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RETIREMENT SAVING PROPOSAL

Page 1 Confidential Proposal – Not For Use With The Public

HAI VO AGENCY WITH NEW YORK LIFE

To: Vipin Gupta, Associate Dean of Management Department, CBPA, CSUSB

From: Hai Vo, Registered Representative, New York Life

Date: Wednesday June 11, 2014

Subject: Retirement Saving Proposal

Retirement is the hottest topic nowadays as both Federal and States keep warning about the

unfunded accrued liabilities of the pension plans. The professors of California State University

of San Bernardino have worked hard for entire of their lives and should have had happily

retirement years. Unfortunately, economics’ down turn and State’s budget crisis have affected

all the retirement planning processes of all generations.

Planning for the future is never as essential as right now. Hai Vo Agency, with its community

duties and responsibilities, want to present a Retirement Saving Proposal to help with financial

planning for all the faculties of Management Department. Government’s pension plans cannot

be fixed by the efforts of the employees in Management Department; however, we can at least

strengthen the financial independent of the faculties by implementing an appropriate

retirement saving plan. Please spend fifteen minutes of your valuable time to review the

attached proposal so that you can be more confident to move forward to the next step.

Enclosures: Retirement Saving Proposal

RETIREMENT SAVING PROPOSAL

Page 2 Confidential Proposal – Not For Use With The Public

RETIREMENT SAVING PROPOSAL

Page 3 Confidential Proposal – Not For Use With The Public

EXECUTIVE SUMMARY

Hai Vo Agency was founded in 2012 and is dedicated to serve the insurance and financial needs

of individuals, families, and businesses. Our principal office is located in San Bernardino.

Business Services:

Hai Vo Agency offers a six key features financial analysis for individuals and families as well as a

full service package for businesses like Buy-Sell Funding, Voluntary Payroll Deduction Programs,

and Qualified Plan Funding etc…

Competitive Advantages:

Hai Vo is a current student of California State University of San Bernardino so he has many

chances to talk to the professors of California State University of San Bernardino from different

colleges and departments, hence give him a better understanding of the increasing need for a

successful retirement of the professors, especially from Management Department.

Driven by the desire to give back to the University that provides him with better knowledge and

opportunities, Hai Vo has been through many training programs from New York Life Company

that specialized for California Teachers like Pension Max, Increasing Success in the 403(b)

Market…

Hai Vo Agency is backed by New York Life, one of the oldest insurance companies in America

since 1845. New York Life has honored its commitment to its policy owners through the Civil

War, two World Wars, the Great Depression, and numerous recessions. New York Life

Insurance Company and its subsidiary, New York Life Insurance and Annuity Corporation have

received the highest ratings currently awarded to any life insurer by all four major ratings

agencies.

Since our office is in the same venue with California State University of San Bernardino, we can

provide better services like seminars, workshops and annual review.

Risk and Opportunity:

The greatest risk associated with Hai Vo Agency is newly established. Hence, Hai Vo Agency

lacks book of businesses and reputation to have referrals on a regular basic. This also is our

biggest recognized opportunities: Hai Vo Agency has more time dedicated to serving the needs

of all California State University of San Bernardino faculties.

RETIREMENT SAVING PROPOSAL

Page 4 Confidential Proposal – Not For Use With The Public

TABLE OF CONTENTS

Executive Summary ………………………………………………………………………………………................3

INTRODUCTION

The funding gap of government pension plan...................................................................5

The State Budget Crisis that affect retirement planning...................................................5

The voluntary saving plan is unattractive..........................................................................6

THE RETIREMENT SAVING PROPOSAL

The benefit of using life insurance to fund retirement plan.............................................6

HOW TO IMPLEMENT THE RETIREMENT SAVING PLAN………………………….………………….. 7

CONCLUSION.…………………………………………………………...…………………………………………………7

REFERENCES.………………………………...……………………………………………………………………………..8

APPENDIX A: INFORMED CONSENT FORM……………………...……………………………………………9

APPENDIX B: PRIMARY RESEARCH INSTRUMENT………………...……………………………………..10

APPENDIX C: SAMPLE POLICY………………………………………………………………………………..11-13

RETIREMENT SAVING PROPOSAL

Page 5 Confidential Proposal – Not For Use With The Public

Do you have enough savings for your retirement?

