary of your policy. After that, it can be changed quarterly. The interest rate charged is set at Security Benefit's sole discretion, but it will never be more than 8%.
- If you don't pay the loan interest when it is due, it becomes part of the Loan.
- Even though you took a Loan, your Account Value related to the Loan will continue to earn interest at 4.0%. The Account Value related to the Loan will earn less interest than the rest of your Account Value.
- If you choose to pay back your Loans, you pay back the amount borrowed plus the interest charged on the Loan. Any Loan repayment must be at least $100.
undefined - If the amount to pay back your Loan plus interest exceeds the Account Value, your Everly Life™ will enter the Grace Period.2
- If you choose not to repay your loans, your policy’s Death Benefit will be reduced by the amount borrowed plus the interest charged on the Loan.
Please be aware, if you choose not to repay your loans and the policy lapses, you may be subject to tax based on the amount of the loans taken and the interest on the loans. Please consult your tax advisor when the time is right.
For more details
1To learn more about the rules for taking a Loan, see How Can I Access Cash from My Account Value Though Loans.
2To learn more about the Grace Period and the payment required to keep the policy alive, see What is the Grace Period and the Required Grace Period Payment.
If your total Account Value is greater than the total payments, taxes may apply on any amount of growth that was due to interest accumulation. Due to state-specific tax laws that may apply, we suggest you talk to your tax advisor.
Hitting contribution limits or income caps with your retirement savings plans?
Your Everly Life Account Value earns tax-advantaged interest. Plus, you can access those funds through withdrawals and loans – generally, penalty and income tax-free – as a flexible income stream when you retire.
Bonus: Having this additional source of retirement income could allow you to hold off on electing Social Security so that down the line you may receive greater Social Security.
If you cancel your policy you receive your Account Surrender Value. (Account Value minus any outstanding loans and interest.)
Undertaking a big home remodel? Maybe buying a beach house or going on sabbatical?
With Everly Life, you can easily access the money from your Account Value, no questions asked, through withdrawals and loans. And, you can access those funds generally penalty and income tax-free ─ to help put those big plans within reach.
Yes. If you wish to withdraw all of your Account Value, the amount you receive equals the Account Value minus your outstanding loans plus interest. At that point, the insurance coverage will terminate.
In order for your policy to remain active, the Account Surrender Value must be able to pay the monthly deductions for the insurance charges and administrative charge.1 If on a monthly anniversary of your policy issue date, the Account Surrender Value is insufficient to pay the monthly deductions, your policy will enter the Grace Period during which you must make a payment to keep your policy alive. If you do not make a sufficient payment by the end of the Grace Period, your policy will terminate. No Grace Period applies to the first payment.
How Long do I have to Make the Payment to Keep My Policy Alive?
You have until the end of the Grace Period to make the payment to keep your policy alive. You will be sent a notice that your Everly Life has entered the Grace Period at least 30 days before the end of the Grace Period. However, the Grace Period will always be at least 60 days.
How much do I have to Pay to Keep My Policy Alive?
The Grace Period notice will tell you what minimum payment you must make to keep your policy alive. The minimum payment is the lesser of: (i) the amount of any negative Account Value plus three months of monthly deductions,2 (ii) the amount to keep the Lapse Protection Guarantee in effect for three months after the Grace Period, or, if shorter, the remaining Lapse Protection Guarantee period,3 or (iii) the amount required by the Overloan Safeguard Rider.4
For more details
1To learn more about the monthly deductions, see What are Monthly Deductions.
2To learn more about the monthly deductions, see What are Monthly Deductions.
3To learn more about the Lapse Protection Guarantee, see What is the Lapse Protection Guarantee.
4To learn more about the Overloan Safeguard Rider, see What is the Overloan Safeguard Rider.
You can request to take a loan from your Account Value1 after you have had the policy for at least 31 days. Loans are tax-free to the extent the policy is not considered a "Modified Endowment Contract" (MEC). You can request a loan by logging into your account and completing a loan request.
Please note that the maximum loan you can take is your Account Value minus the amount of any existing loans and any interest charged on the loans.
For more details
1To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Using part of your Account Value to receive cash either through a loan1 or withdrawal2 will generally impact the amount of your life insurance protection and may impact how long your policy remains active. If you choose not to repay your loan, the amount payable on your death will be reduced by the outstanding amount of the loan, which will include any unpaid interest charged.
For more details
1To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
Impact on coverage amount:
- A withdrawal will not decrease the Coverage Amount if the withdrawal is taken by age 55 and the withdrawal does not exceed 25% of the Account Surrender Value at the start of the Policy Year.
