1 |
INTEREST RATES EARNED | |
| Carrier Crediting Rate on money received. | ||
2 |
BANK CD | |
| Rate of interest earned on the amount STP has to pay the Bank on the first day to collaterlize the Bank through year one | ||
3 |
INTEREST CHARGED ON BANK LOAN | |
| Rate of interest STP pays the bank, usually based on LIBOR, Prime or Commercial Paper. | ||
4 |
SURRENDER CHARGE | |
| Amount of charges normally in the contract but waived for the A.L.P.S program. | ||
5 |
BEG. OF YEAR | |
| Indicates year; please note it is the beginning of the year. | ||
6 |
TOTAL DEATH BENEFIT | |
| Equals Death Benefit + Cash Value. | ||
7 |
ACCUM. VALUE (TRUST) | |
| Cash Value. | ||
8 |
NET DEATH BENEFIT | |
| Net Death Benefit. (Total Death Benefit (-) Net Death Benefit) | ||
9 |
SUPPLEMENTAL PAYMENT | |
| Client's annual supplemental payment assuming that all rates shown on the illustration remain constant. | ||
10 |
BAL. OF TAX COST | |
| Taxable income 1099'd by Trust to the policyowner based on the mortality cost or the the Table I cost, whichever is lower. | ||
| 11 | TAX @ 30.00% | |
| Shows that tax cost to the client, assuming a 30% tax bracket and assuming an offset of the reportable income by the amounts paid in the SUPPLEMENTAL PAYMENT Column. | ||
| 12 | Name of the Collateral item client plans on pledging for 12 years. | |
| 13 | Account number of Collateral Item being pledged. | |
| 14 | Amount of Collateral to be pledged. Equal to one Target Premium. | |
| 15 | Signature of person who is pledging collateral. | |
| 16 | Amount of guideline single premium, not including any superfunding. | |
| INSURED: SAMPLE | AGE 45 MALE PREFERRED |
| AMOUNT: $ 1,000,000 | PREMIUM: $ 621,504 | DEATH BENEFIT OPTION 2 |
| INSURED: LINCOLN BENEFIT LIFE COMPANY | POLICY: THE ULTRA ACHIEVER |
| INCOME TAX RATE OF INSURED: 30.00% |
| INTEREST RATES EARNED: $ 0 - $ 10,000 | 1 |
6.0000% Compounded Annually |
| $ 10,001 - $ 25,000 | 6.5000% Compounded Annually | |
| > $ 25,001 | 7.0000% Compounded Annually |
Bank C.D. |
2 |
4.0000% Compounded Annually |
| INTEREST CHARGED ON BANK LOAN : | 3 |
6.3000% Compounded Annually |
| SURRENDER CHARGE : | 4 |
40363 |
|
5 |
6 |
7 |
8 |
9 |
10 |
11 |
(IF BAL. TAXABLE) |
| BEG.OF YEAR | TOTAL DEATH BENEFIT | ACCUM. VALUE (TRUST) | NET DEATH BENEFIT | SUPPLE- MENTAL PAYMENT | BAL. OF TAX COST | TAX @ 30.00% |
| 1 | 1621505 | 621504 | 1000000 | 0 | 1968 | 590 |
| 2 | 1662735 | 662735 | 1000000 | 0 | 2157 | 647 |
| 3 | 1664761 | 664761 | 1000000 | 0 | 2286 | 686 |
| 4 | 1666794 | 666794 | 1000000 | 0 | 2465 | 740 |
| 5 | 1668784 | 668784 | 1000000 | 0 | 2634 | 790 |
| 6 | 1670738 | 670738 | 1000000 | 0 | 2793 | 838 |
| 7 | 1672664 | 672664 | 1000000 | 0 | 3091 | 927 |
| 8 | 1674415 | 674415 | 1000000 | 0 | 3399 | 1020 |
| 9 | 1675970 | 675970 | 1000000 | 0 | 3797 | 1139 |
| 10 | 1677220 | 677220 | 1000000 | 0 | 4204 | 1261 |
| 00000 |
| This is a supplementary illustration showing the results of the arbitrage plan under the assumptions specified above. It must be accompanied by an official policy illustration. Cash value withdrawals from the policy are at the discretion of the Trustee and may differ from those illustrated. Also, the interest rates are likely to change from time to time. Any such differences will also change the payments and net insurance amounts from those shown on page 1. |
| 00000 |
| This illustration assumes an offset of the reportable income by the amounts billed for negative arbitrage. Consult your tax advisor to discuss treatment of these amounts |
| Prepared by S.T.P ENTERPRISES | Amount of collateral needed = |
14 |
$8340 |
| (312)819-7474 | Guideline single premium = |
16 |
$207168 |
| Page 1 | January 14, 1997 |
12 |
I INTEND TO PLEDGE __________ | 13 |
ACCOUNT NUMBER _____________ |
0000 |
| 14 | AS COLLATERAL FOR THE OBLIGATION CONTAINED IN PARAGRAPH |
| 9(a) OF THE POLICYHOLDER AGREEMENT IN THE AMOUNT OF $8,340. |
| 15 | X SIGNATURE ____________ | DATE_______/_____/_______ |
|
|
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