Friday, January 18, 2008

my old mutual life policy illustration - part 1

I will hold on any analysis and let's get down to the key elements of the illustration first.

First, a little bit of myself. I am 33/Male/Non-tobacco/live in CA.

Annual Premium: $30k
Death Benefit Option: Level
Initial Face Amount: $1,025,885
Riders: ABR (I was told this comes as the standard with any policy). It stands for Accelerated Benefit Rider. It gives the policy owner access to up to half of the death benefit if the insured is diagnosed with a terminal illness or condition and is expected to live less than twelve months. (This will be sad.) There is no cost of insurance charge for this rider (I guess this is the reason why it comes with any policy. No cost is good). The death benefit and cost of insurance charges for the policy are reduced if you exercie this rider's benefit. Also, an administrative fee and an interest discount are subtracted from any benefit paid under this rider.
Also it says the stop year is 67.

Looking at the footer area, it looks like the illustration is generated by the old mutual software version 3.722A.

I will start putting the numbers of illustration in part 2. I need to figure out how to put everything in a nice tabular format. :)

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