Age
Commercial Bank Earn 3% Pay Loan @ 5%
Privatized Family Banking
Death Benefit / Waiver of Prem.
35
$50,000
$32,508
$1,353,234
45
$575,640
$464,502
$2,486,484
46
$437,680
$500,851
$1,517,139
50
$590,822
$741,536
$1,795,398
51
$530,320
$375,282
$1,738,595
55
$659,101
$955,583
$2,042,421
56
$599,951
$900,388
$1,992,418
60
$634,413
$1,230,044
$2,328,436
61
$676,754
$1,581,474
$2,669,003
65
$817,481
$1,010,010
$2,691,898
70
$901,680
$2,033,544
$3,085,755
95
$365,171
$6,326,754
$6,686,460
** Values may have changed due to dividends.
From age 70 – 90, he received tax-free $55,000 annually for a total of $829,440 with the PB. In the event of his death at age 70, his family would receive the $1,195,845 plus the net death benefit of $1,382,776 for a total of tax-free value of $2,578,621. The commercial bank account would only be worth $901,680. Plus, there was no death benefit during the entire time. Remember, he only invested $200,000 plus the interest on the loans. This would also provide him approximately $55,000 tax-free income from age 70 to age 90 ($1,375,000), and his PB account would still have $809,241 cash value with a $1,236,199 death benefit compared to the Bank's $340,056 with never having any life insurance. Plus, with PB the account throughout its history has been very liquid for emergencies,
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