Investment Feature

Planyour

Two reasons why you might want to invest within your GVUL policy:

Death Benefit Protection in retirement: You can structure your investment/savings contributions such that future policy charges for life insurance protection are paid out of the certificate’s cash value. We can calculate the annual contribution projected (but not guaranteed) to be sufficient to maintain a specified amount of life insurance. Simply contact Customer Relations department at 800-756-0124.
Tax Advantage
1. Power of Tax Deferral Example
2. Tax-Free Withdrawal of Cash Value (“cost recovery”): You can structure your GVUL certificate so that the contributions to your investment account, including earnings, can be withdrawn tax-free up to your certificate’s total Cost Basis (the sum of all premiums paid into the certificate less any prior nontaxable distributions)¹ . Simply contact Customer Relations at 800-756-0124 and request a “cost recovery” calculation.

Understanding Your Policy Cost Basis

Are you aware that you don’t have to die for your GVUL policy to have value! There is a living benefit to your policy in the form of an optional tax-advantaged investment feature².
GVUL cash value withdrawals are taxed under the “cost recovery rule,” which means that so long as certain premium limitations are followed, distributions are only taxed to the extent they exceed the investment in the policy (ie: Cost Basis). Cost basis includes not only the extra premium dollars you invest but also the aggregate premiums paid for the monthly cost of insurance going back to the first day you were enrolled in the plan. This includes not only the premiums paid by you but also the premiums paid by the County of Los Angeles. Nontaxable distributions reduce cost basis.

The premiums paid for the cost of life insurance and all optional investment contributions premiums are combined to create your aggregate cost basis.

Regardless of whether you are investing now or not, every month premiums are paid your cost basis increases! We will continue to track your cost basis for as long as you maintain your GVUL coverage.

Cost Basis = Total GVUL premiums paid, including premiums paid for life insurance protection and extra premiums contributed to the investment

Cash value = The sum of all additional premiums contributed for investment, plus any investment earnings on those investment premiums.

Tax Advantage = Cash value can be withdrawn tax-free, including earnings, as long as the amount withdrawn does not exceed the accumulated Cost Basis

Tax-Treatment of GVUL Premiums - Hypothetical Example Policy Issue Age: 40 / Death Benefit : $500,000 Extra Preminum for Investment: $125/month

Your Cost Basis offsets dollar for dollar
any gains in your cash value upon withdrawal.

How do I find my personal Basis:

Online at www.mylacountybenefits.com
Appears on your annual statement mailed in January
By calling customer service at 800-756-0124

Investing Separately

Investing with GVUL

Purchasing life insurance while investing separately.

All potential gains from the money invested are subject to tax. The life insurance premium is an expense only.

Example

To speak with a GVUL Benefits Specialist, call 800-756-0124,
Monday - Friday, 5:00 am - 5:00 pm PT

¹In general, participants may withdraw cash value equal to premiums paid without tax consequences. However, if the funding of the certificate exceeds certain limits, it will become a "modified endowment contract" (MEC) and become subject to "earnings first" taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans
taken before age 59½ will also generally apply. We will notify you if a contribution would cause your certificate to become a MEC. Withdrawals and loans reduce the death benefit and cash value, thereby diminishing the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age. Withdrawals are subject to an administrative fee of 2% of the amount withdrawn, not to exceed $25

²Earnings within your GVUL coverage grow income tax-free while the policy stays in force. Money allocated to the variable investment portfolios is subject to market risk, and when redeemed may be worth more or less than your original investment. Please consider your investment time horizon, tax rates, and the effect of fees and expenses, including any premium expense charge, when evaluating the benefit of GVUL tax deferral. See your Prospectus and Certificate for complete information.

³ In general, participants may withdraw cash value equal to premiums paid without tax consequences. However, if the funding of the certificate exceeds certain limits, it will become a “modified endowment contract” (MEC) and become subject to “earnings first” taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 59½ will also generally apply to MECs. We will notify you if a contribution would cause your certificate to become a MEC. Withdrawals and loans will reduce the death benefit and cash value and thereby diminish the ability of the cash value to serve as a source offunding for cost of insurance charges, which increase as you age. Withdrawals are subject to an administrative fee of 2% of the amount withdrawn, not to exceed $25. Outstanding loan amounts do not participate in the interest credited to the interest-bearing account and can have a permanent effect on certificate values and benefits. Upon surrender, lapse, or case termination, including those circumstances where termination of the group contract results intermination of individual certificates/policies, loans become withdrawals and may become taxable to the certificate owner.

Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. MetLife, its agents and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Please confer with their qualified legal, taxand accounting advisors as appropriate.

Prospectuses for Group Variable Universal Life insurance and its underlying portfolios can be obtained by calling (800) 756-0124. You should carefully read and consider the information in the prospectuses regarding the contract’s features, risks, charges and expenses, as well as the investment objectives, risks, policies and other information regarding the underlying portfolios prior to making any purchase or investment decisions. Product availability and features may vary by state. All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.

Group Variable Universal Life insurance has limitations. There is no guarantee that any of the variable options in this product will meet its stated goals or objectives. Cash value allocated to the variable investment options is subject to market fluctuations so that, when withdrawn or surrendered, it may be worth more or less than the amount of premiums paid.

Nothing in these materials is intended to be advice for a particular situation or individual. Please consult with your own advisors for such advice. Like most insurance policies, MetLife GVUL contains exclusions, limitations and terms for keeping it in force. MetLife can provide you with costs and complete details.

Investment Feature

Tax-Treatment of GVUL Premiums - Hypothetical Example Policy Issue Age: 40 / Death Benefit : $500,000 Extra Preminum for Investment: $125/month

Plan ahead