Press Releases

Baltimore Life Expands Wealth Transfer Product Line

For Immediate Release

BALTIMORE, MD, JANUARY 15, 2010—The Baltimore Life Insurance Company is introducing a new product to augment the company’s wealth transfer portfolio. Generation Legacy combines life insurance and annuity elements into one product that accepts funds from both non-qualified annuities and qualified plans.

To be launched in February, Generation Legacy operates much like Baltimore Life’s current Single Premium Whole Life Insurance product, but it broadens the wealth transfer opportunity by offering a tax efficient way of using non-qualified annuities and qualified assets to fund an income tax-free death benefit to one’s heirs*. Generation Legacy can significantly increase the money passed on to the next generation. Plus, the product’s death benefit passes outside of probate, minimizing costs and maintaining privacy.

This new product accomplishes these goals through a unique set of features and processes:

  • Non-qualified annuities and qualified funds are used for a 1035 exchange or rolled over to a Single Premium Immediate Annuity (SPIA).
  • Rather than being taxed on the annuity all at once if transferred directly to a life insurance policy, an exchange or rollover to the SPIA allows the annuity’s taxable gain to be spread over each annual SPIA payout.
  • Annual SPIA payouts are directed to pay the premiums of a whole life insurance policy with generous guarantees and an income tax-free death benefit*.
  • SPIA payouts are made for 10 years for issue ages 60 to 74, or seven years for ages 75 to 80.

When the client dies, the beneficiary receives the life insurance policy death benefit and any scheduled unpaid SPIA payouts until the SPIA duration ends. However, the beneficiary may elect the commuted value of future unpaid SPIA payouts in a lump sum.

In addition, Generation Legacy offers clients several liquidity features. Cash value loans may be taken at any time from the life insurance policy, and partial surrenders of the life insurance policy’s cash value may be made at any time following the SPIA payout period. Accelerated Death Benefit Riders (where approved) allow the owner to receive part of the death benefit before their death if they are terminally ill, permanently confined to a nursing facility, need home health care, or require care from an adult day care center.

“Generation Legacy is one of the more innovative products in the market today,” said John Fleming, Baltimore Life’s Chief Marketing Officer. “Combined with our current Single Premium Whole Life product, Generation Legacy gives us a significant advantage in the wealth transfer market.”

* Based on current tax laws.


About Baltimore Life
Established in 1882, The Baltimore Life Insurance Company has served seven generations of policyholders. Today, Baltimore Life insures more than 300,000 individuals, families and businesses in communities all across America. Our products and services provide financial protection to the middle-income segment of the American population. Baltimore Life is licensed in 49 states and the District of Columbia. For more information, please visit www.baltlife.com or call 1.800.628.5433.

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