- If a withdrawal is taken after age 55, the coverage amount will be decreased by the amount of the withdrawal.
- If a withdrawal is taken by age 55, but the withdrawal is for more than 25% of the Account Surrender Value at the start of the Policy Year, the coverage amount will be decreased by the excess amount.
- The Lapse Protection Guarantee Payment may decrease, but the Lapse Protection Guarantee Period will not change.1
- Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest. Withdrawals above that amount will be taxed.
- If your Everly Life becomes a MEC, withdrawals will be treated as taking the interest credited to the policy first, and these withdrawals will be taxable.2 In addition, if you are younger than 59 ½ when you take any withdrawals, a 10% tax penalty may apply.
For more details
1To learn more about the Lapse Protection Guarantee, see What is the Lapse Protection Guarantee.
2To learn more about MEC status, see Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Yes! You can choose to use your Account Value the way you want. Many people choose to use their Account Value to supplement retirement or even take early retirement. Others use it to help pay for their children’s education. There are two ways to access your Account Value to get cash: withdrawals and loans. You can generally structure your payouts so that they are tax-free, assuming the policy is not considered a MEC.
- Withdrawals1: Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest. Withdrawals above that amount will be taxed.
- Loans1: You can take a loan from your Account Value tax-free, assuming the policy is not considered a MEC. However, if your policy terminates while there is a loan outstanding, you may be subject to tax.
- A few things to keep in mind when taking withdrawals and loans:
- Using part of your Account Value to receive cash will generally impact the coverage amount and may impact how long your policy remains active.
- You need to carefully consider how to structure your payout, as withdrawals or loans are based on your individual tax situation. Please consult your tax advisor when the time is right.
For more details
1To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash from My Account Value through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
You can choose to use your Account Value the way you want. Many people choose to use their Account Value to supplement retirement or even take early retirement. Others use it to help pay for their children’s education. Whatever your choice, it is important to remember that using part of your Account Value to receive cash will generally impact the amount of your life insurance protection and may impact how long your policy remains active. Also, you will need to structure the payouts in a way that best suits your tax situation.1 Please consult your tax advisor when the time is right.
For more details
1Under Everly Life, you can access your Account Value through withdrawals and loans. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest or the match. If you take a partial withdrawal from the policy before the match vests, the Match Value will be reduced pro-rata. Accessing your Account Value through loans is tax-free, assuming your policy is not considered a MEC. However, if your policy terminates while there are any loans outstanding, you may be subject to tax. Tax laws are subject to change. You should consult a tax professional. To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Did you know it’s not uncommon for a lender to demand full payment of a private student loan when a co-signer dies?
If you cosigned a loan with your parents and died while the loan is outstanding, if you name them as beneficiaries, they can receive all or part of your Everly Life policy Death Benefit income tax-free to help them pay it off immediately.
The same applies to credit card debt or personal loans. Co-signers, joint account holders, and spouses in community property states can become responsible for paying off the debt.
In Case of an Emergency
The Chronic Illness Accelerated Benefit allows you to accelerate part of your Death Benefit if you are diagnosed and cannot perform certain Activities of Daily Living or need Substantial Supervision in states where available.
Chronic Illness Health Events:
You are unable to perform, without Substantial Assistance from another person, at least two Activities of Daily Living (ADLs) for a period of at least 90 consecutive days due to a loss of functional capacity; or
- Require Substantial Supervision to protect yourself from threats to health and safety due to Severe Cognitive Impairment.
- You will need to provide proof from a qualified doctor.
What are Activities of Daily Living (ADLs)?
ADLs are basic activities performed in everyday life, including: Bathing, Dressing, Toileting, Transferring, Continence, and Eating.
What is Substantial Assistance?
Substantial Assistance is either actual physical assistance from another person (Hands-On Assistance) or the presence of another person that can provide physical assistance if necessary (Standby Assistance).
What is Substantial Supervision?
Substantial Supervision is continual supervision by another person needed to protect an individual’s health and safety. It may include cuing by verbal prompting, gestures, or other demonstrations.
What is Severe Cognitive Impairment?
Severe Cognitive Impairment is a loss or deterioration in intellectual capacity that is comparable to (and includes) Alzheimer’s disease and similar forms of irreversible dementia.
How Much is the Accelerated Benefit (AB) Amount?
If you have a Chronic Illness Health Event, you may request to accelerate the Death Benefit up to the lesser of:
- 50% of the Death Benefit, and
- $500,000.
