Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Valued Client Age 43 Male, 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
44
$60,526
$60,526
$0
$10,000,000
16655.28%
$68,996
$68,996
2
45
$60,526
$121,052
$0
$10,000,000
1140.78%
$73,924
3
46
$60,526
$181,578
$0
$10,000,000
411.63%
$78,853
4
47
$60,526
$242,104
$0
$10,000,000
228.09%
5
48
$60,526
$302,630
$0
$10,000,000
6
49
$60,526
$363,156
$0
7
50
$60,526
$423,682
8
51
$60,526
$484,208
Summary at Age 100 Net Death Benefit
IRR
$96,336
$13,442,183
19666.80%
$142,920
$631,040
$13,442,183
1248.24%
$221,773
$1,201,772
$13,442,183
439.95%
$83,781
$305,553
$1,811,491
$13,442,183
240.86%
151.45%
$88,709
$394,263
$2,463,749
$13,442,183
158.62%
$10,000,000
110.85%
$93,637
$487,900
$2,638,836
$13,442,183
115.33%
$0
$10,000,000
86.11%
$98,566
$586,466
$2,827,181
$13,442,183
89.05%
$0
$10,000,000
69.70%
$103,494
$689,959
$3,029,705
$13,442,183
71.66%
Total Net Outlay Cash Surr Value
9
52
$60,526
$544,734
$0
$10,000,000
58.08%
$108,422
$798,382
$3,247,737
$13,442,183
59.36%
10
53
$60,526
$605,260
$51,318
$10,000,000
49.46%
$113,350
$911,732
$3,482,970
$13,442,183
50.25%
11
54
$60,526
$665,786
$51,347
$10,000,000
42.83%
$0
$911,732
$1,185,827
$10,854,835
39.93%
12
55
$60,526
$726,312
$51,375
$10,000,000
37.61%
$0
$911,732
$1,328,080
$10,725,468
34.87%
13
56
$60,526
$786,838
$51,404
$10,000,000
33.38%
$0
$911,732
$1,483,234
$10,589,632
30.82%
14
57
$60,526
$847,364
$51,432
$10,000,000
29.91%
$0
$911,732
$1,652,318
$10,447,004
27.52%
15
58
$60,526
$907,890
$51,461
$10,000,000
27.00%
$0
$911,732
$1,836,496
$10,297,245
24.78%
16
59
$60,526
$968,416
$51,489
$10,000,000
24.55%
$0
$911,732
$2,036,749
$10,139,998
22.48%
17
60
$60,526
$1,028,942
$51,518
$10,000,000
22.44%
$0
$911,732
$2,254,587
$9,974,889
20.52%
18
61
$60,526
$1,089,468
$51,546
$10,000,000
20.62%
$0
$911,732
$2,491,596
$9,801,524
18.84%
19
62
$60,526
$1,149,994
$51,575
$10,000,000
19.03%
$0
$911,732
$2,749,524
$9,619,492
17.37%
20
63
$60,526
$1,210,520
$51,603
$10,000,000
17.63%
$0
$911,732
$3,030,210
$9,428,357
16.08%
21
64
$60,526
$1,271,046
$51,632
$10,000,000
16.39%
$0
$911,732
$3,335,621
$9,227,666
14.94%
22
65
$60,526
$1,331,572
$51,655
$10,000,000
15.29%
$0
$911,732
$3,667,980
$9,016,940
13.91%
23
66
$60,526
$1,392,098
$81,005
$10,000,000
14.30%
$540,000
$371,732
$3,462,755
$8,228,678
13.02%
24
67
$60,526
$1,452,624
$112,703
$10,000,000
13.42%
$540,000
$168,268
$3,261,335
$7,401,002
12.23%
25
68
$60,526
$1,513,150
$145,219
$10,000,000
12.61%
$540,000
$708,268
$3,065,615
$6,531,943
11.53%
26
69
$60,526
$1,573,676
$190,833
$10,000,000
11.88%
$540,000
$1,248,268
$2,877,893
$5,619,431
10.91%
27
70
$60,526
$1,634,202
$239,509
$10,000,000
11.22%
$540,000
$1,788,268
$2,701,362
$4,661,294
10.34%
28
71
$60,526
$1,694,728
$291,247
$10,000,000
10.61%
$540,000
$2,328,268
$2,539,557
$4,388,530
10.26%
29
72
$60,526
$1,755,254
$346,047
$10,000,000
10.05%
$540,000
$2,868,268
$2,392,136
$4,112,740
10.19%
30
73
$60,526
$1,815,780
$403,909
$10,000,000
9.54%
$540,000
$3,408,268
$2,259,691
$3,823,026
10.14%
31
74
$60,526
$1,876,306
$459,109
$10,000,000
9.06%
$540,000
$3,948,268
$2,145,228
$3,518,834
10.10%
32
75
$60,526
$1,936,832
$511,561
$10,000,000
8.62%
$540,000
$4,488,268
$2,052,292
$3,199,747
10.07%
33
76
$60,526
$1,997,358
$571,509
$10,000,000
8.21%
$540,000
