Withdrawal Phase
$100,000 of after tax retirement income for 15 years.
|
Coverage Year |
Age |
After Tax Loan (Income) |
Bank Loan Balance |
Policy Cash Value |
|---|---|---|---|---|
|
16 |
65 |
100000 |
100000 |
1033336 |
|
17 |
66 |
100000 |
204000 |
1121681 |
|
18 |
67 |
100000 |
312160 |
1216858 |
|
19 |
68 |
100000 |
424646 |
1319281 |
|
20 |
69 |
100000 |
541632 |
1429446 |
|
21 |
70 |
100000 |
663298 |
1547796 |
|
22 |
71 |
100000 |
789829 |
1674895 |
|
23 |
72 |
100000 |
921423 |
1811147 |
|
24 |
73 |
100000 |
1058280 |
1957034 |
|
25 |
74 |
100000 |
1200611 |
2102209 |
|
26 |
75 |
100000 |
1348635 |
2229061 |
|
27 |
76 |
100000 |
1502581 |
2368611 |
|
28 |
77 |
100000 |
1662684 |
2521182 |
|
29 |
78 |
100000 |
1829191 |
2682814 |
|
30 |
79 |
100000 |
2002359 |
2854415 |
During the 15 year withdrawal phase, ages 65-79, the insured accesses a bank loan of $100,000 per year and uses this as after tax retirement income. Loans and loan interest are capitalized. We have assumed a maximum loan balance to policy cash value ratio of 75%.
Exit Phase
Upon death, the bank loan balance is fully paid off with the death benefit proceeds, any remaining death benefit is paid to your beneficiaries.
Age at Death
|
Coverage Year |
Age at Death |
Total Death Benefit |
Loan Balance |
Paid to Beneficiaries |
|---|---|---|---|---|
|
31 |
80 |
3763694 |
2082453 |
1681241 |
|
36 |
85 |
4672058 |
2533623 |
2138435 |
|
41 |
90 |
5875938 |
3082539 |
2793399 |
Because the loan has been targetted to be maximum of 75% of the cash value, there is a healthy death benefit (insurance amount, plus the remainder of the cash value) payable to the insured’ beneficiaries. For example if they passed at age 90, the full bank loan would be repaided and almost 2.8MM of death benefit would be paid out to the insured’s chosen beneficiaries.
