Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Partner #1 Age 51 Male, Preferred Product: GUL VS. IUL @ 6.5%
Non-Financed Policy
Financed Policy
Year
Age
Annual Net Outlay
Total Net Outlay
Cash Surr Val
Net Death Benefit
IRR
Annual Net Outlay
1
52
$86,180
$86,180
$0
$10,000,000
11656.16%
$23,499
2
53
$86,180
$172,360
$0
$10,000,000
928.36%
$49,789
3
54
$86,180
$258,540
$0
$10,000,000
350.25%
$76,254
4
55
$86,180
$344,720
$0
$10,000,000
197.20%
$102,138
5
56
$86,180
$430,900
$0
$10,000,000
131.87%
6
57
$86,180
$517,080
$0
$10,000,000
7
58
$86,180
$603,260
$0
8
59
$86,180
$689,440
9
60
$86,180
$775,620
10
61
$86,180
11
62
12 13
Summary at Age 100 Net Death Benefit
IRR
$160,740
$9,933,591
42881.18%
$73,288
$715,942
$9,900,444
1849.40%
$149,542
$1,306,416
$9,902,469
572.34%
$251,680
$1,934,167
$9,941,671
290.00%
$128,544
$380,224
$2,602,073
$10,020,928
180.64%
96.73%
$156,347
$536,571
$3,313,542
$10,143,648
125.44%
$10,000,000
75.25%
$185,662
$722,234
$4,129,155
$10,313,612
93.24%
$0
$10,000,000
60.88%
$187,698
$909,932
$4,413,504
$10,533,961
72.61%
$0
$10,000,000
50.66%
$189,734
$1,099,666
$4,714,365
$10,770,822
58.46%
$861,800
$71,429
$10,000,000
43.04%
$191,363
$1,291,028
$5,033,483
$11,025,940
48.26%
$86,180
$947,980
$73,352
$10,000,000
37.20%
$193,805
$1,484,834
$5,451,618
$11,380,075
40.84%
63
$86,180
$1,034,160
$75,275
$10,000,000
32.58%
$195,027
$1,679,860
$5,828,939
$11,757,396
35.15%
64
$86,180
$1,120,340
$77,198
$10,000,000
28.84%
$98,328
$1,778,188
$4,100,571
$5,826,668
19.38%
14
65
$86,180
$1,206,520
$79,121
$10,000,000
25.75%
$0
$1,778,188
$2,282,792
$5,618,003
16.39%
15
66
$86,180
$1,292,700
$81,044
$10,000,000
23.18%
$0
$1,778,188
$2,521,065
$5,398,903
14.00%
16
67
$86,180
$1,378,880
$82,967
$10,000,000
21.00%
$0
$1,778,188
$2,781,393
$5,168,848
12.04%
17
68
$86,180
$1,465,060
$84,890
$10,000,000
19.14%
$0
$1,778,188
$3,065,913
$4,927,291
10.38%
18
69
$86,180
$1,551,240
$86,815
$10,000,000
17.52%
$0
$1,778,188
$3,377,476
$4,857,126
9.32%
19
70
$86,180
$1,637,420
$122,184
$10,000,000
16.11%
$420,000
$1,358,188
$3,275,204
$4,764,623
9.18%
20
71
$86,180
$1,723,600
$160,769
$10,000,000
14.87%
$420,000
$938,188
$3,176,764
$4,669,730
9.08%
21
72
$86,180
$1,809,780
$217,492
$10,000,000
13.78%
$420,000
$518,188
$3,083,952
$4,467,167
8.86%
22
73
$86,180
$1,895,960
$280,733
$10,000,000
12.80%
$420,000
$98,188
$2,998,221
$4,249,272
8.68%
23
74
$86,180
$1,982,140
$348,782
$10,000,000
11.93%
$420,000
$321,812
$2,921,384
$4,015,433
8.53%
24
75
$86,180
$2,068,320
$421,639
$10,000,000
11.14%
$420,000
$741,812
$2,855,622
$3,765,138
8.40%
25
76
$86,180
$2,154,500
$499,303
$10,000,000
10.43%
$420,000
$1,161,812
$2,803,615
$3,498,062
8.29%
26
77
$86,180
$2,240,680
$574,301
$10,000,000
9.79%
$420,000
$1,581,812
$2,763,038
$3,505,219
8.42%
27
78
$86,180
$2,326,860
$646,505
$10,000,000
9.20%
$420,000
$2,001,812
$2,735,438
$3,528,492
8.55%
28
79
$86,180
$2,413,040
$729,071
$10,000,000
8.66%
$420,000
$2,421,812
$2,722,319
$3,569,580
8.66%
29
80
$86,180
$2,499,220
$815,824
$10,000,000
8.17%
$420,000
$2,841,812
$2,725,313
$3,630,332
8.77%
30
81
$86,180
$2,585,400
$896,909
$10,000,000