The Chronic Illness Accelerated Benefit (AB) Amount will be based on the Death Benefit accelerated and the monthly deductions with respect to the Death Benefit accelerated that are discounted based upon a determination of your future expected life span taking into account your Account Value and Account Surrender Value. The amount you receive will be reduced by the Required Grace Period Payment (if the Policy is in the Grace Period), a pro-rata repayment of the current Loan Payoff (if a loan balance exists), and an Administrative Charge of up to $250 assessed when the benefits are elected. The AB Amount you receive will be less than the amount of Death Benefit you elect to accelerate because it is being paid prior to your actual time of death. It will also be less than the decrease in the Coverage Amount. Under certain circumstances where your life span or the determination of your expected future life span is not significantly changed by a Chronic Illness Heath Event, the Chronic Illness AB Amount may be zero.
How do I receive the Accelerated Benefit?
You can choose to receive your Chronic Illness Accelerated Benefit in one lump-sum payment or in periodic payments. If you choose the periodic payment option, the Chronic Illness Accelerated Benefit will be divided into equal payments over the requested period. Proof of your continuing Chronic Illness Health Event must be provided every 12 months to continue receiving your periodic payment. You should consult your tax advisor to help you determine the best option for you.
It is important to understand how these features work as they do impact your Death Benefit.
Is the Benefit Taxable?
Depending on your annual per diem amount, age, or the severity of the condition, there may be tax implications associated with the benefit. You should consult your tax advisor to help you determine the best option for you.
Is this a replacement for Long Term Care?
No, it’s not a replacement for long-term care benefits. The amount available is based on your Death Benefit, the seriousness of your condition, and your age. It is not based on whether you are receiving long-term care treatment and is not paid to any long-term care treatment provider. Payments received under the Chronic Illness Accelerated Benefit are not part of a health, long-term care, or nursing home insurance policy and may not be sufficient to cover medical, nursing home, or other expenses.
Everly Life may automatically include:
The Accelerated Benefit Rider (ABR) allows you to access part of your Death Benefit (ADB) if you have a qualifying Critical, Chronic, or Terminal Illness Health Event.1
The Overloan Safeguard Rider helps prevent the policy from lapsing and triggering a taxable event because of a large loan balance.2
Availability of these riders varies based upon the state in which Everly Life is issued. To learn more about availability of Everly Life and the Riders, click HERE.
For more details
1To learn more about the Accelerated Benefit Rider, see What is an Accelerated Death Benefit, How Can I Use My Policy If I Get Seriously Sick, What Happens If I am Diagnosed with A Critical Illness, What Happens If I am Diagnosed with a Chronic Illness, and What Happens If I am Diagnosed with a Terminal Illness.
2To learn more about the Overloan Safeguard Rider see What is the Overloan Safeguard Rider.
The Accelerated Benefit Rider (ABR) is automatically included in your policy for no additional payment and allows you to access part of your Everly Life™ Death Benefit if you have a qualifying Critical, Chronic, or Terminal Illness Health Event. You can use the Accelerated Benefit (AB) to help pay for the costs of treatment for your Health Event or for any other expense. The AB Amount you receive will be less than the amount of Death Benefit you elect to accelerate because it is being paid prior to the actual time of death. You can accelerate up to 50% of the Death Benefit, subject to a limit of $500,000.1
For more details
1To learn more about the Accelerated Benefit Rider see How Can I Use My Policy If I Get Seriously Sick, What Happens If I Am Diagnosed With A Critical Illness, What Happens If I Am Diagnosed With A Chronic Illness, and What Happens If I Am Diagnosed With A Terminal Illness.
Everly Life lets you accelerate part of your Death Benefit if you have a qualifying Critical, Chronic, or Terminal Illness Health Event in states where available. This benefit allows you to access up to 50% of your Death Benefit (up to a max of $500,000 for a $1M policy). How you use the money you receive is up to you, but many people use the benefit to help pay medical bills, supplemental care, or to supplement their income if they have to take time off work.
Important Considerations for the Accelerated Benefit Rider (ABR)
Electing to receive Accelerated Benefits (AB) will impact your policy. The Coverage Amount, Account Value, Account Surrender Value, and Loan Payoff balances will be reduced. You should contact your personal tax advisor for specific tax implications and advice before exercising these benefits. These benefits are not intended to be a health contract, qualified long-term care insurance contract under section 7702B(b) of the Internal Revenue Code, or a non-qualified long-term care insurance contract.
Everly Life™ automatically includes an Overloan Safeguard Rider to help prevent the policy from lapsing and triggering a taxable event because of a large loan balance in all states where available. This benefit is available once you have owned your policy at least 15 years and when you are at least 75. The benefit is only available if your Everly Life is not considered a MEC, your loan is greater than both the Coverage Amount and 95% of your Account Value, and is less than 99.9% of your Account Value. You will receive a notice when you meet the rules to elect the Overloan Safeguard Rider.
