Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Partner #2 Age 47 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
48
$72,113
$72,113
$0
$10,000,000
13956.30%
$20,511
2
49
$72,113
$144,226
$0
$10,000,000
1028.65%
$43,459
3
50
$72,113
$216,339
$0
$10,000,000
380.33%
$66,559
4
51
$72,113
$288,452
$0
$10,000,000
212.46%
$89,151
5
52
$72,113
$360,565
$0
$10,000,000
141.59%
6
53
$72,113
$432,678
$0
$10,000,000
7
54
$72,113
$504,791
$0
8
55
$72,113
$576,904
9
56
$72,113
$649,017
10
57
$72,113
11
58
12
59
13
Summary at Age 100 Net Death Benefit
IRR
$145,575
$9,947,381
49229.16%
$63,969
$636,019
$9,925,331
1996.40%
$130,528
$1,158,970
$9,935,488
608.24%
$219,679
$1,715,968
$9,979,692
306.54%
$112,200
$331,880
$2,309,519
$10,060,149
190.64%
103.73%
$136,468
$468,348
$2,941,769
$10,179,305
132.42%
$10,000,000
80.68%
$162,056
$630,404
$3,666,904
$10,340,046
98.54%
$0
$10,000,000
65.30%
$163,833
$794,236
$3,928,442
$10,544,784
76.84%
$0
$10,000,000
54.38%
$165,610
$959,846
$4,204,687
$10,764,329
61.96%
$721,130
$59,611
$10,000,000
46.26%
$167,031
$1,126,878
$4,496,907
$10,999,749
51.24%
$72,113
$793,243
$62,722
$10,000,000
40.03%
$169,164
$1,296,041
$4,876,154
$11,322,296
43.39%
$72,113
$865,356
$65,833
$10,000,000
35.11%
$170,230
$1,466,271
$5,220,425
$11,666,567
37.38%
60
$72,113
$937,469
$68,945
$10,000,000
31.13%
$85,826
$1,552,097
$3,723,184
$6,357,296
22.89%
14
61
$72,113
$1,009,582
$72,056
$10,000,000
27.85%
$0
$1,552,097
$2,148,531
$6,175,160
19.61%
15
62
$72,113
$1,081,695
$75,167
$10,000,000
25.11%
$0
$1,552,097
$2,369,100
$5,983,918
16.98%
16
63
$72,113
$1,153,808
$78,279
$10,000,000
22.79%
$0
$1,552,097
$2,609,490
$5,783,114
14.83%
17
64
$72,113
$1,225,921
$81,390
$10,000,000
20.81%
$0
$1,552,097
$2,871,560
$5,572,270
13.03%
18
65
$72,113
$1,298,034
$84,501
$10,000,000
19.08%
$0
$1,552,097
$3,157,325
$5,350,883
11.50%
19
66
$72,113
$1,370,147
$87,613
$10,000,000
17.59%
$420,000
$1,132,097
$3,025,782
$4,695,453
10.25%
20
67
$72,113
$1,442,260
$90,724
$10,000,000
16.27%
$420,000
$712,097
$2,898,446
$4,594,794
10.07%
21
68
$72,113
$1,514,373
$93,835
$10,000,000
15.10%
$420,000
$292,097
$2,773,658
$4,491,910
9.94%
22
69
$72,113
$1,586,486
$137,525
$10,000,000
14.06%
$420,000
$127,903
$2,651,682
$4,386,274
9.84%
23
70
$72,113
$1,658,599
$184,780
$10,000,000
13.13%
$420,000
$547,903
$2,533,216
$4,277,793
9.76%
24
71
$72,113
$1,730,712
$233,122
$10,000,000
12.29%
$420,000
$967,903
$2,419,054
$4,166,398
9.70%
25
72
$72,113
$1,802,825
$286,936
$10,000,000
11.54%
$420,000
$1,387,903
$2,311,540
$3,929,252
9.56%
26
73
$72,113
$1,874,938
$344,278
$10,000,000
10.85%
$420,000
$1,807,903
$2,212,403
$3,674,570
9.43%
27
74
$72,113
$1,947,051
$405,149
$10,000,000
10.22%
$420,000
$2,227,903
$2,123,919
$3,401,823
9.32%
28
75
$72,113
$2,019,164
$469,548
$10,000,000
9.65%
$420,000
$2,647,903
$2,048,700
$3,110,493
9.23%
29
76
$72,113
$2,091,277
$537,474
$10,000,000
9.13%
$420,000
$3,067,903
$1,989,883
$2,800,215
9.16%
30
77
$72,113
$2,163,390
$602,451
$10,000,000
8.64%
$420,000
$3,487,903
$1,944,602
$2,810,262
9.26%
31
78
$72,113
$2,235,503
$668,486
$10,000,000
8.20%
$420,000
$3,907,903
$1,914,366
$2,838,986
9.36%
32
79
$72,113
$2,307,616
$737,486
$10,000,000
7.78%
$420,000
