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.

Universal Life Insurance

Universal life insurance is a flexible-premium life insurance policy that accumulates account value. The flexibility of a universal life insurance policy allows you to change the amount of insurance as your needs for insurance change. Allianz Life Insurance Company of North America (Allianz^®) offers innovative universal life products designed to fit your insurance needs.

Benefits of our universal life insurance products include:

• Guaranteed no-lapse death benefit protection up to age 120
• Flexible premium payments
• Affordable income and estate protection
• Optional long-term care accelerated benefit rider is available at an additional cost

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

Consider life insurance -- the foundation of a solid retirement plan

• If you don't have a life insurance policy, get one. Life insurance not only helps to leave a legacy for generations to come, it will protect your loved ones and help provide them with financial security once you're gone.
  
  
• Consult an expert in order to find the right life insurance for you. For example, BoomerLife by SBLI USA lets you apply for up to $25,000 of whole life insurance with no hassle. Acceptance is guaranteed for anyone ages 50 to 75. Selected benefits remain fixed for life and the premium you pay will not go up. Additionally, the policy builds cash value that grows each year tax-deferred. For a free, no-obligation quote call (866) 331.3078, or visit www.sbliusa.com.

Begin to explore other retirement income options

• Determine the amount of guaranteed retirement income you already have. Examples of these are cash savings, corporate pension plans, home equity, or annuity-type investments.
  
  
• Are you married? If so, how will that affect your retirement budget?
  
  
• Pay attention to how your retirement funds are earning money. Are they structured for maximum returns? It's crucial that you continually assess these funds.
  
  
• Decide when to begin Social Security benefits (www.ssa.gov). According to AARP, for each year you put off collecting your benefits between ages 62 and 70, you increase your payments by 8 percent.
  
  
• Calculate your potential monthly retirement budget based on your estimated income weighed against your expenses. At minimum, you need enough retirement income to cover basic living expenses for your lifetime.
  
  
• If your initial assessment requires additional income, consider part-time work during retirement, or perhaps selling your larger home for a more comfortable, carefree condo.

Assess your financial plan and budget

• Begin to assess your basic retirement income sources such as a 401(k) plan, IRA, and life insurance plans.
  
  
• How much will you need to retire? Determine this by creating a budget that will enable you to pay your monthly expenses such as food, heat, rent and transportation. Consider expenses that may increase such as health insurance and prescription medicines. At the same time, consider those that may decrease, such as work-related and educational spending.
  
  
• Health care coverage is necessary in supplementing your financial foundation and these costs can add up fast. It's important to have an adequate plan both before and after retirement. After age 65 you are eligible for Medicare coverage. But what if you want to retire before then? Your employer may offer a plan for retiring employees, or you may have to look into private coverage, so be sure to consider this.
  
  
• Take into account variable expenses such as tax liabilities on your home, illness or the care of elderly parents. Other, often underestimated, variables include gifts, clothing, recreational expenses, and increases in costs of living. For valuable retirement planning resources and projected trends in costs of living visit www.usa.gov.

Courtesy of SBLI USA

If you are one of America's 78.2 million baby boomers, you are likely considering what ideal retirement will look like, and the steps required to achieve it. With the current economic downturn, many boomers are finding it necessary to revisit their initial retirement goals. According to the Social Security Administration, today's retirees count on corporate pensions and Social Security for 56 percent of their retirement income. With a few minor adjustments, some careful planning and a positive attitude, the other 44 percent is attainable.

"It's never too late to start planning for retirement and it's crucial that life insurance is considered as the foundation of your plan." says Vikki Pryor, president and CEO at SBLI USA Mutual Life Insurance Company, Inc. "Determine your needs by deciding how much money surviving family or loved ones will need to maintain their standard of living if you are no longer around to protect them. Women need to pay particular attention to their retirement planning options." To learn more about the educational tools and insurance products designed with baby boomers in mind visit www.sbliusa.com.

Environmental Stewardship Initiatives

Prudential businesses in the U.S. and abroad are focusing on a broad range of activities that contribute to the protection of the environment.

Reducing CO₂ Emissions
Since 1998, Prudential Financial has made great strides in energy conservation and recycling. During that time, we've reduced net greenhouse gas emissions by 33 percent, the equivalent of 40,000 tons. And we're continuing our efforts through:

• Installation of more energy-efficient lighting, heating, and cooling systems
• Replacement of our fleet of security vehicles with hybrids
• Implementation of a telecommuting program for employees

Green IT
Our technology initiatives have helped lower carbon emissions by about 18,000 tons a year, the equivalent of removing 3,300 cars from the road for one year. Our initiatives include:

• A migration to Energy-Star computers
• Physical changes to data centers to reduce the number of servers used and energy consumption
• Elimination of paper faxing in many areas and reduced paper use that saves more than 5,800 trees every year
• Reuse, recycling, sale, or donation of PDAs, cell phones, and PCs
• Purchase of equipment from manufacturers that are reducing their use of hazardous material, such as lead, and that package products in recyclable materials

Green Printing
The initial focus of our "green print" procurement program is to reduce the amount of paper used to print and copy documents. Our future goals include:

• The purchase of paper made from recycled content and produced under forest management programs
• Eco-friendly print processes, including vegetable-based inks
• Alternatives to traditional print, such as e-delivery and print-on-demand
• Project-specific reviews of the entire print supply chain from raw material to disposal

Recycling
Our major U.S. facilities recycle paper, plastic, metal, and glass, as well as fluorescent light bulbs, construction debris, ink cartridges, and batteries. In 2008, we recycled more than 2.7 million pounds of materials.