There is no charge for this rider until you elect to use its benefit. If you elect to use this rider, there is a one-time fee. It is equal to your Account Value multiplied by 5%. If the safeguard benefit is triggered, (i) the Coverage Amount and Death Benefit will be changed, (ii) all other riders, including the Accelerated Benefit Rider (ABR), will terminate, (iii) no further payments, loan repayments, withdrawals, loans, or changes to the Death Benefit will be permitted, (iv) interest on loans will continue to accrue, and (v) monthly deductions will be waived.
Everly Life™ includes a Critical Illness benefit unlike any other in the market with two tiers of benefits in states where available. Of course, no one wants it to happen, but in the event that you are diagnosed with a Critical Illness Health Event, you can accelerate a portion of your Death Benefit. You can use your money to pay for treatments, medical bills, or anything else you may need or want.
Here is how the Critical Illness two-tier benefits work:
Tier 1: Say you have a form of Non-Invasive Cancer. While it may be minor, you’ll likely still rack up expenses or you might need some extra income because you were out of work for a bit. This tier lets you accelerate the Death Benefit up to the lesser of:
- 5% of the Death Benefit, and
- $5,000.
The amount you would receive as the Tier 1 AB (Accelerated Benefit) Amount is a dollar-for-dollar acceleration of the Death Benefit up to the allowed Tier 1 AB Amount as reduced by the $250 Administrative Charge, the Required Grace Period Payment (if the Policy is in the Grace Period), and a pro-rata repayment of the current Loan Payoff (if a loan balance exists). Thus, the Tier 1 AB Amount is not reduced by expected future life span.
Tier 2: After taking the entire Tier 1 AB Amount, you may request to accelerate more of the Death Benefit for a Tier 2 AB Amount up to the lesser of:
- 50% of the Death Benefit less the Tier 1 AB Amount, and
- $500,000 less the Tier 1 AB Amount.
Typically, the more severe the Critical Illness Health Event, the greater the amount of the Tier 2 AB Amount that will be available to you. It will be based on a determination of your future expected life span. Under certain circumstances, where your life span or the determination of your expected future life span is not significantly changed by a Critical Illness Heath Event, the Critical Illness Tier 2 AB Amount may be zero.
The Tier 2 AB Amount will be based on the Death Benefit accelerated and the monthly deductions with respect to the Death Benefit accelerated that are discounted based upon the determination of your future expected life span taking into account your Account Value and Account Surrender Value. The amount you receive will be reduced by the Required Grace Period Payment (if the Policy is in the Grace Period), a pro-rata repayment of the current Loan Payoff (if a loan balance exists), and an Administrative Charge of up to $250 assessed when the benefits are elected. If the Tier 1 AB Amount and Tier 2 AB Amount are taken at the same time, only one Administrative Charge is deducted.
Examples of Critical Illness Health Events: Major Heart Attack, Stroke, Coronary Artery Bypass, Invasive Cancer, Non-Invasive Cancer, End Stage Renal Failure, Major Organ Transplant, Paralysis, Coma, or Severe Burn. You will need to provide proof from a qualified doctor.
How Much is the Accelerated Benefit (AB) Amount?
Your total Critical Illness AB Amount will equal the sum of your Tier 1 AB Amount and your Tier 2 AB Amount. The AB Amount you receive will be less than the amount of Death Benefit you elect to accelerate because it is being paid prior to your actual time of death. It will also be less than the decrease in the Coverage Amount.
How do I receive the Accelerated Benefit?
Your total Critical Illness AB Amount will be paid in one lump-sum payment, regardless of whether you elect to accelerate: a) all or a portion of the Tier 1 AB Amount, or b) the full Tier 1 AB Amount plus all or a portion of the Tier 2 AB Amount. Payments received under this Critical Illness Accelerated Benefit are not part of a health, long-term care, or nursing home insurance policy and may not be sufficient to cover medical, nursing home, or other expenses. You should consult your tax advisor for specific tax implications of taking this benefit.
Everly Life™ lets you accelerate part of your Death Benefit if you have a qualifying Critical, Chronic, or Terminal Illness Health Event. This benefit allows you to accelerate your Death Benefit and access up to 50% of your Death Benefit (up to a max of $500,000 for a $1M policy). How you use the money you receive is up to you, but many people use the benefit to help pay medical bills, supplemental care, or to supplement their income if they have to take time off work. It is important to understand how these features work as they do impact your Death Benefit.1
For more details
1To learn more about the Accelerated Benefits as well as the rules for and the consequences of taking Accelerated Benefits, see How Can I Use My Policy If I Get Seriously Sick, What Happens If I Am Diagnosed With A Critical Illness, What Happens If I Am Diagnosed With A Chronic Illness, and What Happens If I Am Diagnosed With A Terminal Illness.
