What death benefit is cited for premature death in the example?

Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Understanding Insurance Projections for Cash Value Life Insurance

8 Sept 2024 · 1 min

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0:32

A short advisor commentary (Craig Wear, CFP®) about reading and questioning cash-value life insurance projections. Key points: verify the assumptions behind illustrations (current vs. historical interest rates), prefer conservative (low) interest-rate assumptions when evaluating projections, and consider real-world outcomes — in an example, a premature death would have resulted in nearly $500,000 of death benefit, which made the policy advantageous for the client.

Questions this video answers

Almost $500,000.

Chapters

The project. You have to be careful the projections. You'll know what kind of policy you're getting and what are the assumptions that are used. Are they using current interest rates? Are they using historical? I like to see, when people run illustrations, I like to see them use a really low rate of interest, because typically that's what you end up getting out of those. And on this particular case, if they die prematurely, their errors would get like almost $500,000 in death benefit. It turned out to be a good deal for them. And there were clients long enough. I got to see that work out in bear fruition. And the plan was beautif for.