Howell & Associates Advanced Planning - Green Bay, Wisconsin

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Life Insurance Policy Review

Combined Policy Information:

Death Benefit:  $ 2,116,000
Cash Surrender Value:  $ 201,928
Annual Premiums:  $ 15,240

  1. Example:  Joe Public, age 46 purchased two single premium variable life policies in 1989.  Current combined death benefit of $2,116,000, cash surrender value of $201,928 and annual premiums of $15,240.  The goal is to reprice the current coverage in accordance with the clients needs.

  1. Results:  Assuming good health, we can move the client’s existing cash value over to a new Guaranteed Universal Life policy and obtain:

    1. Option 1 - a new death benefit of $1,389,695 while paying no further premium and removing market risk.

    2. Option 2 - a lower premium of $ 5,846 per year while maintaining the current death benefit of $2,116,000 and removing market risk

    3. Option 3 - a new death benefit of $ 3,283,242 while maintaining the current premium payment of $15,240 annually and removing market risk

All guarantees are based on the claims-paying ability of the insurance company issuing the policy. Howell & Associates does not provide tax, accounting or legal advice. Clients should consult their independent advisor as to any tax, accounting or legal statement made herein.