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Infographic: Five Group Whole Life Insurance Conversation Starters

We've paired five popular Group Whole Life (GWL) insurance selling scenarios with five quick conversation starters. Use them and start steering your client discussions in the right direction, faster.

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Important Information about Group Whole Life with the Chronic Care Benefit. Refer to a Chronic Care Benefit Overview brochure approved in your state for complete details.

The Chronic Care Benefit is not intended to be a qualified long-term care insurance contract under section 7702B of the Internal Revenue Code. The Chronic Care Benefit is neither long term care, nursing- home, or home care insurance and is not conditioned upon the receipt of long-term care or medical services. Having a chronic illness means the insured: is permanently unable to perform, without substantial assistance, at least two Activities of Daily Living (eating, toileting, transferring, bathing, dressing, and continence) (in NY, for a period of 90 consecutive days) due to loss of functional capacity; or requires Substantial Supervision to protect the insured from threats to health or safety due to permanent Severe Cognitive Impairment. Additionally, in North Carolina, and Washington, generally, Chronic Illness is any medical condition that requires continuous confinement in an Eligible Institution, where the Insured is expected to remain there for the rest of their life. In New York, generally, the Insured requires continuous care for the remainder of the Insured’s life in an Eligible Facility or at home.

There is a fee to exercise the Chronic Care Benefit. The fee is a percentage of the Eligible Amount for the Chronic Care Benefit and is determined based on the Insured’s age at the time the benefit is approved to be exercised: 18% for ages 45 and above; 27% for ages 44-35; 36% for under age 35. In certain situs states the term “Fee” is replaced with “Actuarial Discount” or “Reduction.” The certificate’s premium payments will be based on the reduced amount of insurance at the current rate. Fees are taken from the Chronic Care Benefit payment.

Except in Washington and North Carolina, the acceleration of the death benefit is intended to receive favorable tax treatment under §101(g) of the Internal Revenue Code. Accessing other similar benefits may cause the per diem limit to be exceeded. The insured must be chronically ill as defined in 26 USC 7702B. Receipt of accelerated death benefits may be taxable. For certificates issued in Washington or North Carolina, the Chronic Care Benefit defines a chronic illness in accordance with state insurance requirements, and may be taxable, as the state prescribed definition differs from the federal tax law definition. Certificate owners should seek advice from a tax advisor prior to requesting a benefit payment.

Accelerating the payment of the death benefit may affect eligibility for public assistance programs, including MEDICAID and SUPPLEMENTAL SECURITY INCOME (“SSI”). Insureds should contact the Medicaid Unit of the local Department of Public Welfare and the Social Security Administration Office for more information. In NY, the Chronic Care Benefit is not a health insurance certificate providing long-term care insurance subject to the minimum requirements of New York Law, does not qualify for the New York State Long Term Care Partnership Program and is not a Medicare supplement certificate.

Please carefully read the accelerated death benefit disclosure provided to employees at application. Restrictions and limitations will apply.

The information provided is not written or intended as specific tax or legal advice. MassMutual, its subsidiaries, employees, and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

The product and/or certain features are not available in all states. State variations will apply. This material is not for use in California. The Chronic Care Benefit is not available in Massachusetts.

Group Whole Life Insurance (GPWL), (policy/certificate forms MM-GPWL-2014 and MM-GCWL-2014, and MM-GPWL-2014 (NC) and MM-GCWL-2014 (NC) in North Carolina), is level-premium, participating permanent life insurance. The GPWL policy and GCWL certificates are issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001.