National Life Insurance Company Montpelier, Vermont

Transcription

1 National Life Insurance Company Montpelier, Vermont PLEASE READ CAREFULLY This illustration does not constitute an endorsement by National Life Insurance Company or its agents of the underlying strategy, nor a guaranty by National Life or its agents of the attendant tax consequences. Neither National Life nor its agents are authorized to provide tax, legal or accounting advice, and prospective purchasers are advised to consult independent tax, legal or accounting advisors concerning their own particular circumstances. All illustrated insurance values and benefits shown are not guaranteed unless specifically labeled guaranteed in the accompanying illustration. Non-guaranteed values reflect current mortality and current policy charges and are not a prediction of future charges. These assumptions are subject to change by the company. Actual results may be more or less favorable than illustrated. Loans and withdrawals will reduce the cash value and death benefit of the policy and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy s cash value in early years. Guarantees are dependent upon the claims-paying ability of the issuing company. Life insurance death benefits are received federally income tax-free in accordance with Internal Revenue Code 11(a)(1). There are some exceptions to this rule. This information is not intended as tax or legal advice. Please consult with your Attorney or Accountant prior to acting upon any of the information contained in this correspondence. This illustration is not valid unless accompanied by a full National Life Illustration for each product represented. Please refer to the attached illustrations for guaranteed values and other important information. Page 1 of 11

2 Term Insurance and Comparison Page: 1 Presented By: National Life For: The Client Date: 8/13/213 Male Age 45 Yield 6.% Income Tax Rate 35.% 5.83% Initial 519,332 Payment Allocation 5, Scheduled Term Insurance Along with Year (1) Cost of the Proposed (2) Alternative Term (3) Net to (1) - (2) (4) Cash Flow from the Account (5) Values (6) Scheduled Term (7) Combined (5) + (6) (8) Loan Proceeds (9) Accum (1) Surrender (11) 1 22, ,895 23,788 5, 523,788 19,332 6, , , ,895 48,54 5, 548,54 39,71 27,81 539, , ,895 74,183 5, 574,183 61,121 5, , , ,895 1,864 5, 6,864 83,743 73, , , , ,586 5, 628,586 17,588 98,593 67, , , ,388 5, 657, , , , , , ,315 5, 687, , ,22 659, , , ,48 5, 718,48 186, , , , ,895 25,714 5, 75, , ,83 716, , , ,279 5, 784, ,72 245, , , , ,154 5, 819, , , , , , ,389 5, 855, , , , , , ,37 5, 893,37 361, , , , , ,153 5, 932,153 44,778 44,778 94, , , ,795 5, 972,795 45,136 45,136 95, , , ,22 5, 1,15,22 498,2 498,2 998, , , ,896 5, 1,58, , ,125 1,49, , ,895 64,481 5, 1,14,481 63,77 63,77 1,13, , , ,843 5, 1,151,843 66,234 66,234 1,16, , ,88 693,765 5, 1,193, , ,979 1,16,234 45, ,885 2 Year Summary Term/ *This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Payments 45,95 45,95 Cash Flow Living Values 693, ,979 1,193,765 1,16,234 Page 2 of 11

3 Term Insurance and Comparison Page: 2 Presented By: National Life For: The Client Date: 8/13/213 Male Age 45 Yield 6.% Income Tax Rate 35.% 5.83% Initial 519,332 Payment Allocation 5, Scheduled Term Insurance Along with Year (1) Cost of the Proposed (2) Alternative Term (3) Net to (1) - (2) (4) Cash Flow from the Account (5) Values (6) Scheduled Term (7) Combined (5) + (6) (8) Loan Proceeds (9) Accum (1) Surrender (11) 21 68, ,8 649,8 68, , ,951 1,89, ,356 64,12 64,12 68,356 81,16 655,715 1,14, , , ,659 68, , , , ,356 57,347 57,347 68,356 9,45 597,86 856, , , ,111 68, , , , ,356 42,878 42,878 68,356 1,14,22 539, , , , ,568 68,356 1,76,787 51,789 65, ,356 29,11 29,11 68,356 1,143, ,594 68, ,356 23,393 23,393 68,356 1,214,73 454, ,4 3 68, , ,357 68,356 1,29, ,34 517, ,356 13,91 13,91 68,356 1,371,31 4, , ,356 36,931 36,931 68,356 1,457,54 374, , ,931 68,356 1,547, , , ,356 1,644, ,479 45, ,356 1,746, , , ,356 1,854, ,26 367, ,356 1,969, ,952 35, ,356 2,9,33 229, , ,356 2,218,487 28, , ,356 2,353, ,332 36,27 45, , ,23 1,367,12 4 Year Summary Term/ *This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Payments 45,95 45,95 Cash Flow 857,23 1,367,12 Living Values 188,332 36,27 Page 3 of 11