The financial turmoil affects funding gap of both States and Federal pension plans. Moreover,

the Stage budget crisis affects California State University San Bernardino Professors’ salaries as

Vann stated in his research “most California educators have seen cuts in salary and increases in

workload” (4). Last but not least, the voluntary California State University of San Bernardino’s

saving plans are unappealing. Hai Vo Agency is here to present the new face of retirement

process which reveals the solutions for the insecurity future from today action with this

retirement saving proposal. In conclusion, professors are typically relied on two pillars for their

retirement: pension plan and personal savings; however, these pillars are no longer existed or

are not fully doing the job that they are supposed to do. The saving program using life

insurance from New York Life Company will help CSUSB professors to achieve future financial

security.

A. The funding gap of government pension plan:

The two successive financial downturns in the last decade make people now worry more about

their retirement. Furthermore, The Bond Buyer claimed that: “San Bernardino city is the first

California city to attempt to impair the pension fund in bankruptcy proceedings. Neither

Vallejo, which exited bankruptcy in August 2011, nor Stockton, slated for a May 2014

confirmation hearing on its exit plan, attempted to impair CalPERS” (“Tortoise of Bankruptcy

Cases”). Both State and Federal biggest pension plans like CalPERS, CalSTRS and Social Security

are currently underfunded their accrual liability. There are steps that have already taken to

remedy the unfunded issue. However, these steps take time and we cannot guarantee that it

will work! Money Management Letter raised their concern that the legislature has to approve

the proposal for remedies, which means that the individual itself cannot do anything except

raise our voice and wait for the decision (“Plans Pension Funding Talks”). This is a systematic

problem that worries old and new generations.

B. The State Budget Crisis that affect retirement planning:

The State Budget Crisis that lowers the salary of

professors which ultimately decreases the saving

portion of the employees. Now, in order to fix

the unfunded issue, teachers have to contribute

more in the next 30 years to fill the liability gap

(“Funding the Future”). That’s why 85.71% of

participants saying that they do not save enough

14.29%

85.71%

Yes

RETIREMENT SAVING PROPOSAL

Page 6 Confidential Proposal – Not For Use With The Public

for their retirement. 92.86% people admit that their standard of living will decrease when they

retired. An average 53% annual income of the last worked year (“Funding the Future”) defined

benefits for retirees simply cannot be replaced by personal saving in the long term. All these

statistics prove that the need for a solution of happily retirement exists even in CSUSB

professors.

C. The voluntary saving plan is unattractive:

Since there are no matching (“Savings Plans”) for voluntary qualified plan like 403(b) or 401(k),

this saving vehicle is just attractive to professors that have sufficient knowledge and fully

understand how the market works. Another matter to think about is the time horizon. Statistics

showing that investment is for long term. The risk of investment less than 10 years is like

gamble. Belski proves that "Historical evidence suggests that longer investment horizons

typically produce better results" (Shell).

With the current situation, the new face of retirement has come. We need to make our own

pillar for our retirement. 78.57% of participants in the primary research agree that they need to

save 10% or more of their salary for their retirement and 100% of them agree that we have to

save now in order to have money in the future. The only question left is the issue of where the

money should go.

The benefit of using life insurance to fund retirement plan:

Compare to other vehicles, life insurance has these benefits:

 Flexibility: you can set up a systematic withdrawal like a payment plan or you can invest

any amount you want.

 Safety: There are guaranteed no loss if you fund the policy correctly.

 Decent yield: the fix account is better than a bank CD and the variable universal life

policy has the market return if invested long enough.

 Liquidation: cash surrender value is yours to decide. You have your own bank in your

policy. You can either surrenders it for money, convert it into an annuity, partial

withdrawal or have a loan.

 Tax defense: cash value in a life insurance contract is tax free if it is not a modified

endowment contract and life insurance companies have so many techniques to help

their clients to avoid this issue.

RETIREMENT SAVING PROPOSAL

Page 7 Confidential Proposal – Not For Use With The Public

 Self-completed: if you get disability, the insurance company will help you to fund the

saving plan.

 Premature death protection: if you die prematurely, the death benefit will protect your

human asset and give it to your family.

Below is the comparison chart of life insurance versus other investment choices:

Features Life

Insurance Gold/Diamond Bank

CD Mutual

Fund IRA Real

Estate Currency

Flexibility Y N N Y Y N Y

Safety Y N Y N N Y N

Decent Yield Y Y N Y Y Y Y

Liquidation Y Y N Y N N Y

Tax Defense Y N N N Y Partial N

Self Completed Y N N N N N N

Premature Death Protection Y N N N N N N

Each of the professors will spend 10% of their annual salary to fund a life insurance policy. A

sample policy for a 35 year old male is attached for references. With the funding process until

they are retired and then they can take money out without paying any taxes.