UnitedHealthcare creates and publishes the Machine-Readable Files on behalf of Security Benefit Corporation. To link to the Machine-Readable Files, please click on the URL provided: transparency-in-coverage.uhc.com
To locate and view Machine-Readable File information:
- Hit Ctrl-F on your keyboard to bring up a search bar.
- Type in Security Benefit Corporation and the associated MRFs will appear.
- Example: 2022-07-01_customer name_Choice-Plus_in-network-rates.json.
For more information, refer to the Transparency in Coverage external page on uhc.com.
The Terminal Illness Accelerated Benefit allows you to accelerate a portion of your Death Benefit if you are diagnosed with a Terminal Illness Health Event in states where available.
Terminal Illness Health Event: A qualified doctor has determined that you are likely to enter your afterlife within 12 months.
How Much is the Accelerated Benefit (AB) Amount?
If you have a Terminal Illness Health Event, you may request to accelerate the Death Benefit up to the lesser of:
- 50% of the Death Benefit, and
- $500,000
The Terminal Illness AB Amount will be based on the Death Benefit accelerated and the monthly deductions with respect to the Death Benefit accelerated that are discounted based upon a determination of your future expected life span taking into account your Account Value and Account Surrender Value. The amount you receive will be reduced by the required Grace Period Payment (if the Policy is in the Grace Period), a pro-rata repayment of the current Loan Payoff (if a loan balance exists), and an Administrative Charge of up to $250 assessed when the benefits are elected. The AB Amount you receive will be less than the amount of Death Benefit you elect to accelerate because it is being paid prior to your actual time of death. It will also be less than the decrease in the Coverage Amount.
How do I receive the Accelerated Benefit?
Your Accelerated Benefit will be paid in one lump-sum payment. Payments received under this Terminal Illness Accelerated Benefit are not part of a health, long-term care, or nursing home insurance policy and may not be sufficient to cover medical, nursing home, or other expenses. You should consult your tax advisor for specific tax implications of taking this benefit.
No, the maximum Death Benefit you may accelerate is 50%, but not more than $500,000. This ensures some of your Death Benefit will remain for those you have designated as a beneficiary.1
The Accelerated Benefit Amount you receive will be less than the Death Benefit you request to be accelerated and less than the reduction in the Death Benefit. It is less because it is based on your future expected life span and takes into account other factors. The AB Amount you receive is based on the Death Benefit accelerated and the monthly deductions with respect to the Death Benefit accelerated. These are discounted based upon a determination of your future expected life span taking into account your Account Value and Account Surrender Value. The AB Amount you receive will be reduced by the required Grace Period Payment (if the Policy is in the Grace Period), a pro-rata repayment of the current Loan Payoff (if a loan balance exists), and an Administrative Charge of up to $250 assessed when the benefits are elected.
For more details
1To learn more about beneficiaries for your Policy, see What Is A Beneficiary, Can I Designate Multiple Beneficiaries, Can I Designate A Charity As A Beneficiary.
How would you and your family manage if you suffer a disability and are unable to work?
With Everly Life, you can create supplemental income by taking a series of withdrawals or loans from your Account Value that are generally penalty and income tax-free.
Leaving a Legacy
Money can be withdrawn from an active policy at any time.*
- The minimum withdrawal is $500.
- Maximum withdrawal is 99% of your Account Value minus any Loans and interest.
- Minimum coverage amount after the withdrawal is $10,000.
You can request a withdrawal by contacting the CEC at 855.290.0529.
*Withdrawing money from your policy may impact the coverage amount. You may contact the CEC to understand any impacts withdrawals may have on your policy. Or, refer to your policy for more information.
For more details
1To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
Loans are one way to use your Account Value to get cash. Unlike a bank loan or credit card, policy loans don’t require an approval process or credit check since you’re essentially borrowing from yourself. And, they will not impact your credit score. You can use your Account Value to take a loan for anything.1
Things to be aware of when considering taking a loan:
You are charged interest on the amount of the loan. Currently, the interest charged is 3.75%. The rate can change each anniversary of your purchase, but it will never be more than 8%.2 If you don't pay the loan interest, it becomes part of the loan. Even though you took a loan, your Account Value will continue to earn interest, currently at 4.0%. The Account Value related to the loan will earn less interest than the rest of your Account Value.