$4,327,903
$1,900,811
$2,888,248
9.46%
33
80
$72,113
$2,379,729
$809,451
$10,000,000
7.40%
$420,000
$4,747,903
$1,905,666
$2,960,015
9.55%
34
81
$72,113
$2,451,842
$874,871
$10,000,000
7.04%
$420,000
$5,167,903
$1,930,665
$3,056,268
9.63%
35
82
$72,113
$2,523,955
$951,928
$10,000,000
6.71%
$420,000
$5,587,903
$1,975,936
$3,177,305
9.71%
36
83
$72,113
$2,596,068
$1,028,109
$10,000,000
6.40%
$420,000
$6,007,903
$2,042,586
$3,324,467
9.78%
37
84
$72,113
$2,668,181
$1,117,951
$10,000,000
6.11%
$420,000
$6,427,903
$2,131,534
$3,498,900
9.85%
38
85
$72,113
$2,740,294
$1,197,796
$10,000,000
5.84%
$420,000
$6,847,903
$2,242,994
$3,701,022
9.91%
Total Net Outlay Cash Surr Value $20,511
Policy Details Total Net Outlay Cash Surr Val Net Death Benefit IRR at Life Expetancy
Non-Financed Policy $3,821,989 $0 $10,000,000 3.19%
Financed Policy $13,147,903 $10,749,456 $10,749,456 10.29%
IRR at Life Expectancy 12.00%
10.29% 10.00%
8.00%
6.00%
4.00%
3.19%
2.00%
0.00%
Non-Financed Policy
Financed Policy
Net Outlay and Death Benefit at Life Expectancy $14,000,000
$13,147,903
$12,000,000
$10,749,456 $10,000,000 $10,000,000
$8,000,000
Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Partner #2 Age 47 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
86
$72,113
$2,812,407
$1,278,833
$10,000,000
5.59%
$420,000
$7,267,903
40
87
$72,113
$2,884,520
$1,360,954
$10,000,000
5.35%
$420,000
41
88
$72,113
$2,956,633
$1,415,685
$10,000,000
5.12%
42
89
$72,113
$3,028,746
$1,470,566
$10,000,000
4.91%
43
90
$72,113
$3,100,859
$1,507,586
$10,000,000
44
91
$72,113
$3,172,972
$1,542,897
$10,000,000
45
92
$72,113
$3,245,085
$1,556,669
46
93
$72,113
$3,317,198
$1,584,455
47
94
$72,113
$3,389,311
48
95
$72,113
49
96
$72,113
50
97
51
98
52 53
Summary at Age 100 Net Death Benefit
IRR
$2,375,830
$3,929,844
9.96%
$7,687,903
$2,530,932
$4,186,512
10.01%
$420,000
$8,107,903
$2,706,778
$4,469,653
10.05%
$420,000
$8,527,903
$2,900,580
$4,776,571
10.09%
4.71%
$420,000
$8,947,903
$3,108,735
$5,103,732
10.12%
4.52%
$420,000
$9,367,903
$3,325,746
$5,445,622
10.14%
$10,000,000
4.34%
$420,000
$9,787,903
$3,607,659
$5,410,620
10.13%
$10,000,000
4.17%
$420,000
$10,207,903
$3,978,034
$5,416,795
10.13%
$1,585,597
$10,000,000
4.01%
$420,000
$10,627,903
$4,468,627
$5,490,414
10.13%
$3,461,424
$1,556,206
$10,000,000
3.85%
$420,000
$11,047,903
$5,120,973
$5,666,110
10.13%
$3,533,537
$1,467,744
$10,000,000
3.71%
$420,000
$11,467,903
$5,984,398
$5,984,398
10.14%
$72,113
$3,605,650
$1,337,883
$10,000,000
3.57%
$420,000
$11,887,903
$6,966,829
$6,966,829
10.18%
$72,113
$3,677,763
$1,106,783
$10,000,000
3.44%
$420,000
$12,307,903
$8,079,886
$8,079,886
10.22%
99
$72,113
$3,749,876
$711,148
$10,000,000
3.31%
$420,000
$12,727,903
$9,336,191
$9,336,191
10.26%
100
$72,113
$3,821,989
$0
$10,000,000
3.19%
$420,000
$13,147,903
$10,749,456
$10,749,456
10.29%
Total Net Outlay Cash Surr Value
Policy Details
Non-Financed Policy
Financed Policy
$6,000,000
$4,000,000
$2,000,000
*For illustrative purposes only. Actual results will vary. Please consult your tax advisor and attorney for all matters of tax and legal nature.
$0
Total Net Outlay
Cash Surr Val
$2,000,000
$4,000,000
$3,821,989
$6,000,000
Non-Financed Policy
Financed Policy