Surrender charges may apply on the surrender of life insurance policies.

Single Premium Immediate Annuities (SPIAs) are offered though an independent third party. Please check with the carrier for any changes and fee associated with the purchase. A SPIA is a life insurance policy with loads and charges. A SPIA product is used so the lump sum of the loan is put into the life insurance policy as a single pay premium.

Life insurance death benefit proceeds are generally excludable from the beneficiary's gross income for income tax purposes. There are a few exceptions, such as when a life insurance policy has been transferred for valuable consideration. Prospective purchases should consult their professional tax advisor.

Loans and withdrawals will reduce death benefit, cash surrender value, and may cause the policy to lapse. Lapse or surrender of a loan may cause the recognition of taxable income. Policies classified as modified endowment contracts may be subject to tax when a loan or withdrawal is made. Relative to annuities, a federal tax penalty of 10% may also apply if the loan withdrawn is taken prior to age 59 1/2.

Many states offer creditor protection for annuities and life insurance policies. Please consult with your financial professional for more information. Creditor protection is state specific. Also, assets transferred conveyance or in anticipation of litigation may be available to satisfy judgment. Please consult an advisor versed in this area.

Pivotal Financial Group, llc. does not give legal or tax advice, please consult your professional.