All guarantees are based on the claims-paying ability of the issuer. 3 Life insurance policy cash values are accessed through withdrawals and policy loans. Loans and withdrawals may cause a permanent reduction of policy cash values and death benefits and negate any guarantees against lapse. Actual tax treatment depends on the method of receiving funds. Although loans are generally not taxable, there may be tax consequences if the policy lapses or is surrendered with a loan.
Withdrawals are generally taxable to the extent they exceed basis in the policy.
A MEC is generally created by paying too much into the policy, but it can also occur if you make certain changes to the policy. There is no guarantee that dollar cost averaging will assure a profit or protect your policy against loss in declining markets. Such a plan involves a continuous investment in securities regardless of fluctuating price levels for such securities. Before investing, consider your financial ability to continue your purchases through periods of low price levels. Ask your financial professional for more information or for an enrollment form.