If you choose to pay back your loan, you pay back the amount borrowed plus the interest charged on the loan.
If you choose not to repay your loan, your policy’s Death Benefit will be reduced by the amount borrowed plus the interest charged on the loan. Please be aware, if you choose not to repay your loan and the policy lapses, you may be subject to tax. Please consult your tax advisor when the time is right.
JUST IN CASE: OVERLOAN SAFEGUARD RIDER
You have access to the Overloan Safeguard Rider. It helps protect policies against a lapse and the tax that may apply. The rider comes automatically with your policy.
This benefit is available once you have owned your policy at least 15 years and when you are at least 75.3 There is no charge for this rider until you elect to use its benefit. If you elect to use this rider, there is a one-time fee. It is equal to your Account Value multiplied by 5%. If you elect to use this rider, your Death Benefit will change, and the Accelerated Benefit Rider (ABR) will terminate.
For more details
1To learn more about the rules for taking loans from Everly Life™, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2The loan charge rate can be changed once a year for the first 10 years on the anniversary of your policy. After that, the loan charge rate can be changed quarterly. The loan charge rate is set in Security Benefit's sole discretion.
3To learn more about the Overloan Safeguard Rider, see What Is The Overloan Safeguard Rider.
During the first 20 years of your policy, under the Lapse Protection Guarantee (as long as you have paid the required Lapse Protection Guarantee payment), your policy will not terminate even if the Account Surrender Value is insufficient to pay the monthly deductions. At the end of the first 20 years, if your Account Surrender Value is not enough to pay the monthly deductions, your Everly Life™ will enter the Grace Period.1 If you change the coverage amount for your policy, including due to a withdrawal, the required Lapse Protection Guarantee payment will change. The Lapse Protection Guarantee will continue to apply for the first 20 years of your policy. Without the Lapse Protection Guarantee, if the Account Surrender Value is insufficient to pay the monthly deductions for the insurance charges and administrative charge, your policy will terminate.2
How much do I have to Pay to Keep My Policy Alive?
The required Lapse Protection Guarantee payment is the Lapse Protection Guarantee payment for each month since the policy start date, plus all withdrawals, plus the amount required to pay off all loans and any interest owed on the loans.3
For more details
1To learn more about the Grace Period and the payment required to keep the policy alive, see What is the Grace Period and the Required Grace Period Payment.
2To learn more about the monthly deductions, see What are Monthly Deductions.
3To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
You can take money out of Everly Life™ using withdrawals and loans. Take out one large amount or set up an ongoing income stream, depending on your needs. The funds you take from your Everly Life policy are generally free of any income tax or early withdrawal penalties.
Everly Life also includes an Overloan Safeguard Rider to help prevent the policy from lapsing and triggering a taxable event because of a Loan in states where available.
Generally, there are two ways to use your Account Value to get cash from Everly Life™ free of income tax or early withdrawal penalties – withdrawals and loans.1 Monies are available in one large amount or as an income stream, depending on your needs. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Keep in mind, total payments are all the amounts you paid into the policy and do not include interest. You can also take a loan from your Account Value tax-free, assuming your policy is not considered a MEC.
A few things to keep in mind…Using part of your Account Value to receive cash will generally impact the coverage amount and may impact how long your policy remains in force. Also, if your policy terminates while there is a loan outstanding, you may be subject to tax. Everly Life also includes an Overloan Safeguard Rider to help prevent the policy from lapsing and triggering a taxable event because of a large loan balance. You should consult with your tax advisor to determine the tax treatment of any withdrawals or loans from your policy.
For more details
1To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Already concerned about how expensive college may be in the future?
Everly Life lets you easily access your Account Value whenever you need it, like helping to pay for college. Easily access your money, generally penalty and income tax-free, through withdrawals and loans.
And, unlike some college funding vehicles, you are not penalized if you don’t use the money for educational expenses.
Do you have a mortgage, car loan, or credit card debt?
These debts don’t die with you. Your assets will be used to pay them off, leaving your family with less than you’d intended.
If you name your family as beneficiaries, the income tax-free Death Benefit from your Everly Life policy can help pay off that outstanding debt so your loved ones don't have to worry about it.
Many of us watched friends and family members retire during The Great Recession and have no choice but to withdraw funds from their retirement accounts at the worst time. Using Everly Life™ as a retirement hedge can help you avoid a similar outcome.
With Everly Life, you can create a retirement income stream through policy withdrawals and loans that is not tied to market performance. And, by tapping your Everly Life Account Value as an income source, you can give your retirement accounts that are tied to market performance the time to grow again if markets are down when you retire.
