Life insurance bonuses

What types of bonuses are included in taxable income?

You need to include a bonus amount in your tax return if all the following conditions apply:

• within 10 years from when the policy started, you have actually received the bonus amount or have directed how it is to be dealt with
• your life insurance policy or friendly society insurance bond matured, was partly or fully surrendered, terminated or forfeited
• the bonus amount is in addition to the capital amount that you have paid to the life insurance company or friendly society.

Note

If, during the term of your policy or bond, you increased the amount of your premiums by more than 25% of the amount of premiums you paid in the previous policy year, your policy is taken to start at the beginning of the policy year in which you paid the increased premiums. This means that some or all of a bonus amount may need to be included in your assessable income.

Note

Different rules apply to a bonus received from a policy that started on or after 28 August 1982 and before 8 December 1983. Generally such a bonus does not need to be included in assessable income unless the policy has been taken to start at a later date and the rules apply. If you are not sure if you need to include your bonus phone us on 13 28 61.

Taxable bonuses

The amount of the bonus which is taxable is:

• the whole bonus amount you received in 2008–09 if you received it during the first eight years of the policy
• two-thirds of the bonus amount you received in 2008–09 if you received it during the ninth year of the policy, or
• one-third of the bonus amount you received in 2008–09 if you received it during the 10th year of the policy.

Excluded bonuses

Do not declare as income any life insurance bonuses from policies that:

• you started before 28 August 1982
• matured due to the death of the person insured
• you surrendered due to an accident, illness or other disability of the person insured
• you surrendered due to severe financial hardship, or
• are retirement savings accounts.

If you have received a statement detailing the bonus amount allocated to your continuing life insurance policy or friendly society bond but you have not actually received the bonus or directed how it is to be dealt with, do not include the bonus amount as income.

Do not include any bonus amount received after the 10th year of the policy.

Tax offset

You will get a tax offset equal to 30% of any bonus amounts included in your income. We will work out this tax offset for you.

Disability Income Insurance

SBLI USA's Paycheck Protector ^sm Works For You...When You Are Not Able.

Disability Income Insurance Help Cover Expenses While You Recover.
You do your best to provide for your family. But, if you're injured and unable to work for a time, making ends meet can become a real challenge, especially if you don't have disability income. Disability income insurance can provide you with an income stream that protects you and your family from possible financial devastation.

SBLI USA's Paycheck Protector ^sm can make a difference. It provides you with disability income when you need it most; up to 40% of your earnings from work should an accident leave you disabled*

SBLI USA Paycheck Protector ^sm features:

• Guaranteed disability income
• Twenty-four month maximum benefit period
• 24-hour coverage, on and off the job
• Coverage amounts from $500 to $1,500 (in $250 increments)
• Tax-free disability income benefits
• Premiums waived while you receive disability income benefits
• Available to people ages 20 - 55
• Disability Income Insurance policy is guaranteed renewable through age 64
• Provides up to 40% of your earnings from work

*Disability defined as inability to earn more than 50% of your prior earnings in your own occupation while under the regular care of a physician.

Learn More About SBLI USA Disability Income Insurance
To find out about how SBLI USA disability income insurance can benefit you and your loved ones, contact a sales advisor today at 1-866-SUSA-WEB (787-2932).

What is Term Life insurance?

Term Life insurance is one of the most cost-effective forms of life insurance. Term Life insurance offers the flexibility of level payment options for up to thirty years, and the ability to convert your coverage to Whole Life at any time without having to answer any additional medical questions. And best of all, applying online for Term Life insurance is easy and fast!

What is Whole Life insurance?

Whole Life insurance -- also known as permanent life insurance - does just what the name implies -- it provides a lifetime of financial protection for your family. Unlike Term Life insurance, Whole Life is a lifelong policy. You remain covered as long as the premiums are paid. An additional benefit of Whole Life insurance is that it can build cash value over time. Start protecting your loved ones and request Whole Life insurance quotes online today. It's easy, fast and free.

Why do I need Whole Life insurance?

Whole Life insurance can protect your family financially in the case of your death. Whole life insurance coverage can help your survivors maintain their standard of living, pay their mortgage, finance college, build a nest egg, etc. With Whole Life insurance you don't have to worry about renewing or converting your policy -- it is always there for you, so long as you continue to pay the premiums when due. Whole life insurance also features cash value that builds over time, tax-deferred. This value may be borrowed against for a variety of purposes.