7.72%
$420,000
$3,261,812
$2,746,121
$3,712,668
8.88%
31
82
$86,180
$2,671,580
$988,133
$10,000,000
7.30%
$420,000
$3,681,812
$2,784,689
$3,816,676
8.97%
32
83
$86,180
$2,757,760
$1,071,409
$10,000,000
6.92%
$420,000
$4,101,812
$2,842,058
$3,943,601
9.06%
33
84
$86,180
$2,843,940
$1,169,457
$10,000,000
6.56%
$420,000
$4,521,812
$2,919,124
$4,094,542
9.14%
34
85
$86,180
$2,930,120
$1,257,291
$10,000,000
6.23%
$420,000
$4,941,812
$3,016,215
$4,270,011
9.22%
35
86
$86,180
$3,016,300
$1,346,686
$10,000,000
5.92%
$420,000
$5,361,812
$3,132,400
$4,469,204
9.28%
36
87
$86,180
$3,102,480
$1,435,944
$10,000,000
5.63%
$420,000
$5,781,812
$3,268,501
$4,693,170
9.34%
37
88
$86,180
$3,188,660
$1,526,453
$10,000,000
5.36%
$420,000
$6,201,812
$3,423,344
$4,940,866
9.40%
38
89
$86,180
$3,274,840
$1,599,047
$10,000,000
5.10%
$420,000
$6,621,812
$3,594,676
$5,210,133
9.44%
Total Net Outlay Cash Surr Value $23,499
Policy Details Total Net Outlay Cash Surr Val Net Death Benefit IRR at Life Expetancy
Non-Financed Policy $4,222,820 $0 $10,000,000 3.12%
Financed Policy $11,241,812 $10,412,504 $10,412,504 9.71%
IRR at Life Expectancy 12.00%
9.71%
10.00%
8.00%
6.00%
4.00%
3.12%
2.00%
0.00%
Non-Financed Policy
Financed Policy
Net Outlay and Death Benefit at Life Expectancy $14,000,000
$12,000,000
$11,241,812 $10,000,000
$10,000,000
$8,000,000
$6,000,000
$10,412,504
Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Partner #1 Age 51 Male, Preferred Product: GUL VS. IUL @ 6.5%
Non-Financed Policy
Financed Policy
Year
Age
Annual Net Outlay
Total Net Outlay
Cash Surr Val
Net Death Benefit
IRR
Annual Net Outlay
39
90
$86,180
$3,361,020
$1,690,343
$10,000,000
4.87%
$420,000
$7,041,812
40
91
$86,180
$3,447,200
$1,760,726
$10,000,000
4.64%
$420,000
41
92
$86,180
$3,533,380
$1,748,478
$10,000,000
4.43%
42
93
$86,180
$3,619,560
$1,732,651
$10,000,000
4.24%
43
94
$86,180
$3,705,740
$1,689,394
$10,000,000
44
95
$86,180
$3,791,920
$1,616,548
$10,000,000
45
96
$86,180
$3,878,100
$1,486,719
46
97
$86,180
$3,964,280
$1,370,873
47
98
$86,180
$4,050,460
48
99
$86,180
49
100
$86,180
Summary at Age 100 Net Death Benefit
IRR
$3,779,543
$5,498,079
9.48%
$7,461,812
$3,973,373
$5,800,129
9.52%
$420,000
$7,881,812
$4,223,116
$5,777,274
9.50%
$420,000
$8,301,812
$4,548,736
$5,789,300
9.50%
4.05%
$420,000
$8,721,812
$4,977,200
$5,858,435
9.49%
3.87%
$420,000
$9,141,812
$5,543,852
$6,014,089
9.50%
$10,000,000
3.71%
$420,000
$9,561,812
$6,290,816
$6,290,816
9.51%
$10,000,000
3.55%
$420,000
$9,981,812
$7,140,677
$7,140,677
9.57%
$1,115,206
$10,000,000
3.40%
$420,000
$10,401,812
$8,103,480
$8,103,480
9.62%
$4,136,640
$697,915
$10,000,000
3.26%
$420,000
$10,821,812
$9,190,138
$9,190,138
9.67%
$4,222,820
$0
$10,000,000
3.12%
$420,000
$11,241,812
$10,412,504
$10,412,504
9.71%
Total Net Outlay Cash Surr Value
*For illustrative purposes only. Actual results will vary. Please consult your tax advisor and attorney for all matters of tax and legal nature.
Policy Details
Non-Financed Policy
Financed Policy
$4,000,000
$2,000,000
$0
Total Net Outlay
Cash Surr Val
$2,000,000
$4,000,000
$4,222,820 $6,000,000
Non-Financed Policy
Financed Policy