Want to retire at 50, 55, or 60? Use the tax-advantaged interest in your Everly Life™ Account Value to build up a “nest egg.” When you’re ready, you can take withdrawals and loans from Everly Life to create an income stream generally penalty and income tax-free and leave your taxable retirement plans to continue growing until you’re older.
Hint: Want your nest egg to grow faster? Within limits you can increase your Everly Life payments you plan to make — or even add additional money, like if you receive a bonus or inheritance.
There are times in life when you might need access to additional money, like if you lose your job. Everly Life™ lets you take money from your Account Value, through withdrawals and loans, no questions asked. You can generally access those funds free of any income tax or early withdrawal penalties.
Loans are one way to use your Account Value to get cash. Unlike a bank loan or credit card, policy loans don’t require an approval process or credit check since you’re essentially borrowing from yourself. And, they will not impact your credit score. You can use your Account Value to take a loan for anything.1
Things to be aware of when considering taking a loan:
- You are charged interest on the amount of the Loan. Currently, the interest charged is 3.75%. The interest rate charged can be changed once a year for the first 10 years on the anniversary of your policy. After that, it can be changed quarterly. The interest rate charged is set at Security Benefit's sole discretion, but it will never be more than 8%.
- If you don't pay the loan interest when it is due, it becomes part of the Loan.
- Even though you took a Loan, your Account Value related to the Loan will continue to earn interest at 4.0%. The Account Value related to the Loan will earn less interest than the rest of your Account Value.
- If you choose to pay back your Loans, you pay back the amount borrowed plus the interest charged on the Loan. Any Loan repayment must be at least $100.
undefined - If the amount to pay back your Loan plus interest exceeds the Account Value, your Everly Life™ will enter the Grace Period.2
- If you choose not to repay your loans, your policy’s Death Benefit will be reduced by the amount borrowed plus the interest charged on the Loan.
Please be aware, if you choose not to repay your loans and the policy lapses, you may be subject to tax based on the amount of the loans taken and the interest on the loans. Please consult your tax advisor when the time is right.
For more details
1To learn more about the rules for taking a Loan, see How Can I Access Cash from My Account Value Though Loans.
2To learn more about the Grace Period and the payment required to keep the policy alive, see What is the Grace Period and the Required Grace Period Payment.
If your total Account Value is greater than the total payments, taxes may apply on any amount of growth that was due to interest accumulation. Due to state-specific tax laws that may apply, we suggest you talk to your tax advisor.
Hitting contribution limits or income caps with your retirement savings plans?
Your Everly Life Account Value earns tax-advantaged interest. Plus, you can access those funds through withdrawals and loans – generally, penalty and income tax-free – as a flexible income stream when you retire.
Bonus: Having this additional source of retirement income could allow you to hold off on electing Social Security so that down the line you may receive greater Social Security.
If you cancel your policy you receive your Account Surrender Value. (Account Value minus any outstanding loans and interest.)
Undertaking a big home remodel? Maybe buying a beach house or going on sabbatical?
With Everly Life, you can easily access the money from your Account Value, no questions asked, through withdrawals and loans. And, you can access those funds generally penalty and income tax-free ─ to help put those big plans within reach.
Yes. If you wish to withdraw all of your Account Value, the amount you receive equals the Account Value minus your outstanding loans plus interest. At that point, the insurance coverage will terminate.
In order for your policy to remain active, the Account Surrender Value must be able to pay the monthly deductions for the insurance charges and administrative charge.1 If on a monthly anniversary of your policy issue date, the Account Surrender Value is insufficient to pay the monthly deductions, your policy will enter the Grace Period during which you must make a payment to keep your policy alive. If you do not make a sufficient payment by the end of the Grace Period, your policy will terminate. No Grace Period applies to the first payment.
How Long do I have to Make the Payment to Keep My Policy Alive?
You have until the end of the Grace Period to make the payment to keep your policy alive. You will be sent a notice that your Everly Life has entered the Grace Period at least 30 days before the end of the Grace Period. However, the Grace Period will always be at least 60 days.
How much do I have to Pay to Keep My Policy Alive?
The Grace Period notice will tell you what minimum payment you must make to keep your policy alive. The minimum payment is the lesser of: (i) the amount of any negative Account Value plus three months of monthly deductions,2 (ii) the amount to keep the Lapse Protection Guarantee in effect for three months after the Grace Period, or, if shorter, the remaining Lapse Protection Guarantee period,3 or (iii) the amount required by the Overloan Safeguard Rider.4
For more details
1To learn more about the monthly deductions, see What are Monthly Deductions.
2To learn more about the monthly deductions, see What are Monthly Deductions.
