Paul Bohlen walks through the PFF GPS spreadsheet that calculates cash value and loan availability for AUL annual life insurance policies. AUL annual policies release only 1/12 of base annual growth each month, so the spreadsheet subtracts 11 months of withheld growth to show what's actually usable. He uses real numbers from an illustration to show the math: $5,057 annual growth divided by 12 equals $379 in monthly usable value after the 90% haircut.
Questions this video answers
$6,750 (contract premium for five years).
$5,057 (39,615 − 34,558).
$6,219 (2026 minus 2025 growth example).
Annual base growth 5,057 divided by 12 (5057/12).
$379 (90% of 5057/12).
You know, this video concerns the AUL illustration for the cash value that the policy has for use on our PFF GPS spreadsheet that we build. So on the bottom half of the screen you see this is the Excel spreadsheet about the AUL policy. And on the top half of the screen, this is the illustration from AUL that where we get the values from the contract premium, the 6750 that's here for the five years. The illustration cash value is the number here, the total net cash value. This is without loan. So this is all gross numbers. You know, the 80, the 86, 92, 99. The spreadsheet automatically calculates the the difference or the growth between the year, the next year and the previous year. So the year 2026 minus the year 2025, that's a growth of $6,219. So on an AOL annual policy, because of the way they free up the cash flow, we have to calculate what's available to borrow a little bit differently because what they do is they Only release 1/12 of the base growth per month. So to get the base growth, you look at the guaranteed side of the illustration and you look at the cash value. And next year's cash value is 39K. This year's cash value is 34K. So that's a growth of about 5,000. That's the part that they hold 1:12 back per month. So when we go to calculate the column that says loan minus cash value rate or not minus the loan cash value rate, we have to calculate this magenta sell a little bit differently. So what we do is we figure out first what's the base gross growth. And this 50, 57, that's the 39, 615 minus the 34, 5, 5, 8. So that's telling us the growth is exactly $5,057 in the year. The next line is, all right, how much growth then per month? So we take that number and divide it by 12, which you can see in the formula, it's the 5057 divided by 12. So we know that's our monthly growth. And then because we use 90% of the cash value, here's 90% of that monthly growth and that's $379. So in month one, we're only going to get one month's worth of the growth. And this number assumes all years growth. So I have to take the the calculation where we do 90% of the 62, 19 and then subtract out 11 months of this monthly total. So it's 379 times 11 is subtracted out. And I highlight the answer in magenta just to show that this is not the normal calculation. We would think it would be a lot higher, but it's not, because they don't release it. And we only do it for the next policy year. Because what happens is you get to the end of this year, and you'll get the rest of this year's money, and you won't get some of next year's money. So it kind of works its way out. So we only worry about the coming year, what. What the difference is. And so this is an exception only for aul, and only if it's an annual policy.