$5,028,268
$1,985,071
$2,865,520
10.05%
34
77
$60,526
$2,057,884
$634,122
$10,000,000
7.83%
$540,000
$5,568,268
$1,942,304
$2,888,024
10.15%
35
78
$60,526
$2,118,410
$699,399
$10,000,000
7.48%
$540,000
$6,108,268
$1,926,885
$2,942,615
10.24%
36
79
$60,526
$2,178,936
$773,917
$10,000,000
7.15%
$540,000
$6,648,268
$1,941,937
$3,032,739
10.33%
37
80
$60,526
$2,239,462
$842,406
$10,000,000
6.84%
$540,000
$7,188,268
$1,991,029
$3,162,321
10.41%
38
81
$60,526
$2,299,988
$922,126
$10,000,000
6.55%
$540,000
$7,728,268
$2,077,697
$3,335,260
10.49%
Policy Details Total Net Outlay Cash Surr Val Net Death Benefit IRR at Life Expetancy
Non-Financed Policy $3,449,982 $0 $10,000,000 3.25%
Financed Policy $17,988,268 $20,089,338 $20,089,338 11.11%
IRR at Life Expectancy 12.00%
11.11%
10.00%
8.00%
6.00%
4.00%
3.25%
2.00%
0.00%
Non-Financed Policy
Financed Policy
Net Outlay and Death Benefit at Life Expectancy $25,000,000
$20,089,338 $20,000,000
$17,988,268
Premium Finance Worksheet: Non-Financed Vs. Financed Policy Prepared for: Valued Client Age 43 Male, 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
82
$60,526
$2,360,514
$994,038
$10,000,000
6.28%
$540,000
$8,268,268
40
83
$60,526
$2,421,040
$1,078,832
$10,000,000
6.02%
$540,000
41
84
$60,526
$2,481,566
$1,141,118
$10,000,000
5.78%
42
85
$60,526
$2,542,092
$1,217,439
$10,000,000
5.56%
43
86
$60,526
$2,602,618
$1,281,827
$10,000,000
44
87
$60,526
$2,663,144
$1,346,745
45
88
$60,526
$2,723,670
46
89
$60,526
$2,784,196
47
90
$60,526
48
91
49 50
Summary at Age 100 Net Death Benefit
IRR
$2,205,655
$3,555,649
10.56%
$8,808,268
$2,379,003
$3,828,000
10.63%
$540,000
$9,348,268
$2,601,489
$4,156,463
10.69%
$540,000
$9,888,268
$2,876,486
$4,544,804
10.75%
5.34%
$540,000
$10,428,268
$3,207,034
$4,996,454
10.80%
$10,000,000
5.14%
$540,000
$10,968,268
$3,596,520
$5,515,219
10.84%
$1,412,116
$10,000,000
4.95%
$540,000
$11,508,268
$4,047,631
$6,104,178
10.89%
$1,477,866
$10,000,000
4.76%
$540,000
$12,048,268
$4,562,375
$6,765,718
10.92%
$2,844,722
$1,525,965
$10,000,000
4.59%
$540,000
$12,588,268
$5,142,279
$7,501,729
10.96%
$60,526
$2,905,248
$1,572,309
$10,000,000
4.43%
$540,000
$13,128,268
$5,786,975
$8,312,126
10.98%
92
$60,526
$2,965,774
$1,596,783
$10,000,000
4.27%
$540,000
$13,668,268
$6,550,807
$8,713,593
10.99%
93
$60,526
$3,026,300
$1,617,113
$10,000,000
4.12%
$540,000
$14,208,268
$7,460,043
$9,197,698
10.99%
51
94
$60,526
$3,086,826
$1,623,768
$10,000,000
3.98%
$540,000
$14,748,268
$8,551,111
$9,793,171
11.00%
52
95
$60,526
$3,147,352
$1,599,193
$10,000,000
3.84%
$540,000
$15,288,268
$9,871,994
$10,538,678
11.01%
53
96
$60,526
$3,207,878
$1,539,083
$10,000,000
3.72%
$540,000
$15,828,268
$11,465,211
$11,465,211
11.02%
54
97
$60,526
$3,268,404
$1,386,614
$10,000,000
3.59%
$540,000
$16,368,268
$13,263,091
$13,263,091
11.05%
55
98
$60,526
$3,328,930
$1,128,868
$10,000,000
3.47%
$540,000
$16,908,268
$15,285,241
$15,285,241
11.07%
56
99
$60,526
$3,389,456
$714,074
$10,000,000
3.36%
$540,000
$17,448,268
$17,552,952
$17,552,952
11.09%
57
100
$60,526
$3,449,982
$0
$10,000,000
3.25%
$540,000
$17,988,268
$20,089,338
$20,089,338
11.11%
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
$15,000,000
$10,000,000 $10,000,000
$5,000,000
$0
Total Net Outlay
Cash Surr Val
$3,449,982 $5,000,000
Non-Financed Policy
Financed Policy