3To learn more about the Lapse Protection Guarantee, see What is the Lapse Protection Guarantee.
4To learn more about the Overloan Safeguard Rider, see What is the Overloan Safeguard Rider.
You can request to take a loan from your Account Value1 after you have had the policy for at least 31 days. Loans are tax-free to the extent the policy is not considered a "Modified Endowment Contract" (MEC). You can request a loan by logging into your account and completing a loan request.
Please note that the maximum loan you can take is your Account Value minus the amount of any existing loans and any interest charged on the loans.
For more details
1To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Using part of your Account Value to receive cash either through a loan1 or withdrawal2 will generally impact the amount of your life insurance protection and may impact how long your policy remains active. If you choose not to repay your loan, the amount payable on your death will be reduced by the outstanding amount of the loan, which will include any unpaid interest charged.
For more details
1To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
2To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
Impact on coverage amount:
- A withdrawal will not decrease the Coverage Amount if the withdrawal is taken by age 55 and the withdrawal does not exceed 25% of the Account Surrender Value at the start of the Policy Year.
- If a withdrawal is taken after age 55, the coverage amount will be decreased by the amount of the withdrawal.
- If a withdrawal is taken by age 55, but the withdrawal is for more than 25% of the Account Surrender Value at the start of the Policy Year, the coverage amount will be decreased by the excess amount.
- The Lapse Protection Guarantee Payment may decrease, but the Lapse Protection Guarantee Period will not change.1
- Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest. Withdrawals above that amount will be taxed.
- If your Everly Life becomes a MEC, withdrawals will be treated as taking the interest credited to the policy first, and these withdrawals will be taxable.2 In addition, if you are younger than 59 ½ when you take any withdrawals, a 10% tax penalty may apply.
For more details
1To learn more about the Lapse Protection Guarantee, see What is the Lapse Protection Guarantee.
2To learn more about MEC status, see Is There A Limit On How Much Money (Payments) I Can Put Into The Policy.
Yes! You can choose to use your Account Value the way you want. Many people choose to use their Account Value to supplement retirement or even take early retirement. Others use it to help pay for their children’s education. There are two ways to access your Account Value to get cash: withdrawals and loans. You can generally structure your payouts so that they are tax-free, assuming the policy is not considered a MEC.
- Withdrawals1: Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest. Withdrawals above that amount will be taxed.
- Loans1: You can take a loan from your Account Value tax-free, assuming the policy is not considered a MEC. However, if your policy terminates while there is a loan outstanding, you may be subject to tax.
- A few things to keep in mind when taking withdrawals and loans:
- Using part of your Account Value to receive cash will generally impact the coverage amount and may impact how long your policy remains active.
- You need to carefully consider how to structure your payout, as withdrawals or loans are based on your individual tax situation. Please consult your tax advisor when the time is right.
For more details
1To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash from My Account Value through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal.
You can choose to use your Account Value the way you want. Many people choose to use their Account Value to supplement retirement or even take early retirement. Others use it to help pay for their children’s education. Whatever your choice, it is important to remember that using part of your Account Value to receive cash will generally impact the amount of your life insurance protection and may impact how long your policy remains active. Also, you will need to structure the payouts in a way that best suits your tax situation.1 Please consult your tax advisor when the time is right.
For more details
1Under Everly Life, you can access your Account Value through withdrawals and loans. Withdrawals are tax-free to the extent of your total payments and assuming the policy is not considered a MEC. Total payments do not include interest or the match. If you take a partial withdrawal from the policy before the match vests, the Match Value will be reduced pro-rata. Accessing your Account Value through loans is tax-free, assuming your policy is not considered a MEC. However, if your policy terminates while there are any loans outstanding, you may be subject to tax. Tax laws are subject to change. You should consult a tax professional. To learn more about the rules for taking withdrawals from Everly Life, see How Can I Access Cash From My Account Value Through Withdrawals. To learn more about the consequences for taking withdrawals from Everly Life, see What Do I Need To Consider When Taking A Withdrawal. To learn more about the rules for taking loans from Everly Life, see How Can I Access Cash From My Account Value Through Loans. To learn more about the consequences for taking loans from Everly Life, see What Do I Need To Consider When Taking A Loan From My Policy.
Did you know it’s not uncommon for a lender to demand full payment of a private student loan when a co-signer dies?
If you cosigned a loan with your parents and died while the loan is outstanding, if you name them as beneficiaries, they can receive all or part of your Everly Life policy Death Benefit income tax-free to help them pay it off immediately.
The same applies to credit card debt or personal loans. Co-signers, joint account holders, and spouses in community property states can become responsible for paying off the debt.