cashback life insurance
State Exception
Protection and return-of-premium:
The best of both worlds!
What is Cashback Life?
Return
of
Premium
Protection and return-of-premium:
The best of both worlds!
“I am more concerned with the return of my money than the return on my money.” — Mark Twain
Cashback Life 20 and 30 address both of Mark Twain’s concerns ...
“Return of my money” and “Return on my money”
Protection and return-of-premium:
The best of both worlds!
Cashback Life 20 and 30 offers an excellent alternative to traditional term life insurance.
Protection and return-of-premium:
The best of both worlds!
What is traditional term life insurance? •
Simplest form of life insurance
•
Lowest cost life insurance
•
Provides coverage for a specified period of time – i.e., 10, 15, 20 or 30 years
•
No Return of Premium
How is Cashback Life different? •
Provides coverage for a specified period of time – either 20 or 30 years
•
At the end of the policy’s term period you receive 100 percent of the premiums paid* – a “return of your money”
*Excludes riders and substandard premiums.
Protection and return-of-premium:
The best of both worlds!
How Cashback Life works ... Death Benefit
money
All your money is returned! m
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20 or 30 years
Protection and return-of-premium:
The best of both worlds!
Which type of life insurance protection is best for you? It depends on how long you plan on keeping the coverage in force. •
When comparing ongoing premium payments of the two types of life insurance policies, there will be a year in which the total net cost of the Cashback Life becomes less than the total net cost of a traditional term policy.
•
This is referred to as the “Crossover Point.”
Protection and return-of-premium:
The best of both worlds!
How the “Crossover Point” works ... •
Male Age 30 Standard Nontobacco $250,000
•
Premiums
– Level 20 Term: $32 monthly premium – Cashback Life 20: $80.62 monthly premium
Level 20
Age
Year
Premium Outlay
31 32 33 34 35 40 41 42
1 2 3 4 5 10 11 12
384 384 384 384 384 384 384 384
Cashback Life 20
Total Net Cost 384 768 1,152 1,536 condensed 1,920 3,840 4,224 4,608
for
Premium Outlay
Cash Value
Total Net Cost
967.44 967.44 967.44 967.44 example 967.44 967.44 967.44 967.44
0 0 0 0 815.00 6,270.00 7,472.50 8,707.50
967.44 1,934.88 2,902.32 3,869.76 4,022.20 3,404.40 3,169.34 2,901.78
In this example, if the insured plans on keeping the coverage in force for 10 years or longer – his total net cost is less with the Cashback Life 20. *The crossover point may be shorter or longer based on age, gender and rate class.
Crossover Point*
Protection and return-of-premium:
The best of both worlds!
What if ... Could you do better buying the lower cost term and saving the difference?
Perhaps ... Let’s look at the 30-year-old male again.
$250,000 Life Insurance
Level 20 Term Insurance
Cashback Life 20
$32 monthly premium
$80.62 monthly premium
Difference = $48.62
If still living in 20 years, receive $0.
If still living in 20 years, receive $16,050 tax-free.
Assuming a 30% tax bracket this equates to a 6.57 return*.
*The before tax return may be higher or lower based on age, gender and rate class.
Protection and return-of-premium:
The best of both worlds!
Can you access the policy’s cash value before the end of the 20 or 30 years? Yes. You can borrow funds from the Cashback Life 20 or 30 policy in the event of an emergency cash need such as making a mortgage payment.*
*If available, loans reduce the Cashback Life’s death benefit and cash value available for use.
Protection and return-of-premium:
The best of both worlds!
What Cashback Life 20 and 30 can offer you ... Both a return of your money, as well as an excellent return on your money!
Mark Twain would be pleased!
Questions?
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