2025 Advanced Planning

Appendix/Disclosures

Tax and Legal
JR KATZ, LLC and its representatives do not provide legal, tax or accounting advice.  Any tax or legal references provided are for general informational purposes only, and should not be relied upon for legal, tax or accounting advice.  Clients of JR KATZ, LLC should obtain their own independent legal counsel and/or tax advice based on their specific circumstances.

Financial Information
The information and financial projections contained in these pages are not an indication of future performance.  The material and information is intended only for discussion purposes.  

Contractual
The financial illustrations and other statements within this document, as well as comments made by individuals, are not contractual obligations unless clearly stated as such in a separate contract or agreement.  This document does not constitute an offer or a contract.  Any life insurance or annuity contract entered into is between the policy owner and the insurance company, through the policy itself.  You should read any policy thoroughly.  This material is intended to provide general information and is not necessarily a complete description of all terms, exclusions and conditions applicable to products and services.  Contractual guarantees are dependent upon the solvency of the insurance company.

Assumptions
Demonstrations of life insurance performance are provided by life insurance carriers and are based on illustrated assumptions including risk classifications, policy charges, and investment returns/crediting rates.  Actual performance would most likely differ from illustrated assumptions. All projections are based on insurance company illustrations, which govern in the case of a discrepancy. The projections contained herein are as of a certain date. Insurance charges and crediting rates fluctuate over time. Values may change after a policy is issued and should be reviewed regularly.

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The investment return and principal value of the variable life policy are not guaranteed. Variable life sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the policy is surrendered.  Any guarantees offered are backed by the financial strength of the insurance company.  

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Private Placement Variable Universal Life Insurance (PPVUL) is a life insurance product made available to qualified purchasers who meet net income and net worth requirements. PPVUL is a long-term investment and may not be suitable for all investors. The policy's value will fluctuate based upon the performance of the underlying funds. Clients should be aware of the additional risks involved with investing in non-registered funds, including engaging in potentially riskier investment practices, charging higher fees, and imposing liquidity restrictions on assets.

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Split-Dollar Insurance is not an insurance policy; it is a method of paying for insurance coverage. A split-dollar plan is an arrangement between two parties that involves "splitting" the premium payments, cash values, ownership of the policy, and death benefits.  These arrangements are subject to Split Dollar Final Regulations that apply for purposes of federal income, employment, and gift taxes. Regulations provide that the tax treatment of split-dollar life insurance arrangements will be determined under one of two sets of rules, depending on who owns the policy.

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Buffer annuities are long-term investments. They have limitations, exclusions, charges, termination provisions and terms for keeping it in force and are not guaranteed by the broker/dealer, the insurance agency, the underwriter, or any affiliates of those entities from which they were purchased. All representations and contract guarantees, including the death benefit and annuity payout rates, are subject to the claims-paying ability and financial strength of the issuing insurance company. Because owner agrees to absorb all losses beyond a chosen buffer percentage, there is a risk of substantial loss of principal. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty

Diversification does not guarantee a profit or protect against a loss.

Securities offered through Lion Street Financial, LLC member FINRA/SIPC.  Lion Street Financial, LL is not affiliated with JR KATZ, LLC.

End Notes
(1)   Assuming withdrawals to basis and then switch to non-taxable loans. Withdrawals in excess of basis are taxed as gain. Interest does accrue on policy loans, and borrowing will reduce any death benefits paid out unless the loan is paid back to the policy.