A leverage of 4 times of the amount they put in in the next 20 years of retirement, not to

mention that they have life insurance protection for their family is an option that you need to

think about since 71.43% of the participants saying that they do not have enough life insurance.

The success of a saving plan is not based on how much it yield but depended on the systematic

contribution free from the temptation of spending it. In other words, financial discipline is a key

to success for any saving plans. Hai Vo Agency is here to present the alternative option for

retirement saving that outmatch other saving plans and vehicles. The cost of waiting is more

detrimental to the saving plan as the compound interest of the later years is essential. Our

proposal has all the required characteristics of a perfect saving plan. The decision is yours!

Thank you very much for your business.

RETIREMENT SAVING PROPOSAL

Page 8 Confidential Proposal – Not For Use With The Public

REFERENCES

"Calif. Governor Plans Pension Funding Talks." Money Management Letter, (2014): Web. 11 Jun.

2014.

"Funding the Future." - CalSTRS.com. N.p., n.d. Web. 11 June 2014.

"San Bernardino is Tortoise of Bankruptcy Cases." The Bond Buyer, 123.34078 (2014): Web. 11

Jun. 2014.

"Savings Plans." – CSUSB Human Resources. N.p., n.d. Web. 11 June 2014.

Shell, Adam. "Holding Stocks for 20 Years Can Turn Bad Returns to Good -

USATODAY.com." USATODAY, 06 Aug. 2911. Web. 11 June 2014.

Vann, Burrel James, Jr. The CSU Budget Crisis and Student Protest. n.p.: ProQuest, UMI

Dissertations Publishing, 2012.

RETIREMENT SAVING PROPOSAL

Page 9 Confidential Proposal – Not For Use With The Public

APPENDIX A: INFORMED CONSENT FORM

My name is Hai Vo, and I am a student at CSUSB. I am inviting you to participate in an academic

research study. Involvement in this study is voluntary, so you may choose to participate or not.

A description of this study follows: Increase California State San Bernardino Professors’ Future

Financial Securities by implementing a saving program using life insurance. I am interested in

learning more about real life information to create a sound proposal. My learning objectives are

related to my formal education pursuits. This information will be used in a business proposal for

my upper- division writing class Management 306: Expository Writing for Administration during

the Spring quarter 2014.

You will be answered a brief interview/survey regarding your finance. This will need roughly 15

to 20 minutes. There are NO risks to while participating in this study.

If you no longer wish to continue, you have the right to withdraw from the study, without

penalty, at any time. All information for this study will be kept confidential. You have the option

to have a copy of my proposal for your reference by indicating it during the interview.

I have been assured that the information I provide in this study will be destroyed after the

researcher consolidates data. There will be no permanent record of my participation in this

study.

I ________________________________ am a willing participant in this study.

Signature of participant: __________________________________

Date: ____________________________

Print name of participant: _________________________________

Signature of researcher: __________________________________

Date: ____________________________

Print name of researcher: _________________________________

RETIREMENT SAVING PROPOSAL

Page 10 Confidential Proposal – Not For Use With The Public

APPENDIX B: PRIMARY RESEARCH INSTRUMENT

Basic Information

Name: _______________________________________________________________________

Age Range: Up to 35 35-55 55 or above

Questionnaire

1. Household’s income range:

Less than $100,000 $100,000-$200,000 More than $200,000

2. Do you happy with your current retirement plan? Yes No

3. Do you think your saving is enough for your retirement? Yes No

4. Compare with your current standard of living, what will be your standard of living when

you retired? Higher The Same Lower

5. Do you agree that you have to save money now in order to have money to spend in the

future? Yes No

6. How many percent of you income that you think you need to save on a regular basis?

Less than 10% 10-20% More than 20%

7. Do you have life insurance at least 10 times of your annual salary? Yes No

RETIREMENT SAVING PROPOSAL

Page 11 Confidential Proposal – Not For Use With The Public

New York Life Insurance Company New York Life Custom Whole Life Insurance Basic Illustration

Supplemental Illustration of Surrenders of Paid-Up Additional Insurance and Loans for Hai Vo

Page 16 of 29

This illustration shows the continuation of the currently illustrated non-guaranteed elements and is neither an estimate nor a guarantee of future performance. These non-guaranteed elements are subject to change by the company. In the future, the actual non-guaranteed elements and results may be more or less favorable than those shown in the illustration.

