Retirees at Risk: Whole Life Insurance Cash Values Can Be Overlooked Source of Retirement...

Retirees at Risk: Whole Life Insurance Cash Values Can Be Overlooked Source of
Retirement Income

SPRINGFIELD, Mass., Sept. 17 /PRNewswire/ -- Nearly 45 percent of households
are "at risk" of not having enough to maintain their living standards in
retirement, according to the National Retirement Risk Index*, a special
project of the Center for Retirement Research at Boston College. The index
goes on to say, "explicitly including health care in the Index drives up the
share of households 'at risk' to 61 percent." But some retirees have
discovered a source of supplemental income that can help tide them over during
rough patches: their whole life insurance policies.

Many retirees and pre-retirees are counting, if necessary, on tapping the cash
value of their whole life insurance policies -- without tax or penalty -- to
see them through in a pinch**. Their policies' cash values, which are
guaranteed to grow, also can offer protection against the erosion of income
caused by rising inflation, declining interest rates, and higher income tax
rates.

"My whole life policy has always been the best value for the buck," said Jack
Leon, 79, a lawyer in San Antonio, TX who purchased coverage from
Massachusetts Mutual Life Insurance Co. (MassMutual) to provide a death
benefit to his loved ones. "I've always known that the cash value of my whole
life policy would grow, in good times and in bad. And I've always known that
cash is there if I need it in an emergency."

Dave Janca, 48, a software company owner from Orchard Park, NY agrees. He
purchased whole life insurance from MassMutual because of the permanent death
benefit for his family, and is comforted by the cash value that is building up
in his policy.

"It's nice to know that you have the ability to access the cash as you grow
older," said Janca. "Your investments may fluctuate with the markets. But the
value of whole life is predictable, it grows, and it's there if you need it.
To me, it's not just insurance. It's another planning vehicle."

Financial professionals say whole life insurance is particularly well-suited
for supplemental retirement planning as it creates flexibility that enables
policyholders to address their needs and circumstances as they change over
time.

"A policy's cash value enable you to ride out the unexpected, which is
inevitable, particularly as we age," said financial advisor Jason Jones, CLU,
ChFC, CFP, Capstone Financial Partners, a general agency of MassMutual. "Over
the years, my clients have tapped their whole life policies to pay for lots of
different needs -- medical care and elder care, to help a grandchild with
college tuition, and to pay for emergency home repairs, among other things."

"Moreover, whole life insurance can help preserve the value of retirement
accounts in a down market," said Jones. "Instead of drawing on or selling off
distressed investments for supplemental retirement income, the policyholder
can draw on the policy's cash value, leaving the retirement accounts to
recover their value over time."

"Guarantees are one of the many great aspects of whole life insurance," said
Tara Reynolds, corporate vice president, U.S. Insurance Group, MassMutual.
"The death benefit is guaranteed; the premiums are guaranteed, and growth of
the cash value is guaranteed. It's a piece of your financial plan that you
don't have to worry about."

While a whole life policy's cash value can be an effective way to supplement
retirement income, it is not recommended to access the cash in the policy for
non-emergency needs or desires, such as consumable goods or vacations. It also
is not advisable to tap the policy's cash value when the policyholder's top
priority is preserving the death benefit, such as when wealth transfer or
estate taxes are more important to the overall strategic financial plan.

As part of the company's commitment to bringing national attention to the
importance of planning and saving for retirement, MassMutual is the exclusive
national underwriter of Retirement Revolution: The New Reality(R), a
nationally broadcast special on PBS that premiered this week. The program
features deeply personal stories, new glimmers of hope and dramatic changes
people are making to help achieve their definition of a successful retirement.
The New Reality is the second installment of the Retirement Revolution(R)
series, which debuted last spring.

To learn more about how whole life insurance can help with retirement
planning, visit massmutual.com/life.

About MassMutual

Founded in 1851, MassMutual is a leading mutual life insurance company that is
run for the benefit of its members and participating policyholders. The
company has a long history of financial strength and strong performance, and
although dividends are not guaranteed, MassMutual has paid dividends to
eligible participating policyholders every year since the 1860s. With whole
life insurance as its foundation, MassMutual provides products to help meet
the financial needs of clients, such as life insurance, disability income
insurance, long term care insurance, retirement/401(k) plan services, and
annuities. In addition, the company's strong and growing network of financial
professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life
Insurance Company (MassMutual) and its affiliated companies and sales
representatives. MassMutual is headquartered in Springfield, Massachusetts and
its major affiliates include: Babson Capital Management LLC; Baring Asset
Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile
Trust Company; MassMutual International LLC; MML Investors Services, Inc.,
member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust
Company, FSB.

*crr.bc.edu/special_projects/national_retirement_risk_index.html

**Distributions under a policy (including cash dividends, withdrawals and
partial/full surrenders) are not subject to taxation up to the amount paid
into the policy (the cost basis). If the policy is a Modified Endowment
Contract, policy loans and/or distributions are taxable to the extent of gain
and are subject to a 10% tax penalty.
Access to cash values through borrowing, withdrawals or partial surrenders can
reduce the policy's cash value and death benefit, increase the chance the
policy will lapse, and may result in a tax liability if the policy terminates
before the death of the insured.

CONTACT:
Paula Tremblay
ptremblay@massmutual.com
413.744.0885

SOURCE MassMutual Financial Group

Paula Tremblay of MassMutual Financial Group, +1-413-744-0885,
ptremblay@massmutual.com