My father-in-law has a Universal Life to Age 95 policy. I posted about this about a year ago, and it has taken us a year to get an in-force illustration from the servicing corporation. ![:x]( "Mad")
I've taken a stab at analyzing this, but would like to ask for others with more experience to weigh in. Specific dates redacted for privacy...
Universal Life, flexible premium adjustable life insurance to age 95
Contract Type: Level
Face amount: $100,000
Issue Age: 30
Current Age: 68
Issue Date: 1985
Maturity Date: 2050
Riders: $100,000 Accidental Death Benefit
Monthly Premium: $67.10
Guaranteed interest rate is 6.00%.
The current credited rate is 6.00%.
Level Death Benefit Option (A) - From Year 39 To Year 65
8.00% premium charge deducted from all premium payments. A policy charge of $4.00 per month is assessed
in all policy years. The cost of insurance is deducted monthly from the cash value. The cost of insurance for columns based on current values are calculated using the 1980 Commissioner's Standard Ordinary Mortality Table, or the company's current rates, if lower. The cost of insurance for columns based on guaranteed values is calculated using the company's guaranteed maximum mortality rate.
Specified Base Face Amount: $100,000.00
Death Benefit Option: Level
Annualized Premium: $805.10
Total Premiums Paid: $31,005.973
Riders and Benefits (charges may apply) : Accelerated Benefit Rider
Gross Accumulated Cash Value: $66,067.21
Outstanding Policy Loan: $0.00
Cash Surrender Value: $66,067.21
Dividend Option: added to the cash value
=================
INFORCE BASIC LEDGER
FOR SCENARIO WHERE IN-LAW STOPS SENDING IN YEARLY PREMIUM PAYMENT ($0/year)
INFORCE BASIC LEDGER
FOR SCENARIO WHERE IN-LAW MAINTAINS CURRENT PREMIUM PAYMENT ($805/yr)
The guaranteed cost of insurance table from original 1985 contract shows significant cost of insurance increases.1) In-law is considering withdrawing the cash value and surrendering the policy, and I'm inclined to agree. In-law has zero debt, house and cars are all paid for, low monthly expenses, is in great physical shape and still working. Would love to get some opinions from Bogleheads...
2) On the INFORCE ILLUSTRATION, I noticed a line "Level Death Benefit Option (A) - From Year 39 To Year 65". I don't see anything int the original 1985 contract that mentions that. Can anyone explain what that means?
I've taken a stab at analyzing this, but would like to ask for others with more experience to weigh in. Specific dates redacted for privacy...
Universal Life, flexible premium adjustable life insurance to age 95
Contract Type: Level
Face amount: $100,000
Issue Age: 30
Current Age: 68
Issue Date: 1985
Maturity Date: 2050
Riders: $100,000 Accidental Death Benefit
Monthly Premium: $67.10
Guaranteed interest rate is 6.00%.
The current credited rate is 6.00%.
Level Death Benefit Option (A) - From Year 39 To Year 65
8.00% premium charge deducted from all premium payments. A policy charge of $4.00 per month is assessed
in all policy years. The cost of insurance is deducted monthly from the cash value. The cost of insurance for columns based on current values are calculated using the 1980 Commissioner's Standard Ordinary Mortality Table, or the company's current rates, if lower. The cost of insurance for columns based on guaranteed values is calculated using the company's guaranteed maximum mortality rate.
Specified Base Face Amount: $100,000.00
Death Benefit Option: Level
Annualized Premium: $805.10
Total Premiums Paid: $31,005.973
Riders and Benefits (charges may apply) : Accelerated Benefit Rider
Gross Accumulated Cash Value: $66,067.21
Outstanding Policy Loan: $0.00
Cash Surrender Value: $66,067.21
Dividend Option: added to the cash value
=================
INFORCE BASIC LEDGER
FOR SCENARIO WHERE IN-LAW STOPS SENDING IN YEARLY PREMIUM PAYMENT ($0/year)
Code:
Guaranteed Non-Guaranteed Guaranteed Interest Rate 6.00% Current Interest Rate 6.00% Guaranteed Charges Current Charges Net NetEOY Age AnnualzdPrem NetCashVal NetCashSurrend NetDeathBeneft NetCashVal NetCashSurrend NetDeathBenefit 39 69 268 67,281 67,281 100,000 67,305 67,305 100,00040 70 0 70,269 70,269 100,000 70,369 70,369 100,000TOTAL 268 41 71 0 73,442 73,442 100,000 73,660 73,660 100,00042 72 0 76,813 76,813 100,000 77,231 77,231 100,00043 73 0 80,448 80,448 100,000 81,076 81,076 100,00044 74 0 84,378 84,378 100,000 85,225 85,225 100,00045 75 0 88,668 88,668 100,000 89,738 89,738 100,000TOTAL 268 46 76 0 93,407 93,407 100,000 94,696 94,696 100,00047 77 0 98,644 98,644 103,576 100,085 100,085 105,08948 78 0 104,177 104,177 109,386 105,760 105,760 111,04849 79 0 109,991 109,991 115,490 111,733 111,733 117,32050 80 0 116,093 116,093 121,898 118,014 118,014 123,915TOTAL 268 51 81 0 122,493 122,493 128,617 124,615 124,615 130,84652 82 0 129,197 129,197 135,656 131,522 131,522 138,09853 83 0 136,209 136,209 143,020 138,761 138,761 145,69954 84 0 143,532 143,532 150,709 146,338 146,338 153,65555 85 0 151,167 151,167 158,726 154,258 154,258 161,971TOTAL 26856 86 0 159,118 159,118 167,074 162,527 162,527 170,65357 87 0 167,387 167,387 175,757 171,153 171,153 179,71058 88 0 175,978 175,978 184,777 180,141 180,141 189,14859 89 0 184,895 184,895 194,140 189,502 189,502 198,97760 90 0 194,141 194,141 203,848 199,240 199,240 209,202TOTAL 268 61 91 0 203,715 203,715 213,901 209,362 209,362 219,83062 92 0 214,115 214,115 222,680 220,310 220,310 229,12363 93 0 225,483 225,483 232,247 232,217 232,217 239,18364 94 0 237,987 237,987 242,746 245,239 245,239 250,14365 95 0 251,836 251,836 254,354 259,567 259,567 262,163TOTAL 268 FOR SCENARIO WHERE IN-LAW MAINTAINS CURRENT PREMIUM PAYMENT ($805/yr)
Code:
Guaranteed Non-Guaranteed Guaranteed Interest Rate 6.00% Current Interest Rate 6.00% Guaranteed Charges Current Charges Net NetEOY Age AnnualzdPrem NetCashVal NetCashSurrend NetDeathBeneft NetCashVal NetCashSurrend NetDeathBenefit 39 69 268 67,281 67,281 100,000 67,305 67,305 100,00040 70 805 71,047 71,047 100,000 71,146 71,146 100,000TOTAL 1,074 41 71 805 75,075 75,075 100,000 75,287 75,287 100,00042 72 805 79,394 79,394 100,000 79,789 79,789 100,00043 73 805 84,084 84,084 100,000 84,663 84,663 100,00044 74 805 89,203 89,203 100,000 89,959 89,959 100,00045 75 805 94,841 94,841 101,480 95,745 95,745 102,447TOTAL 5,100 46 76 743 100,919 100,919 105,965 101,925 101,925 107,02147 77 729 107,304 107,304 112,669 108,423 108,423 113,84548 78 729 114,019 114,019 119,720 115,268 115,268 121,03149 79 729 121,077 121,077 127,131 122,473 122,473 128,59750 80 729 128,490 128,490 134,915 130,054 130,054 136,557TOTAL 8,759 51 81 729 136,270 136,270 143,084 138,025 138,025 144,92652 82 729 144,424 144,424 151,645 146,372 146,372 153,69053 83 729 152,960 152,960 160,608 155,124 155,124 162,88154 84 729 161,880 161,880 169,974 164,292 164,292 172,50655 85 729 171,188 171,188 179,747 173,879 173,879 182,573TOTAL 12,40556 86 729 180,888 180,888 189,932 183,897 183,897 193,09257 87 729 190,985 190,985 200,534 194,353 194,353 204,07158 88 729 201,483 201,483 211,557 205,257 205,257 215,52059 89 729 212,389 212,389 223,008 216,619 216,619 227,45060 90 729 223,706 223,706 234,891 228,447 228,447 239,870TOTAL 16,052 61 91 729 235,434 235,434 247,206 240,749 240,749 252,78762 92 729 248,151 248,151 258,077 254,037 254,037 264,19863 93 729 262,023 262,023 269,884 268,464 268,464 276,51864 94 729 277,253 277,253 282,798 284,217 284,217 289,90265 95 729 294,087 294,087 297,028 301,523 301,523 304,539TOTAL 19,698Code:
1985Contract TableAge RatePerMoPer1K66 1.9567 2.1568 2.3769 2.6170 2.8871 3.2472 3.5473 3.9574 4.4175 4.976 5.4277 5.9778 6.5379 7.1480 7.881 8.5482 9.3783 10.3184 11.3485 12.4386 13.5687 14.7388 15.989 17.190 18.3491 19.6592 21.0693 22.6394 24.632) On the INFORCE ILLUSTRATION, I noticed a line "Level Death Benefit Option (A) - From Year 39 To Year 65". I don't see anything int the original 1985 contract that mentions that. Can anyone explain what that means?
Statistics: Posted by Rd123123 — Wed Aug 14, 2024 10:40 am — Replies 1 — Views 63