Refer to the "About Your Illustration" section for more information about the factors that may affect policy performance. FTIS v2014.1.7 .0, Prepared on 06/11/2014 @ 9:37 PM (Hai Vo, Male, 35, Non-Smoker, AD113)

Prepared by Hai Vo

& Represents the insured's life expectancy added to the insured's issue age. See Important Notes in the Basic Illustration for additional information. Values shown are based on our current illustrative dividend scale and our current OPP expense charge of 8.00%. These values are not guaranteed and are subject to change.

*The premium payment amount is assumed to be completely or partially paid through the use of dividend values in the year(s) marked with an asterisk (*). This does NOT make the policy paid-up, make the policy a guaranteed limited premium payment policy, nor reduce the number of premiums that must be paid. Future dividends and future OPP expense charges may be different than those illustrated, and the change may result in the

need to continue or resume premium payments on the base policy after the initial suspension of such premium payments.

This policy has been checked for all years and is NOT a Modified Endowment. Any future premium payments, face amount or rider changes could affect this. Scenario C illustrates the dividend at 100% of the current dividend scale and a current loan interest rate of 5.00%.

Scenario B illustrates the dividend at 90% of current dividends and a loan interest rate of 7.00%. Scenario A illustrates 80% of current and a loan interest rate of 9.00%.

Policy performance over time may be affected by dividends which are not guaranteed, and the policy loan interest rate, which is a variable interest rate. Please see your policy for more information on the policy loan interest rate and how it may change. The following scenarios are depicted above:

This supplemental illustration shows the impact of a policy loan starting in year 37 in the amount of $39,592.00. Please see the impact of this loan under different dividend and loan interest rate scenarios and refer to the Cash Flow Supplemental Illustration for more information.

This supplemental illustration shows the surrender of paid up additional insurance for its cash value. The amount payable to you appears in the column "Policy Cash Flow", and the resulting policy values after the surrender is made are shown in the columns labeled "Cash Surrender Value" and "Death Benefit".

Premium Payment Mode: Annual

Yearly

Guaranteed

Premium

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Scenario A: Dividend Assumption: 80% of Current

Dividend Scale

Loan Interest Rate of 9.00%

Scenario B: Dividend Assumption: 90% of Current

Dividend Scale

Loan Interest Rate of 7.00%

Scenario C: Dividend Assumption: 100% of Current

Dividend Scale

Loan Interest Rate of 5.00%

Year Age

10,000

7,747

15,941

24,681

33,920

43,738

54,166

65,223

76,810

89,061

101,994

115,656

130,053

145,232

161,232

178,172

196,011

214,789

548,277

553,472

559,216

565,887

573,127

581,137

589,961

599,577

609,545

620,261

631,711

643,862

656,628

669,820

683,463

697,834

712,744

10,000

7,895

16,269

25,227

34,721

44,843

55,627

67,095

79,130

91,897

105,413

119,730

134,853

150,830

167,703

185,614

204,512

224,451

548,277

554,127

560,617

568,143

576,323

585,397

595,404

606,320

617,626

629,813

642,848

656,708

671,276

686,356

701,969

718,439

735,532

10,000

8,043

16,591

25,769

35,519

45,942

57,080

68,960

81,455

94,747

108,854

123,837

139,702

156,496

174,267

193,172

213,168

234,316

548,277

554,783

561,997

570,383

579,509

589,635

600,819

613,034

625,722

639,409

654,061

669,657

686,075

703,095

720,739

739,363

758,737

I L L U S T O R I G 1 6

APPENDIX C: SAMPLE OF LIFE POLICY

RETIREMENT SAVING PROPOSAL

Page 12 Confidential Proposal – Not For Use With The Public

New York Life Insurance Company New York Life Custom Whole Life Insurance Basic Illustration

Supplemental Illustration of Surrenders of Paid-Up Additional Insurance and Loans for Hai Vo (Continued)

Page 18 of 29

Prepared by Hai Vo

need to continue or resume premium payments on the base policy after the initial suspension of such premium payments.

Scenario B illustrates the dividend at 90% of current dividends and a loan interest rate of 7.00%. Scenario A illustrates 80% of current and a loan interest rate of 9.00%.

