$491,287 initial increasing death benefit Maximum non-MEC annual premium $14,535.83, 7 pay test (annual) Guideline level premium: $11,992.02 (maximum non-MEC annual) $209,644 initial increasing death benefit Goal #2: target premium in order to build cash value and for coverage to last to age 120, flexible premiums for coverage to age 120 and cash value accumulation The policy projects coverage to age 120 without further premiums. total $298,200 distributions over 5 years. Maximum disbursements for 5 years, $59,640 assuming 4.50% variable rate. $104,115 increasing initial death benefitĬash value accumulation $268,559 year 25. $6,000 annual premium: guideline level premium $6,000.02 (non-MEC since it’s below guideline level)
Maximum distributions years 26-30 (5 years) switch at basis from withdrawals to loans Increasing death benefit years 1-25, level death benefit thereafter
$500 monthly premium years 1-25, zero premiums thereafter to age 120
S&P 500 annual annual point-to-point with 100% Participation Goal #1: maximum cash value accumulation, income disbursements after retirement, no premiums in retirementĭesign: minimum face amount, non-MEC (Modified Endowment Contract)
