Taking the same 30 yr old male, but converting to a UL in yr 20: January 15, 2009 Interest Adjusted
Cost Analysis Face Amount: (1) 100,000.00 (2) 100,000.00 Product 1: Term 20 yr Product 2: Whole Life Whole Life Interest Rate: 5.00 % Tax Rate: 0.00 % (Tax Deferred Vehicle) After Tax Rate: 5.00 % Year Age Premium 1 Premium 2 1 minus 2 Premiums Saved 1 30 127.00 1,056.00 -929.00 -975.45 2 31 127.00 1,056.00 -929.00 -1,999.67 3 32 127.00 1,056.00 -929.00 -3,075.11 4 33 127.00 1,056.00 -929.00 -4,204.31 5 34 127.00 1,056.00 -929.00 -5,389.98 6 35 127.00 1,056.00 -929.00 -6,634.93 7 36 127.00 1,056.00 -929.00 -7,942.12 8 37 127.00 1,056.00 -929.00 -9,314.68 9 38 127.00 1,056.00 -929.00 -10,755.86 10 39 127.00 1,056.00 -929.00 -12,269.11 11 40 127.00 1,056.00 -929.00 -13,858.01 12 41 127.00 1,056.00 -929.00 -15,526.36 13 42 127.00 1,056.00 -929.00 -17,278.13 14 43 127.00 1,056.00 -929.00 -19,117.49 15 44 127.00 1,056.00 -929.00 -21,048.81 16 45 127.00 1,056.00 -929.00 -23,076.70 17 46 127.00 1,056.00 -929.00 -25,205.99 18 47 127.00 1,056.00 -929.00 -27,441.73 19 48 127.00 1,056.00 -929.00 -29,789.27 20 49 1,000.00 1,056.00 -56.00 -31,337.53 21 50 1,000.00 1,056.00 -56.00 -32,963.21 22 51 1,000.00 1,056.00 -56.00 -34,670.17 23 52 1,000.00 1,056.00 -56.00 -36,462.48 24 53 1,000.00 1,056.00 -56.00 -38,344.40 25 54 1,000.00 1,056.00 -56.00 -40,320.43 26 55 1,000.00 1,056.00 -56.00 -42,395.25 27 56 1,000.00 1,056.00 -56.00 -44,573.81 28 57 1,000.00 1,056.00 -56.00 -46,861.30 29 58 1,000.00 1,056.00 -56.00 -49,263.16 30 59 1,000.00 1,056.00 -56.00 -51,785.12 31 60 1,000.00 1,056.00 -56.00 -54,433.18 32 61 1,000.00 1,056.00 -56.00 -57,213.64 33 62 1,000.00 1,056.00 -56.00 -60,133.12 34 63 1,000.00 1,056.00 -56.00 -63,198.58 35 64 1,000.00 1,056.00 -56.00 -66,417.30 36 65 1,000.00 1,056.00 -56.00 -69,796.97 37 66 1,000.00 1,056.00 -56.00 -73,345.62 38 67 1,000.00 1,056.00 -56.00 -77,071.70 39 68 1,000.00 1,056.00 -56.00 -80,984.08 40 69 1,000.00 1,056.00 -56.00 -85,092.09 41 70 1,000.00 1,056.00 -56.00 -89,405.49 42 71 1,000.00 1,056.00 -56.00 -93,934.57 43 72 1,000.00 1,056.00 -56.00 -98,690.09 44 73 1,000.00 1,056.00 -56.00 -103,683.40 45 74 1,000.00 1,056.00 -56.00 -108,926.37 46 75 1,000.00 1,056.00 -56.00 -114,431.49 47 76 1,000.00 1,056.00 -56.00 -120,211.86 48 77 1,000.00 1,056.00 -56.00 -126,281.26 49 78 1,000.00 1,056.00 -56.00 -132,654.12 50 79 1,000.00 1,056.00 -56.00 -139,345.62 51 80 1,000.00 1,056.00 -56.00 -146,371.71 52 81 1,000.00 1,056.00 -56.00 -153,749.09 53 82 1,000.00 1,056.00 -56.00 -161,495.35 54 83 1,000.00 1,056.00 -56.00 -169,628.91 55 84 1,000.00 1,056.00 -56.00 -178,169.16 56 85 1,000.00 1,056.00 -56.00 -187,136.42 57 86 2,477.00 1,056.00 1,421.00 -195,001.19 When comparing the rates of two different Life Insurance products it is important to take into consideration the «time value» or «opportunity cost» of mo