Premium Payment Mode: Annual

Yearly

Guaranteed

Premium

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Scenario A: Dividend Assumption: 80% of Current

Dividend Scale

Loan Interest Rate of 9.00%

Scenario B: Dividend Assumption: 90% of Current

Dividend Scale

Loan Interest Rate of 7.00%

Scenario C: Dividend Assumption: 100% of Current

Dividend Scale

Loan Interest Rate of 5.00%

Year Age

84&

-39,592

-13,381

22,091

23,464

24,818

26,248

27,740

29,308

30,868

32,530

34,232

333,854

305,964

274,541

239,214

199,567

155,166

105,508

50,067

16,790

17,714

18,682

19,615

20,573

21,561

22,656

23,746

24,858

25,989

528,371

500,868

469,935

435,194

396,238

352,651

303,977

249,790

215,857

213,250

210,667

208,115

205,549

202,997

200,534

198,259

196,241

194,533

-39,592

-23,359

14,721

15,806

16,954

18,074

19,300

20,554

393,335

372,163

348,874

323,276

295,153

264,284

230,416

193,298

152,610

108,065

59,332

23,418

24,587

25,802

27,146

28,487

29,865

31,270

590,816

569,297

545,574

519,423

490,615

458,929

424,116

386,003

344,426

299,148

249,900

212,678

210,030

207,361

204,753

202,317

200,129

198,253

-39,592

454,495

438,149

420,784

402,312

382,623

361,620

339,183

315,218

289,551

262,074

232,639

201,069

167,269

172,668

177,717

182,277

186,253

189,602

704,762

686,753

667,488

646,820

624,605

600,723

575,040

547,531

518,215

487,020

453,861

418,706

381,283

381,065

380,376

379,419

378,147

376,591

I L L U S T O R I G 1 8

New York Life Insurance Company New York Life Custom Whole Life Insurance Basic Illustration

Supplemental Illustration of Surrenders of Paid-Up Additional Insurance and Loans for Hai Vo (Continued)

Page 17 of 29

Prepared by Hai Vo

need to continue or resume premium payments on the base policy after the initial suspension of such premium payments.

Scenario B illustrates the dividend at 90% of current dividends and a loan interest rate of 7.00%. Scenario A illustrates 80% of current and a loan interest rate of 9.00%.

Premium Payment Mode: Annual

Yearly

Guaranteed

Premium

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Scenario A: Dividend Assumption: 80% of Current

Dividend Scale

Loan Interest Rate of 9.00%

Scenario B: Dividend Assumption: 90% of Current

Dividend Scale

Loan Interest Rate of 7.00%

Scenario C: Dividend Assumption: 100% of Current

Dividend Scale

Loan Interest Rate of 5.00%

Year Age

30*

31*

32*

33*

34*

35*

36*

10,000

-39,592

234,539

255,282

277,056

299,883

323,806

348,867

375,110

402,569

431,274

461,267

492,557

473,958

457,364

439,720

421,016

401,227

380,351

358,532

728,297

744,466

761,325

778,894

797,134

816,022

835,344

855,125

875,422

896,336

917,961

846,918

796,637

746,956

697,781

649,035

600,661

552,633

10,000

-39,592

245,476

267,617

290,921

315,407

341,136

368,143

396,485

426,203

457,342

489,961

524,069

508,448

494,913

480,406

464,915

448,416

430,903

412,550

753,388

771,984

791,412

811,694

832,774

854,649

877,069

900,073

923,718

948,135

973,435

906,235

859,892

814,092

768,733

723,734

679,041

634,618

10,000

-39,592

256,668

280,260

305,154

331,379

358,999

388,049

418,596

450,692

484,402

519,800

556,906

544,467

534,219

523,106

511,112

498,213

484,403

469,881

779,004

800,143

822,249

845,367

869,443

894,465

920,159

946,567

973,763

1,001,903

1,031,123

968,047

925,950

884,369

843,197

802,342

761,753

721,382

I L L U S T O R I G 1 7

RETIREMENT SAVING PROPOSAL

Page 13 Confidential Proposal – Not For Use With The Public

New York Life Insurance Company New York Life Custom Whole Life Insurance Basic Illustration

Supplemental Illustration of Surrenders of Paid-Up Additional Insurance and Loans for Hai Vo (Continued)

Page 19 of 29

Prepared by Hai Vo

need to continue or resume premium payments on the base policy after the initial suspension of such premium payments.