Mass Transit and Telecommuting

Prudential Financial encourages the use of mass transit by its employees through its participation in the TransitChek® Transit Reimbursement Incentive Program where available. We also support alternative work arrangements, such as compressed workweeks and telecommuting.

Environmental Activism

Across the country, Prudential Financial actively supports a broad range of employee and community efforts to improve the environment.

Employee Communications
We continually keep employees informed about environmental issues and encourage them to participate in environmental initiatives. Here are some of the things we do:

• Produce a "Green" issue of our company magazine
• Host informational seminars
• Hold discussions at staff and affinity group meetings
• Recognize employee volunteer projects
• Create webcasts about employee initiatives

Volunteerism
Prudential CARES, our employee volunteerism program, encourages employees around the world to volunteer in the communities where they live and work.

Through company-sponsored volunteer programs such as Global Volunteer Day, our employees give their time to many environmental projects. Past projects include cleaning up southern California beaches, and removing litter at Mt. Fuji in Japan and Eastside Park in New York City.

We also support volunteer work by granting thousands of dollars to non-profit organizations involved in environmental projects such as rainwater reclamation and sustainable agriculture.

Sponsorship
We support other companies' educational and volunteer initiatives:

• In 2008, Prudential Financial co-sponsored the first Global Green Expo, including onsite exhibitions by New Jersey's Turtleback Zoo and Liberty Science Center.
• We sponsored The Star-Ledger newspaper's PSE&G Global Green Expo.
• We are a signatory to the Business Roundtable's Climate Resolve initiative, as well as a number of other environmental initiatives.

Green Space
In our home state of New Jersey, Prudential Financial and The Prudential Foundation have provided financial assistance for environmental projects, including:

• The creation of The Prudential Outdoor Learning Center, which provides thousands of teachers and students with environmental learning experiences
• A project to decontaminate and replant nearly 30 acres of parkland at Liberty State Park
• The restoration of Branch Brook Park by the Branch Brook Park Alliance

Green Investments

Prudential Financial has for more than 20 years been a major investor in alternative sources of energy and is at the forefront of efforts to construct "green" buildings. We also offer socially responsible investment funds to our customers.

Alternative Energy Investments
Prudential has invested more than $500 million in wind energy projects in seven states—California, Colorado, Kansas, Minnesota, New York, Texas, and Washington—making us one of the largest institutional investors in that area. Power generated from these projects can satisfy the electricity needs of almost half a million average U.S. households.

Green Buildings
Prudential Real Estate Investors® (PREI®) owns or has investments in more than two-dozen LEED-certified (Leadership Energy and Environmental Design) buildings and properties in development. It has recently commenced a pilot benchmarking program that will analyze 45 properties with a view toward making changes that will reduce energy consumption. If this program is successful, PREI will implement a similar program across its portfolio.

Socially Responsible Investment Funds
Pruco Life Insurance Company offers a variable universal life product that includes socially responsible investment choices. Through our joint ventures in China and Italy, we offer socially responsible funds such as the Everbright Pramerica New Growth Equity Fund and UBI Pramerica Azionario Etico (UBI Pramerica Ethical Equity Fund).*

A Commodity Index with an Environmental Focus
Recently, Prudential Bache Commodities announced the introduction of the Bache Commodity Green Index^SM, a multi-faceted approach to holding commodities and materials needed in the production of sustainable energy and the reduction of climate change.

*Funds are not registered or available in the U.S.

Insurance Principles

A large number of homogenous units: A large number of insurance policies are provided for individual members. Insurance given against a vehicle to millions or some other insurances the existence of a large number of people allows the insuring giving companies to benefit from "law of large numbers" which is described as a result that is performed by repeating the same experiment continuously. The law of large numbers has affected a large number of states which has increased a large number of exposure units. Whereas the actual results are increasing that are likely to become to the expected proportions.

Lloyd's of London is famous for giving insurance for the health or life of the actors, underwriters, sports personality and many more. Larger commercial properties have certain polices that may insure exceptional properties which has no homogenous exposure units. Many homogenous exposure units are considered to be insurable.

Calculable Loss: This category consists of two elements one is known as attendant cost and the other is the probability of loss. Probability of loss is driven from experiment and observation of a person's loss while the attendant cost has more to do with a person who holds his chattels and a copy of insurance policy and claims a property under the policy which retains an object or the amount of loss recoverable as a result of the claim.

Affordable Premium: Insurance will not be sold if it is too high, which results to a premium which is large compared to the amount that is offered against protection or the cost of the event is too high. Moreover the premium should not be so high that it would affect a loss to the insurer. If there are no chances of loss then the transaction would be in form of insurance.

Large Loss: This depends on the size of a loss. Insurance premiums have to cover both cost of issuing and the expected cost of losses and also adjusting the losses as well as the administrative policy. The insurance premiums supplies the capital that is needed by assure that is given by the insurer who will be able to pay the claims.

Accidental Loss: Insurance will be given to a person during an accident when the person proves it to be real. In this case if there is a loss in the in an ordinary business then the owner is not liable to be paid the insurance.

Definite Loss: In case of a sudden demise of a person, the members are liable to get the insurance. The other factors that meet these criteria are in case of an accident or workers who are injured at the work places. Similarly, if one has to claim insurance then he has to prove the insurance company about the loss n which the time, place and the loss of the person are taken under consideration. Whereas in case of an occupational disease a person cannot claim for insurance benefits, the reason behind this is occupational disease may involve prolong time, place or cause which is identifiable.