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Puritan Lighthouse - Single Premium Combo Insurance

Who can Benefit from Puritan Lighthouse?


How It Works

Puritan Lighthouse is a Single Premium Immediate Annuity and a Limited Payment Whole Life insurance policy that work together to create a unique strategy for passing assets to heirs. This is a practical way for you to place tax-deferred money utilizing a strategy that spreads your tax burden out over a 10 year period and increases the overall asset value through funding a whole life insurance policy. In other words, leverage your current account value to create a larger death benefit that passes on tax-free. Depending on your source of funds (qualified or non-qualified), you may be liable for income tax on each of the ten annual distributions from the immediate annuity that is used to fund the whole life policy.

Tax deferred funds are deposited by utilizing the Puritan Life Insurance Company of America IRA Transfer / 1035 Exchange Request Form. This tax-free transfer is placed into a Single Premium Immediate Annuity. The Single Premium Immediate Annuity distributes an annual payout to a whole life insurance policy, thereby spreading any taxes over the course of ten years. This is a taxable event.

You should consult your tax advisor or legal counsel for specific advice and information regarding your individual situation.


Accessing Funds

Puritan Lighthouse is a Single Premium Immediate Annuity and a Limited Payment Whole Life insurance policy that work together to create a unique strategy for passing assets to heirs. This is a practical way for you to place tax-deferred money utilizing a strategy that spreads your tax burden out over a 10 year period and increases the overall asset value through funding a whole life insurance policy. In other words, leverage your current account value to create a larger death benefit that passes on tax-free. Depending on your source of funds (qualified or non-qualified), you may be liable for income tax on each of the ten annual distributions from the immediate annuity that is used to fund the whole life policy.


Accelerated Benefits

Puritan Lighthouse offers, at no additional cost, accelerated benefit provisions to help offset the expense of terminal illness, nursing home care or chronic illness. The total portion of the face amount that may be accelerated under this benefit is the lesser of $250,000 or 80% of the face amount. If you are fortunate enough never to need an accelerated benefit, the Puritan Lighthouse death benefit will pass unreduced to your beneficiaries.


Neither Puritan Life Insurance Company of America, its affiliates, nor any of its representatives may provide tax or legal advice. Individuals should consult their tax advisor or legal counsel for specific advice and information regarding their individual situation. Withdrawals may be subject to taxation and if taken prior to age 59½, may be subject to a 10% IRS penalty tax. For explanatory purposes of this brochure, owner/policyholder are all assumed to be the same individual. This guide is not a contract and descriptions of the policy provisions are only partial. Exclusions and limitations may vary by state. Refer to the policy form for complete details.