Indexed Universal Life (IUL) #1 carrier
design: Male, age 50, preferred non-tobacco, $250 monthly planned premium, solve for minimum face amount (no MEC or guideline premium violation), index strategy: S&P 500 cap rate account, 100% allocation, assuming 5.00% all years (maximum illustrative rate 6.27%); death benefit option: increasing; death benefit compliance test: guideline; no optional riders.
Initial death benefit: $50,000
premium outlay: $3,000 annual
Initial Guideline Level Premium: $3,575.61
Initial Guideline Single Premium: $19,939.36
Seven Pay Premium: $4,000.56
Results
non guaranteed values: year 20 @5.00% all years
cash surrender value $74,991
death benefit $124,991
total premium outlay $60,000 ($250/month)
non guaranteed values: year 20 @5.50% all years
cash surrender value $79,132
death benefit $129,132
premium outlay $60,000 ($250/month)
non guaranteed values: year 20 @6.00% all years
cash surrender value $83,539
death benefit $133,539
premium outlay $60,000 ($250/month)
Maximum non-MEC results
Guideline Level Premium: $3,575.61 annual
non guaranteed values: year 20 @5.00% all years
cash surrender value $91,039
death benefit $141,039
premium outlay $71,510 ($297.96/month) (297.96 x 12 = 3,575.52 no MEC)
Guideline Level Premium: $3,575.61
non guaranteed values: year 20 @6.00% all years
cash surrender value $101,434
death benefit $151,434
premium outlay $71,510 ($297.96/month)