Whole Life Banking vs Conventional Banking Calculator

Whole Life Banking™ vs Conventional Banking

Same income. Same purchase. Different banker. This calculator shows how bank interest you normally export can be recaptured, used to buy Paid-Up Additions, and compound inside a Whole Life Banking policy.

Basic Inputs

Monthly Deposit / Premium Loan Amount (purchase financed) Loan Term (months)

Rates

Bank Savings Rate (annual %) Policy Cash Value Rate (annual %) Bank Loan Rate (annual %)

Tax, Inflation & PUA

Income Tax on Bank Interest (%) Inflation Rate (% per year) PUA Cash Value Factor (% of PUA to cash value) PUA Death Benefit Factor (DB per $1 of PUA) (e.g. 3 means $1 of PUA buys about $3 of additional death benefit, varies by age/health.)

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Interest Exported vs Recaptured & Turned into PUA

Same loan amount, same term, same payment. In the bank world, all interest goes to the bank’s owners. In Whole Life Banking, we assume you run the loan through your policy, so that same interest is used as Paid-Up Additions (PUA). About 90% of each PUA dollar shows up as cash value, and the rest increases death benefit for your beneficiaries.

Bank Loan	Value
Monthly Payment
Months to Pay Off
Total Interest Paid to Bank

Whole Life Banking View

If the same loan is run through a properly structured Whole Life Banking policy:

• Interest recaptured is the same amount you would have paid to the bank.
• That interest is treated as PUA premium, buying extra cash value and death benefit.
• PUA cash value then compounds at the policy’s cash value rate for as long as it stays in force.

Total interest recaptured as PUA:

Approx. added cash value from PUA (90% of PUA):

Approx. added death benefit from PUA:

Six Wealth Leaks: market losses (#1), taxes on interest (#2), interest to banks (#3), interrupting compounding by spending principal (#4), inflation (#5), and inefficient spending where the earner, spender, and beneficiary are different people (#6). Whole Life Banking is designed to keep your savings off the market rollercoaster, grow them tax-advantaged, redirect loan interest back into PUAs, keep cash value compounding, help offset inflation, and let you effectively spend your own money on yourself by borrowing against your own cash asset in a mutual company.

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Long-Term Capital: Bank vs Whole Life Banking

Below, the same monthly amount is saved for 5, 10, 20, and 30 years. In the bank column, savings grow at the after-tax bank rate. In the Whole Life Banking column, savings grow at the policy cash value rate plus the extra cash value created when recaptured loan interest is used to buy PUAs and compound over time.

Horizon	Bank Assets	Whole Life Banking Assets	Disparity (WLB − Bank)	Real WLB Disparity*
5 years
10 years
20 years
30 years

Key Assumptions (Educational Only)

• Rates are held constant to illustrate structure, not to predict any specific company’s performance.
• Bank savings interest is taxed annually at the income tax rate you enter; inflation reduces the real value of all nominal balances.
• Whole Life Banking assumes a participating whole life policy with a mutual insurer; policyholders mutually own the financial assets.
• All loan interest that would have gone to the bank is treated as PUA premium inside the policy (“full interest recapture”).
• PUA cash value factor approximates how much of each PUA dollar is allocated to cash value (commonly around 90% in banking designs).
• PUA death benefit factor approximates the additional death benefit per $1 of PUA, which in reality depends on age, underwriting, and product.
• The monthly simulation compounds bank savings at the after-tax bank rate and Whole Life Banking cash value at the policy rate, plus extra PUA cash value from recaptured interest.
• This is an educational model, not a substitute for a carrier illustration, tax advice, or personalized planning.