Scenario B illustrates the dividend at 90% of current dividends and a loan interest rate of 7.00%. Scenario A illustrates 80% of current and a loan interest rate of 9.00%.

Premium Payment Mode: Annual

Yearly

Guaranteed

Premium

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Scenario A: Dividend Assumption: 80% of Current

Dividend Scale

Loan Interest Rate of 9.00%

Scenario B: Dividend Assumption: 90% of Current

Dividend Scale

Loan Interest Rate of 7.00%

Scenario C: Dividend Assumption: 100% of Current

Dividend Scale

Loan Interest Rate of 5.00%

Year Age

100

101

102

103

104

105

106

107

35,994

37,807

39,646

41,535

43,556

45,584

47,641

49,732

51,750

53,972

56,275

6,071

6,493

6,930

7,346

7,740

8,135

8,498

27,126

28,167

29,204

30,181

31,236

32,361

33,374

34,562

35,648

36,785

37,900

39,094

40,324

41,614

42,991

44,417

45,930

47,521

193,180

192,222

191,540

191,023

190,665

190,530

190,700

191,075

191,548

192,147

192,981

141,544

141,343

141,080

140,758

140,379

139,969

139,524

21,864

23,234

24,645

26,109

27,717

29,316

30,929

32,589

34,148

35,931

37,781

3,524

3,947

4,378

4,794

5,180

5,565

5,917

32,678

33,978

35,274

36,501

37,827

39,240

40,533

42,030

43,408

44,856

46,283

47,812

49,396

51,049

52,812

54,641

56,575

58,598

196,738

195,631

194,813

194,150

193,634

193,337

193,351

193,586

193,901

194,328

194,990

159,795

159,970

160,068

160,094

160,046

159,958

159,823

192,185

193,742

194,297

193,659

191,827

188,764

184,139

178,258

170,803

161,644

150,526

153,402

155,856

157,867

159,480

160,644

161,380

161,687

374,757

372,589

369,840

366,205

361,451

355,657

348,887

340,924

331,663

320,824

308,396

294,354

295,065

295,164

294,649

293,525

291,803

289,488

I L L U S T O R I G 1 9

New York Life Insurance Company New York Life Custom Whole Life Insurance Basic Illustration

Supplemental Illustration of Surrenders of Paid-Up Additional Insurance and Loans for Hai Vo (Continued)

Page 20 of 29

Prepared by Hai Vo

need to continue or resume premium payments on the base policy after the initial suspension of such premium payments.

Scenario B illustrates the dividend at 90% of current dividends and a loan interest rate of 7.00%. Scenario A illustrates 80% of current and a loan interest rate of 9.00%.

Premium Payment Mode: Annual

Yearly

Guaranteed

Premium

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Premium

Outlay

Policy Cash

Flow

Cash

Surrender

Value

Death

Benefit

Scenario A: Dividend Assumption: 80% of Current

Dividend Scale

Loan Interest Rate of 9.00%

Scenario B: Dividend Assumption: 90% of Current

Dividend Scale

Loan Interest Rate of 7.00%

Scenario C: Dividend Assumption: 100% of Current

Dividend Scale

Loan Interest Rate of 5.00%

Year Age

108

109

110

111

112

113

114

115

116

117

118

119

120

121

8,849

9,186

9,490

9,783

10,036

10,270

10,452

10,619

10,730

10,826

10,856

10,859

10,572

3,064

49,183

50,952

52,793

54,758

56,807

59,002

61,288

63,732

66,276

68,995

71,848

75,155

76,442

110,399

139,055

138,572

138,080

137,599

137,122

136,670

136,238

135,848

135,494

135,200

134,953

134,775

134,734

125,557

6,261

6,584

6,877

7,159

7,390

7,605

7,762

7,906

7,985

8,046

8,032

7,991

7,620

297

60,718

62,961

65,294

67,781

70,371

73,134

76,009

79,076

82,269

85,675

89,241

93,329

95,153

137,154

159,653

159,460

159,248

159,043

158,834

158,649

158,476

158,348

158,252

158,220

158,234

158,324

158,559

149,683

161,551

161,006

160,011

158,636

156,842

154,713

152,211

149,427

146,324

143,010

139,485

136,165

130,271

187,757

286,579

283,088

279,028

274,413

269,264

263,601

257,457

250,855

243,836

236,430

228,682

220,635

212,720

202,374

I L L U S T O R I G 2 0