Whole Life Banking Policy Calculator

Whole Life Banking – 7-Pay Example Calculator

Whole Life Banking – 7-Pay Example Calculator

Enter an annual premium to see an illustrative 7-pay Whole Life Banking policy. Premiums are paid for the first 7 years only. Cash value and death benefit are scaled from a sample policy and extended to 30 years with simplified growth. This is educational only, not an actual quote or guarantee.

Optional: Policy Loan & Over-Repayment
Extra interest you choose to pay above the company’s loan rate is treated as Paid-Up Additions (PUA) in the year the loan is fully repaid. PUAs boost both cash value and death benefit.
PUA & Death Benefit Settings
Extra interest is approximated as loan amount × (your repay rate − policy loan rate) × loan term. That total is treated as a one-time PUA in the payoff year, split by the percentages below. The PUA portion to death benefit is multiplied by the death-benefit multiplier to reflect life-insurance leverage.
This calculator uses simplified, non-actuarial formulas and a scaled example from a 7-pay whole life design. Real policies depend on age, health, company, product, guarantees, and dividend performance.

Comments

Post a Comment

Popular posts from this blog

Policy Comparison Calculator

Whole Life Banking – Comparative Illustration Calculator Whole Life Banking – Comparative Illustration Calculator Educational illustration engine: baseline policy values vs. the same policy with policy loans + higher-rate repayment treated as PUAs (split between Cash Value and Death Benefit). Not a quote, not actuarial, not a guarantee. Inputs Readable • Stacked Policy Assumptions Core Start age Projection years Annual premium / outlay ($) Pay years (7-Pay default) Base CV growth rate (guaranteed-style, %) Dividend add-on (illustrative, %, can b...
Read more

Should You Really “Buy Term and Invest the Difference”?

Most financial experts recommend “buy term and invest the difference,” but this advice fails most families. Term premiums start low, about $30/month at age 40 for $500,000 coverage, but rise sharply to $150 - $400/month at age 60, and up to $800/month after 65. Most people drop coverage as it gets expensive, losing all benefits. Over a lifetime, the average person pays $10,000–$20,000 or more in term premiums and receives nothing if they outlive the policy. As part of this mainstream strategy, people are told to put the “difference” (what you’d pay for whole life insurance premiums, for example) into 401(k)s, IRAs, CDs, bonds, and other investments, often spreading savings across multiple accounts and vehicles. But these assets are subject to market fluctuations, taxes, penalties, and are typically spent down in retirement. Average lifetime savings of $150,000 may experience exceptional growth throughout your life or they may experience periodic losses due to market downturns. To finan...
Read more