Tips for Purchasing Life Insurance

1) Consider why you need life insurance

• Life insurance doesn't simply insure your life, it helps ensure the well-being of your loved ones if you're unable to do so.
• Motivate yourself to make the decisions that are best for you and your family.

2) Maintain your health

• Make wise health decisions today -- you may need to undergo a medical exam to determine your insurability.
• The better your health, the better your policy rate. Take advantage of the opportunity to save money by getting in shape.

3) Determine the right amount of coverage

• Before selecting an insurance company, figure out how much coverage you need. Online calculators will help determine your life insurance and other financial needs.
• A simple, alternative approach is to multiply your annual salary by seven. The result is the average recommended amount of coverage you should have.

4) Choose a provider

• One of the best ways to buy life insurance is directly through a life insurance company.
• Just like certain stores specialize in clothing or electronics, life insurance companies specialize too. Research to find the one that fits your situation.
• Use the Internet, friends and family; they're all valuable resources.

5) Consider your preferences

• The Internet is one of the most efficient ways to maintain your policy. Find a company with the technology that will allow you to manage your account and conduct transactions online.
• A good company will offer multiple alternatives. Perhaps you prefer to make transactions in another language, over the phone, or in person. Look for a company that offers these options.

6) Do your homework

• Once you have selected an insurance company, get a quote online so you have more information to help you in your decision making process.
• Think over the questions you'll be asked. Who are your beneficiaries? What's your financial situation? What do you plan to use the coverage for?
• Call to speak with a licensed agent, or consider purchasing your policy online. Your agent will have an understanding of the changes you face that could affect your coverage or beneficiaries, and will inquire with you about life stages such as marriage, starting a family, or retirement.
• Be prepared with your own information and questions as you go through these transitions.

7) Find the policy that works for your life stage

• There are many different types of life insurance products, and learning about the available options will provide you the most comfort and security.
• A term policy will help you secure protection at the lowest rate for a specified period of time.
• If you can pay a little more money, a whole life policy may allow you to lock-in a more afforable rate early on, keep that rate for life, and give you the option to borrow the cash value of the policy.

8) Consider the financial benefits of the policy you choose
Life insurance policies offer financial benefits that your agent will outline for you.

• Under current tax laws, your beneficiaries may not have to pay federal income tax on the money they receive from a life insurance policy.
• Accelerated death benefit riders, under certain circumstances, may allow you to receive a percentage of your life insurance death benefits during your lifetime.

9) Create a relationship with your insurance company

• When you speak with your insurance company, write down the name of the agent that helps you, and what's discussed, so you'll be prepared for any follow up.
• Stay tuned to the company's Web site for any updates or advice they have to offer.
• Take advantage of additional financial tools and resources the company has to offer.

10) Manage your financial future

• Be proactive in making sure you have the right coverage at every stage of life.
• Periodically review your personal circumstances and the products you own. Make sure your coverage fits your family and does not lapse.

Despite these uncertain times you can take control of your financial future and have the right coverage at the right time! For more tips and advice on purchasing life insurance visit SBLI USA Mutual Life Insurance Company, Inc. at www.sbliusa.com or phone 1-866-331-3075.

Fixed Index Universal Life Insurance

The life insurance of the future – available today

Allianz Life Insurance Company of North America (Allianz^®) offers innovative fixed-index universal life insurance products. FIUL provides affordable permanent life insurance protection with the potential for gains to your accumulation value, while providing a guarantee of your principal.

More than just financial protection in case something happens

When it comes to life insurance you have many choices. But an insurance policy that simply pays when you die may fall short of your increasingly complex financial needs. A fixed index universal life insurance policy can meet the more immediate concerns that you may have, such as:

• What if I have an accident or a serious injury that keeps me from working?
• How will I pay the bills during my recovery?
• If I have a heart attack or get cancer, how will I cover the costs of treatment and still take care of my family?

Our fixed index universal life products address these concerns by offering:

• Powerful accumulation potential using fixed-index crediting methods that could increase the value of your policy, which you can use as a retirement income stream.
• Choose-a-Guarantee, for exceptional control over your death benefit coverage.
• Premium payments are not required after age 100.
• Flexible premium and optional riders for a personalized plan of insurance. Optional riders may be available at an additional cost.

Contact a financial professional to learn more about Allianz Life fixed index life insurance products.

Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America.