17 |
BEG. OF YEAR |
| Indicates year; please note that it is the beginning of the year. |
18 |
POLICY SURRENDER VALUE |
| Policy surrender value at the BEGINNING of each year. |
19 |
BANK CD |
| This CD amount S.T.P. pledges to make up the shortfall in the interest due at the end of year one. |
20 |
SUPPLEMENTAL PAYMENT |
| Client's annual payment assuming that all rates shown on the illustration remain constant. |
21 |
INTEREST ON LOAN |
| The interest due on the loan each year |
22 |
NET TRUST VALUE |
| Any excess cash surrender values in the policy on the first day of that year. Excesses calculated after collateral and interest due to date will offset future negative payments due from client. |
23 |
WITHDR. FROM POLICY |
| The amount to be withdrawn from the contract each year, assuming crediting rates and borrowing rates remain constant. The withdrawal is calculated so as not to touch principal. |
| INSURED: SAMPLE | AGE 45 MALE PREFERRED |
| AMOUNT: $ 1,000,000 | PREMIUM: $ 621,504 | DEATH BENEFIT OPTION 2 |
| INSURER: LINCOLN BENEFIT LIFE COMPANY | POLICY: THE ULTRA ACHIEVER |
| INCOME TAX RATE OF INSURED: 30.00% |
| INTEREST RATES EARNED: | $ 0 - $ 10,000 |
6.0000% Compounded Annually |
$ 10,001 - $ 25,000 |
6.5000% Compounded Annually |
> $ 25,001 |
7.0000% Compounded Annually |
Bank C.D. |
4.0000% Compounded Annually |
| INTEREST CHARGED ON BANK LOAN: | 6.3000% Compounded Annually |
| SURRENDER CHARGE: | 40363 |
OPERATION OF TRUST |
17 |
18 |
19 |
20 |
21 |
22 |
23 |
BEG. OF YEAR
|
POLICY SURR. VALUE |
BANK C.D. |
SUPPL. PAYMENT |
INTEREST ON LOAN |
NET TRUST VALUE |
WITHDR. FROM POLICY |
1 |
621504 |
0 |
0 |
0 |
0 |
0 |
2 |
662735 |
0 |
0 |
-39155 |
2076 |
39155 |
3 |
664761 |
0 |
0 |
-39155 |
4102 |
39155 |
4 |
666794 |
0 |
0 |
-39155 |
6135 |
39155 |
5 |
668784 |
0 |
0 |
-39155 |
8125 |
39155 |
| 6 | 670738 | 0 |
0 | -39155 | 10079 | 39155 |
| 7 | 672664 | 0 |
0 | -39155 | 12005 | 39155 |
| 8 | 674415 | 0 |
0 | -39155 | 13756 | 39155 |
| 9 | 675970 | 0 |
0 | -39155 | 15310 | 39155 |
| 10 | 677220 | 0 |
0 | -39155 | 16561 | 39155 |
| 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. |
| 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 = |
$8340 |
| Chicago, IL | Guideline single premium = |
$207168 |
| Page 3 | January 14, 1997 |
|
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