mutual insurance company with over hundred- forty- five years of success. They understood going into the contest CD rates and life insurance dividends can change. Markets change, and so do interest rates, but for this example, everything stays except Dave runs out of life insurance in thirty years at age 80. Sam has a waiver of premium should a disability appear. Their personal incomes were almost identical. Sam and Dave were both in a 12% tax bracket. In year 11, they decided to withdraw $49,250 to purchase a new bass boat and start fishing at a few local bass tournaments. They are repaying $13,887 over the next four years to cover their boat purchase. They only borrowed money once from their account during this 30-year period. Realize that Dave is paying $5647 for his 30-year term life. Dave’s CD vs. Sam’s Privatized Family Banking — 30-Year Results ($49,250 each over 10 years, age 50 start) Dave’s Plan: Taxable CD @ 4.1% (3.61% Net) Sam’s Privatized Family Banking (PFB) Dave’s tax bracket: 12% Sam’s tax bracket: 12% Annual payment: $49,250 Annual payment: $49,250 Years to fund accumulation: 10 Years of fund accumulation: 10 Annual Cost of Term Insurance: $5,647 Years fund access: 30 Year of boat purchase: 11th Year of boat purchase: 11th Loan amount: $49,250 Loan amount: $49,250 Amortized Loan Payment: $13,588 Amortized Loan Payment: $13,588 Repayment Years: 4 Repayment Years: 4 Critical Illness Benefit: None Critical & Terminal illness (2 of 6): Yes
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