Male, age 44, standard non tobacco
$200,000 annual premium years 1-10, zero premium years 11+: total premium $2,000,000
5.00% interest crediting S & P 500 index annual point-to-point, all years. This is not the maximum crediting allowed but helps compare carrier performance apples-to-apples.
structured maximum cash value accumulation, guideline level premium, minimum face amount, increasing death benefit, non-MEC guideline level premium test
Cash Value Accumulation (non guaranteed based on 5%)
Company A: $2,967,294 initial death benefit, year 20 cash value: $3,749,106, age 79 no lapse guarantee
Company B: $3,255,183 initial death benefit, year 20 cash value: $3,352,877, age 93 no lapse guarantee
Tax-Free Loans
Same structure as above except an increasing death benefit years 1-20, level death benefit years 21+, variable loan rate 4.50%
Company A: $803,212 loans years 21-25, total loans $4,0116,060 net outlay ($2,016,060)
Company B: $680,000 loans years 21-25, non guarantee lapse age 86
Comments: Even though company A projects clear advantages in cash value accumulation and policy loans, company B with its age 93 no lapse guarantee (NLG) indicates a fundamentally stronger product impervious to cost of insurance (COI) increases in or cap reductions, any carrier undermining of product support in the future.
Indexed Universal Life (IUL) quotes run April 2023. Please contact me to discuss these two competitive carriers.