Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Valued Client Spouse Age 41 Female, Preferred Plus NT Product: IUL @ 7.5%
Non-Financed Policy
Financed Policy
Year
Age
Annual Net Outlay
Total Net Outlay
Cash Surr Val
Net Death Benefit
IRR
Annual Net Outlay
1
42
$35,515
$35,515
$0
$7,500,000
21330.67%
$36,818
2
43
$35,515
$71,030
$0
$7,500,000
1309.33%
3
44
$35,515
$106,545
$0
$7,500,000
458.68%
4
45
$35,515
$142,060
$0
$7,500,000
5
46
$35,515
$177,575
$0
6
47
$35,515
$213,090
7
48
$35,515
8
49
9
50
10 11
Total Net Outlay Cash Surr Value
Summary at Age 100 Net Death Benefit
IRR
$36,818
$60,988
$7,823,157
21463.56%
$36,818
$73,635
$334,693
$7,823,157
1313.84%
$36,818
$110,453
$622,737
$7,823,157
459.91%
251.15%
$41,814
$152,267
$948,980
$7,823,157
251.53%
$7,500,000
165.83%
$47,337
$199,604
$1,297,614
$7,823,157
165.72%
$0
$7,500,000
121.05%
$49,967
$249,571
$1,392,248
$7,823,157
120.58%
$248,605
$0
$7,500,000
93.92%
$52,597
$302,167
$1,493,311
$7,823,157
93.18%
$35,515
$284,120
$0
$7,500,000
76.00%
$55,226
$357,394
$1,601,548
$7,823,157
75.04%
$35,515
$319,635
$0
$7,500,000
63.35%
$57,856
$415,250
$1,717,856
$7,823,157
62.20%
51
$35,515
$355,150
$27,810
$7,500,000
53.99%
$60,486
$475,736
$1,843,230
$7,823,157
52.69%
52
$35,515
$390,665
$27,872
$7,500,000
46.79%
$0
$475,736
$618,257
$7,757,411
45.42%
12
53
$35,515
$426,180
$27,935
$7,500,000
41.13%
$0
$475,736
$693,132
$7,688,378
39.74%
13
54
$35,515
$461,695
$27,997
$7,500,000
36.57%
$0
$475,736
$774,947
$7,615,894
35.20%
14
55
$35,515
$497,210
$28,059
$7,500,000
32.81%
$0
$475,736
$864,271
$7,539,785
31.50%
15
56
$35,515
$532,725
$28,121
$7,500,000
29.66%
$0
$475,736
$961,718
$7,459,871
28.42%
16
57
$35,515
$568,240
$28,183
$7,500,000
27.01%
$0
$475,736
$1,067,864
$7,375,960
25.84%
17
58
$35,515
$603,755
$28,245
$7,500,000
24.73%
$0
$475,736
$1,183,457
$7,287,855
23.65%
18
59
$35,515
$639,270
$28,308
$7,500,000
22.76%
$0
$475,736
$1,309,277
$7,195,344
21.76%
19
60
$35,515
$674,785
$28,370
$7,500,000
21.04%
$0
$475,736
$1,446,173
$7,098,208
20.12%
20
61
$35,515
$710,300
$28,432
$7,500,000
19.53%
$0
$475,736
$1,594,997
$6,996,215
18.68%
21
62
$35,515
$745,815
$28,494
$7,500,000
18.20%
$0
$475,736
$1,756,673
$6,889,122
17.41%
22
63
$35,515
$781,330
$28,253
$7,500,000
17.00%
$0
$475,736
$1,932,193
$6,776,674
16.28%
23
64
$35,515
$816,845
$28,315
$7,500,000
15.93%
$0
$475,736
$2,122,614
$6,658,605
15.26%
24
65
$35,515
$852,360
$39,394
$7,500,000
14.97%
$0
$475,736
$2,329,160
$6,534,631
14.34%
25
66
$35,515
$887,875
$51,295
$7,500,000
14.10%
$335,000
$140,736
$2,201,501
$6,052,709
13.53%
26
67
$35,515
$923,390
$75,171
$7,500,000
13.31%
$335,000
$194,264
$2,075,423
$5,546,691
12.82%
27
68
$35,515
$958,905
$100,724
$7,500,000
12.59%
$335,000
$529,264
$1,952,176
$5,015,372
12.17%
28
69
$35,515
$994,420
$127,957
$7,500,000
11.93%
$335,000
$864,264
$1,832,938
$4,457,487
11.60%
29
70
$35,515
$1,029,935
$156,870
$7,500,000
11.33%
$335,000
$1,199,264
$1,719,157
$3,871,708
11.08%
30
71
$35,515
$1,065,450
$185,444
$7,500,000
10.77%
$335,000
$1,534,264
$1,612,634
$3,256,640
10.60%
31
72
$35,515
$1,100,965
$210,789
$7,500,000
10.25%
$335,000
$1,869,264
$1,515,586
$2,610,818
10.17%
32
73
$35,515
$1,136,480
$237,369
$7,500,000
9.78%
$335,000
$2,204,264
$1,430,709
$2,380,677
10.08%
33
74
$35,515
$1,171,995
$265,186
$7,500,000
9.33%
$335,000
$2,539,264
$1,358,477
$2,193,304
10.05%
34
75
$35,515
$1,207,510
$294,238
$7,500,000
8.92%
$335,000
$2,874,264
$1,299,120
$1,996,609
10.02%
