- column
- PERSONAL FINANCIAL PLANNING
Life Insurance Funding Analysis Exhibit
Please note: This item is from our archives and was published in 2014. It is provided for historical reference. The content may be out of date and links may no longer function.
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John Q. Sample |
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Life Insurance Funding Analysis |
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March 2010 |
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XYZ Life Insurance Co. Universal Life Policy | ||
Current death benefit: | $3,000,000 |
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Owner: | 1998 ILIT |
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Policy date: | 02/01/98 |
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Policy number: | XX123 |
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Policy loan amount | None |
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Cash value as of 02/05/10: | $507,720 |
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Cost basis: | $1,040,724 |
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Policy current/minimum interest rate: | 4.5%/4.5%* |
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Estimated internal rate of return (IRR) if insured had died in 2009: | 15.25% |
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Estimated level premiums (provided*): |
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Current (to age 86) | $85,000 |
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To support policy to age 90 | $113,000 |
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To support policy to age 95 | $131,000 |
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*Per illustrations run July–Sept. 09 |
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Duration of policy with scheduled premiums | Lapse on 6/1/19 |
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Original estimated duration of policy | Lapse on 12/1/20 |
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Duration of policy with 0 future premiums | Lapse on 2/1/14 |
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* As-sold illustration assumes a 6.5% crediting rate. |
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John Q. Sample |
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Date of Birth | 7/1/1932 |
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Age as of March 2010 | 77 |
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Life expectancies | As of Jan. 2010 report |
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Company A | 74 months, 6.2 years |
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Company B | 79–123 months, 6.6–10.3 years |
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Note: See full report from company |
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This exhibit accompanies the Personal Financial Planning column in the June 2014 issue of The Tax Adviser.