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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.

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