Broker Check

Circle of Wealth Disclosure

The Circle Of Wealth System, and Permanent Life Insurance

The Circle of Wealth System is a third-party software system used to graphically illustrate many of the features and benefits of fixed, permanent life insurance, and how it might be used as a financial solution for a client’s situation.

The Circle of Wealth System is owned by MoneyTrax, Inc., which is independent of the companies of National Life Group®.

National Life wants to make the following key points known to our clients and prospective clients who are shown this software by one of our agents:

  • The primary purposes for purchasing permanent life insurance is for the death benefit protection that it provides.
  • Life insurance policies must be adequately structured and funded to take advantage of the cash value features mentioned in the Circle of Wealth system. Life insurance policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy's cash value in early years. If excessive withdrawals are taken from a life insurance policy, it puts the policy at risk of lapsing, which would cause the loss of the policy, and would cause the withdrawals that exceeded the premiums paid into the policy to be taxable.
  • For permanent life insurance policies, the amount of cash available in the policy is typically less than the total premiums paid into the policy during the early years. This should be taken into consideration when planning on the use of a life insurance policy’s loan features.
  • All calculators are provided as a means to illustrate hypothetical financial principles. They should not be construed as a solicitation of any insurance, investment, or other financial product. Nor should these be considered financial advice. For advice concerning your own situation, please consult with a professional who is appropriately licensed to transact business and provide advice for the financial product being illustrated.
  • The information contained in this tool is not intended as tax or legal advice, and it may not be relied on for the purposes of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional tax or legal advisor.