Present Value Calculations

The purpose of this program is to compare the total premiums of two dfferrent insurance policies,
illustrating the cost savings of one policy over the other.

when comparing two policies, it is important to remember that the least expensive policy TODAY
may not be the least expensive policy over the entire period of time that the insurance is requried.

In addition, when you are comparing the total cost of the policies, it is important to compare the
PRESENT VALUE of these premiums. The present value of these premiums is the total premium
payable for each policy, expressed in todays dollars.

Click Here for a complete explanation of Present Value

When you enter the information about each policy below, this program will calculate the total
premiums for each policy, expressed as ACTUAL total premiums, and as the PRESENT VALUE
of the total premiums

Age at renewal	years payable	Premium Payable
50	15
65	15

Age at renewal	years payable	Premium Payable
50	15
65	15

		POLICY A 15 Year Term	POLICY B 15 Year Term
Total Premiums Payable to age 65		$15.00	$15.00
Present Value of Total Premiums Payable to age 65		$13.95	$13.95

Present Value Calculations

Present Value Insurance Policy Premium Comparison

Client Name:		Current Age:	49
Date of Birth:	December 5th,60	Expected Age:	83.46
Policy A:	15 Year Term	Premiums Illustrated to Age:	65
Policy B:	15 Year Term	Interest Rate for PV:	0.05%

	Policy A		Policy B
Age	Actual	PV	Actual	PV

Client Name:		Current Age:	49
Date of Birth:	December 5th,60	Expected Age:	83.46
Policy A:	15 Year Term	Premiums Illustrated to Age:	65
Policy B:	15 Year Term	Interest Rate for PV:	0.05%

	Policy A		Policy B
Age	Actual	PV	Actual	PV
50	1.00	1.00	1.00	1.00
51	1.00	0.95	1.00	0.95
52	1.00	0.91	1.00	0.91
53	1.00	0.86	1.00	0.86
54	1.00	0.82	1.00	0.82
55	1.00	0.78	1.00	0.78
56	1.00	0.75	1.00	0.75
57	1.00	0.71	1.00	0.71
58	1.00	0.68	1.00	0.68
59	1.00	0.64	1.00	0.64
60	1.00	0.61	1.00	0.61
61	1.00	0.58	1.00	0.58
62	1.00	0.56	1.00	0.56
63	1.00	0.53	1.00	0.53
64	1.00	0.51	1.00	0.51
65	Coverage Stops		Coverage Terminates

Summary	Policy A		Policy B
	Actual	PV	Actual	PV
Total Premiums Payable to Age 65:	15	13.9546135229	15	13.9546135229

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Notes about this comparison

"Interest Rate for PV" in the above comparison refers to the interest rate used for the Present Value calculations. In this comparison, Interest Rate does NOT refer to any proposed or suggested rate of return that may have been used in calculating the premium for a universal life policy or contract.

The premiums for ALL Universal Life products and contracts may change based upon the interest rate used for the investment fund of the UL product, and this rate of return may not be guaranteed. When determining the suitability of ANY insurance product, please refer to the company illustration of that product for full details and disclosure about premiums, any applicable rates of return and interest rates.

"Expected Age" refers to your current life expectancy based on your gender, current age and smoking status.

Please print two copies of this report - one for the Client, and one for the Advisor. The Client and the Advisor should each sign this page, indicating that the Client has seen and kept a copy for his records.

Advisor Signature: ...........................................................

Client Signature: ............................................................

Date: .....................................................

Present Value Calculations

Your information:

Present Value Insurance Policy Premium Comparison

Please note that when printed, the rest of this page is intentionally left blank.

Notes about this comparison