1 / 12

A Revolutionary Planning Tool

Fee Based Insurance. A Revolutionary Planning Tool. Cost and Premiums are not the same. 30. Term / Premium. 20. 10. Death Benefit: Guaranteed Premium: Guaranteed Cash Value: Guaranteed. Whole Life. Death Benefit. Net Death Benefit. Premium. Cash Value.

ssuggs
Download Presentation

A Revolutionary Planning Tool

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Fee Based Insurance A Revolutionary Planning Tool

  2. Cost and Premiums are not the same

  3. 30 Term / Premium 20 10

  4. Death Benefit:Guaranteed Premium:Guaranteed Cash Value:Guaranteed Whole Life Death Benefit Net Death Benefit Premium Cash Value

  5. Death Benefit:Guaranteed Premium:Guaranteed Cash Value:Guaranteed Non-Guaranteed:Dividends = hypothetical projections Participating Whole Life Death Benefit Net Death Benefit 20% Premium Cash Value

  6. Guarantees: Minimum Interest / Maximum Costs Non-Guaranteed: Current Interest & Current Charges = hypothetical projections Universal Life Death Benefit Net Death Benefit (Cost?) Premium ? Cash Value

  7. Guarantees: Maximum Costs Non-Guaranteed: Everything else = creating hypothetical projections Variable Life Death Benefit Net Death Benefit (Cost?) ? Premium ? Cash Value

  8. Participating Whole Life Variable Universal Life Whole Life Universal Life Death Benefit: The evolution of product development incorporated many changes to the three economic components of the policy. Some were obvious, others were not. Guaranteed Guaranteed + Hypothetical Dividends Maximum Costs Guaranteed Maximum Costs Guaranteed Premium: Guaranteed Guaranteed Flexible Flexible Cash Guaranteed + Hypothetical Dividends Value: Guaranteed Minimum Interest Rate Guaranteed (Current rates credited) No Guarantees (Market Performance)

  9. Case Study:Male / Age 55 / N.S. / $1 Million Policy / Level Death Benefit / Variable U.L. (Designed premium strategy of $60,000 per year for four years.) Company A:$13,498,410 Company B:$17,877,813 Company C:$23,303,830 Case Study: Male / Age 55 / N.S. / $1 Million Policy / Level Death Benefit Compare future cash value accumulation at age 100: Comparing level premiums to cash value target: Company AA:$14,942 Company BB:$13,234 Company CC:$11,251

  10. Full Disclosure Advantages with Low-Load Life Insurance 1) Minimum Required Premium for First Year Only to Purchase Coverage: Surrender ValueProjected Premium Commission Policy $10,032 $0 Low-Load Policy $3,595 $910 Case Study: Male / Age 55 / N.S. / $1 Million Policy / Level Death Benefit / Variable U.L. (All comparisons are based on premiums paid in the first year only.) 2) Comparing Like-Kind Minimum Required Premium: (The Minimum required premium of the commission policy is $10,032) Surrender ValueProjected Premium Commission Policy $10,032 $0 Low-Load Policy $10,032 $7,771

  11. Full Disclosure Advantages with Low-Load Life Insurance Continued . . . The Target Premium of the Commission Policy is $26,000 3) Comparing Like-Kind Target Premium: Surrender ValueProjected Premium Commission Policy Case Study: Male / Age 55 / N.S. / $1 Million Policy / Level Death Benefit / Variable U.L. (All comparisons are based on premiums paid in the first year only.) $26,000 $7,298 $26,000 Low-Load Policy $24,777 4) “7-Pay” Maximum Non-MEC Premium: Surrender ValueProjected Premium Commission Policy $71,800 $51,246 $73,559 Low-Load Policy $71,800

  12. Premium Projected Using the same sample case study, how will the different Policies function if no additional premiums are deposited(Continuation with Like-Kind Commission Target Premium): Commission Policy $26,000 2 Years Low-Load Policy $26,000 7.5 Years Commission Policy with Target Premiumto Match Low-Load Continuation: Premium Projected Commission Policy $70,000 7.5 Years Low-Load Policy $26,000 7.5 Years

More Related