35
76
$35,515
$1,243,025
$321,000
$7,500,000
8.54%
$335,000
$3,209,264
$1,255,033
$1,790,285
10.00%
36
77
$35,515
$1,278,540
$360,659
$7,500,000
8.18%
$335,000
$3,544,264
$1,225,943
$1,800,953
10.09%
37
78
$35,515
$1,314,055
$402,012
$7,500,000
7.84%
$335,000
$3,879,264
$1,213,750
$1,831,423
10.18%
38
79
$35,515
$1,349,570
$440,167
$7,500,000
7.53%
$335,000
$4,214,264
$1,220,447
$1,883,892
10.26%
Policy Details Total Net Outlay Cash Surr Val Net Death Benefit IRR at Life Expetancy
Non-Financed Policy $2,095,385 $0 $7,500,000 3.70%
Financed Policy $11,249,264 $12,623,783 $12,623,783 11.00%
IRR at Life Expectancy 12.00%
11.00%
10.00%
8.00%
6.00%
3.70% 4.00%
2.00%
0.00%
Non-Financed Policy
Financed Policy
Net Outlay and Death Benefit at Life Expectancy $14,000,000
$12,623,783 $12,000,000
$11,249,264
$10,000,000
Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Valued Client Spouse Age 41 Female, Preferred Plus NT Product: IUL @ 7.5%
Non-Financed Policy
Financed Policy
Year
Age
Annual Net Outlay
Total Net Outlay
Cash Surr Val
Net Death Benefit
IRR
Annual Net Outlay
39
80
$35,515
$1,385,085
$484,416
$7,500,000
7.23%
$335,000
$4,549,264
40
81
$35,515
$1,420,600
$530,340
$7,500,000
6.95%
$335,000
41
82
$35,515
$1,456,115
$575,103
$7,500,000
6.69%
$335,000
42
83
$35,515
$1,491,630
$620,539
$7,500,000
6.44%
43
84
$35,515
$1,527,145
$674,248
$7,500,000
6.21%
44
85
$35,515
$1,562,660
$721,474
$7,500,000
45
86
$35,515
$1,598,175
$769,209
46
87
$35,515
$1,633,690
$846,171
47
88
$35,515
$1,669,205
48
89
$35,515
49
90
$35,515
50
91
51 52
Summary at Age 100 Net Death Benefit
IRR
$1,248,176
$1,960,716
10.33%
$4,884,264
$1,299,244
$2,064,431
10.41%
$5,219,264
$1,375,959
$2,197,581
10.47%
$335,000
$5,554,264
$1,480,716
$2,362,804
10.53%
$335,000
$5,889,264
$1,616,134
$2,562,984
10.59%
5.99%
$335,000
$6,224,264
$1,784,990
$2,801,172
10.65%
$7,500,000
5.78%
$335,000
$6,559,264
$1,990,016
$3,080,383
10.69%
$7,500,000
5.58%
$335,000
$6,894,264
$2,234,126
$3,403,829
10.74%
$924,077
$7,500,000
5.39%
$335,000
$7,229,264
$2,520,272
$3,774,771
10.78%
$1,704,720
$990,738
$7,500,000
5.21%
$335,000
$7,564,264
$2,851,265
$4,196,325
10.82%
$1,740,235
$1,069,097
$7,500,000
5.04%
-$335,000
$7,899,264
$3,229,797
$4,671,495
10.85%
$35,515
$1,775,750
$1,133,698
$7,500,000
4.88%
-$335,000
$8,234,264
$3,658,278
$5,202,999
10.88%
92
$35,515
$1,811,265
$1,114,557
$7,500,000
4.72%
-$335,000
$8,569,264
$4,164,141
$5,488,695
10.88%
93
$35,515
$1,846,780
$1,093,608
$7,500,000
4.57%
-$335,000
$8,904,264
$4,761,392
$5,826,702
10.89%
53
94
$35,515
$1,882,295
$1,070,841
$7,500,000
4.43%
-$335,000
$9,239,264
$5,467,710
$6,229,827
10.90%
54
95
$35,515
$1,917,810
$1,015,014
$7,500,000
4.30%
-$335,000
$9,574,264
$6,304,597
$6,713,861
10.91%
55
96
$35,515
$1,953,325
$924,205
$7,500,000
4.17%
-$335,000
$9,909,264
$7,291,142
$7,291,142
10.92%
56
97
$35,515
$1,988,840
$847,870
$7,500,000
4.04%
-$335,000
$10,244,264
$8,403,750
$8,403,750
10.94%
57
98
$35,515
$2,024,355
$683,775
$7,500,000
3.92%
-$335,000
$10,579,264
$9,654,478
$9,654,478
10.96%
58
99
$35,515
$2,059,870
$418,981
$7,500,000
3.81%
-$335,000
$10,914,264
$11,056,418
$11,056,418
10.99%
59
100
$35,515
$2,095,385
$0
$7,500,000
3.70%
-$335,000
$11,249,264
$12,623,783
$12,623,783
11.00%
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
$8,000,000
Financed Policy
$7,500,000
$6,000,000
$4,000,000
$2,000,000
$0
Total Net Outlay
Cash Surr Val
$2,000,000
$2,095,385
$4,000,000
Non-Financed Policy
Financed Policy