Cost Analysis Face Amount: (1) 100,000.00 (2) 100,000.00 Product 1:
Term 20 yr Product 2: Whole
Life Whole
Life Interest Rate: 5.00 % Tax Rate: 0.00 % (Tax Deferred Vehicle) After Tax Rate: 5.00 %
Year Age Premium 1 Premium 2 1 minus 2 Premiums Saved 1 30 127.00 1,056.00 -929.00 -975.45 2 31 127.00 1,056.00 -929.00 -1,999.67 3 32 127.00 1,056.00 -929.00 -3,075.11 4 33 127.00 1,056.00 -929.00 -4,204.31 5 34 127.00 1,056.00 -929.00 -5,389.98 6 35 127.00 1,056.00 -929.00 -6,634.93 7 36 127.00 1,056.00 -929.00 -7,942.12 8 37 127.00 1,056.00 -929.00 -9,314.68 9 38 127.00 1,056.00 -929.00 -10,755.86 10 39 127.00 1,056.00 -929.00 -12,269.11 11 40 127.00 1,056.00 -929.00 -13,858.01 12 41 127.00 1,056.00 -929.00 -15,526.36 13 42 127.00 1,056.00 -929.00 -17,278.13 14 43 127.00 1,056.00 -929.00 -19,117.49 15 44 127.00 1,056.00 -929.00 -21,048.81 16 45 127.00 1,056.00 -929.00 -23,076.70 17 46 127.00 1,056.00 -929.00 -25,205.99 18 47 127.00 1,056.00 -929.00 -27,441.73 19 48 127.00 1,056.00 -929.00 -29,789.27 20 49 1,000.00 1,056.00 -56.00 -31,337.53 21 50 1,000.00 1,056.00 -56.00 -32,963.21 22 51 1,000.00 1,056.00 -56.00 -34,670.17 23 52 1,000.00 1,056.00 -56.00 -36,462.48 24 53 1,000.00 1,056.00 -56.00 -38,344.40 25 54 1,000.00 1,056.00 -56.00 -40,320.43 26 55 1,000.00 1,056.00 -56.00 -42,395.25 27 56 1,000.00 1,056.00 -56.00 -44,573.81 28 57 1,000.00 1,056.00 -56.00 -46,861.30 29 58 1,000.00 1,056.00 -56.00 -49,263.16 30 59 1,000.00 1,056.00 -56.00 -51,785.12 31 60 1,000.00 1,056.00 -56.00 -54,433.18 32 61 1,000.00 1,056.00 -56.00 -57,213.64 33 62 1,000.00 1,056.00 -56.00 -60,133.12 34 63 1,000.00 1,056.00 -56.00 -63,198.58 35 64 1,000.00 1,056.00 -56.00 -66,417.30 36 65 1,000.00 1,056.00 -56.00 -69,796.97 37 66 1,000.00 1,056.00 -56.00 -73,345.62 38 67 1,000.00 1,056.00 -56.00 -77,071.70 39 68 1,000.00 1,056.00 -56.00 -80,984.08 40 69 1,000.00 1,056.00 -56.00 -85,092.09 41 70 1,000.00 1,056.00 -56.00 -89,405.49 42 71 1,000.00 1,056.00 -56.00 -93,934.57 43 72 1,000.00 1,056.00 -56.00 -98,690.09 44 73 1,000.00 1,056.00 -56.00 -103,683.40 45 74 1,000.00 1,056.00 -56.00 -108,926.37 46 75 1,000.00 1,056.00 -56.00 -114,431.49 47 76 1,000.00 1,056.00 -56.00 -120,211.86 48 77 1,000.00 1,056.00 -56.00 -126,281.26 49 78 1,000.00 1,056.00 -56.00 -132,654.12 50 79 1,000.00 1,056.00 -56.00 -139,345.62 51 80 1,000.00 1,056.00 -56.00 -146,371.71 52 81 1,000.00 1,056.00 -56.00 -153,749.09 53 82 1,000.00 1,056.00 -56.00 -161,495.35 54 83 1,000.00 1,056.00 -56.00 -169,628.91 55 84 1,000.00 1,056.00 -56.00 -178,169.16 56 85 1,000.00 1,056.00 -56.00 -187,136.42 57 86 2,477.00 1,056.00 1,421.00 -195,001.19 When comparing the rates of two different
Life Insurance products it is important to take into consideration the «time value» or «opportunity
cost» of mo
cost» of money.