Who can Benefit from Puritan Lighthouse?
Do you have money set aside to pass on to your family, favorite charity or religious organization with minimal tax or probate
consequences upon your passing?
Do you wish to immediately increase the value of your existing estate or pay for funeral expenses through the purchase of
Have you suffered erosion of principal in any of your accounts?
Do you have money in a savings account, money market account or a CD and would like to increase the asset value with a life
How It Works
The 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 (qualfied 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
Only funds not needed for income should be repositioned into Puritan Lighthouse. However, should you ever need money, you may access funds by taking a policy loan against your whole life insurance policy. The amount available to borrow is based on the cash value that your policy has accumulted when you request the loan. No cash values, or very small cash values, may be available in the first few policy years. Should you choose to obtain a policy loan, interest will be charged on the balance of your loan at a rate of 7.4% per year. For complete terms and limitations, refer to the policy.
The 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.