4 Term Insurance and Comparison Page: 3 Presented By: National Life For: The Client Date: 8/13/213 Male Age 45 Yield 6.% Income Tax Rate 35.% 5.83% Initial 519,332 Payment Allocation 5, Scheduled Term Insurance Along with Year (1) Cost of the Proposed (2) Alternative Term (3) Net to (1) - (2) (4) Cash Flow from the Account (5) Values (6) Scheduled Term (7) Combined (5) + (6) (8) Loan Proceeds (9) Accum (1) Surrender (11) 41 68,356 2,496, ,53 293, ,356 2,647,378 15, , ,356 2,85,96 133,82 273, ,356 2,972, ,37 264, ,356 3,147,828 1, , ,356 3,331,825 85,11 251, ,356 3,528,595 74, , ,356 3,739,836 69, , ,356 3,967,224 71,21 15, ,356 4,213,841 82, , ,356 4,474,988 99, , ,356 4,751,53 12, , ,356 5,44,59 148, , ,356 5,355, , , ,356 5,684,85 223, , ,356 6,34,53 272, , ,356 6,45,775 33,23 394, ,356 6,799, , , ,356 7,218,21 476, , ,356 7,662,28 565, ,455 45, , ,23 2,734,24 6 Year Summary Term/ *This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Payments 45,95 45,95 Cash Flow 857,23 2,734,24 Living Values 565, ,455 Page 4 of 11

5 Term Insurance and Comparison Page: 4 Presented By: National Life For: The Client Date: 8/13/213 Male Age 45 Yield 6.% Income Tax Rate 35.% 5.83% Initial 519,332 Payment Allocation 5, Scheduled Term Insurance Along with Year (1) Cost of the Proposed (2) Alternative Term (3) Net to (1) - (2) (4) Cash Flow from the Account (5) Values (6) Scheduled Term (7) Combined (5) + (6) (8) Loan Proceeds (9) Accum (1) Surrender (11) 61 68,356 8,133, , , ,356 8,634,95 783, , ,356 9,165, ,836 1,5, ,356 9,729,185 1,59,936 1,157, ,356 1,327,771 1,223,187 1,326, ,356 1,963,189 1,44,985 1,514, ,356 11,637,76 1,66,831 1,723, ,356 12,353,728 1,83,329 1,953, ,356 13,113,88 2,77,199 2,28, ,356 13,92,658 2,349,285 2,488, ,356 14,777,155 2,648,557 2,796, ,356 15,686,355 2,977,129 3,133, ,356 16,651,5 3,337,259 3,53, ,356 17,676,32 3,731,366 3,98, ,356 18,763,66 4,162,38 4,349,674 45, , ,23 3,759,58 75 Year Summary Term/ *This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Payments 45,95 45,95 Cash Flow 857,23 3,759,58 Living Values 4,162,38 4,349,674 Page 5 of 11

6 Term Insurance and MV Page: 1 Presented By: National Life For: The Client Date: 8/13/213 Male Age 45 Yield 6.% Income Tax Rate 35.% 5.83% Initial 519,332 Matching Values Gross Required on to Match NL FlexLife Values over 75 Years After Applying the Term Payment Illustrated Gross Required To match Accumulation Value of:$18,763, % To match Surrender Value of: $4,162, % To match of: $4,349, % Income Tax Considerations 1. : Interest is taxed as earned. 2. NL FlexLife: a. including cash value component is income tax free. b. Loans are income tax free as long as the policy is kept in force. c. Withdrawals and other non-loan policy cash flow up to cost basis (not in violation of IRC Section 772) are income tax free as a return of premium. d. Cash values shown assume most favorable combination of b and/or c. This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 6 of 11

7 Term Insurance and Date: 8/13/213 Presented By: National Life For: The Client 75th Year Summary Analysis Term Insurance and NL FlexLife 857,23 Cumulative 45,95 Payments 45,95 3,759,58 Cumulative Cash Flow 4,162,38 Living Values 4,349,674 This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 7 of 11

8 Term Insurance and Date: 8/13/213 Presented By: National Life For: The Client 75 Year Graphic Analysis Cumulative Payments Cumulative Loan Proceeds $5.2M $5.2M 3.9M 3.9M $3,759,58 2.6M 2.6M 1.3M $45,95 Yrs M $857,23 Yrs Term Insurance FlexLife IUL $5.2M 3.9M $5.2M 3.9M Surrender Value $4,349,674 $4,162,38 2.6M 2.6M 1.3M 1.3M Yrs Yrs This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 8 of 11

9 Term Insurance and Date: 8/13/213 Presented By: National Life For: The Client Cash Flow Comparison Years $4,, $3,759,58 $3,, CF-Pol $2,, $1,, CF-TI $857, Years CF- TI - Cumulative Cash Flow - CF- Pol - Cumulative Cash Flow - This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 9 of 11

10 Term Insurance and Date: 8/13/213 Presented By: National Life For: The Client 75 Year Graphic Analysis $4,4, $4,162,38 $3,3, $2,2, $1,1, NP TI Years SV $45,95 N P - Payments (Cumulative) TI - Values S V - Surrender Values This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 1 of 11

11 Term Insurance and Date: 8/13/213 Presented By: National Life For: The Client 75 Year Graphic Analysis $4,4, $4,349,674 $3,3, $2,2, $1,1, NP TDB PDB Years $45,95 N P - Payments (Cumulative) TD B - Term Plus P DB - This illustration assumes all values shown are not guaranteed and continue in all years. This is not likely, and actual results may be more or less favorable. This illustration is not valid unless accompanied by a full illustration. Page 11 of 11