Leave a Comment:
2 comments
Martin,
I rec’d your email. I don’t quite agree with your analysis on this topic. And your comparison isn’t really apple-to-apple. Afterall, they are two different animals.
If you really want to compare, I think you should use TM Legacy Plus, $60k face amount (cos 26-year-old got two times MDB i.e $120k till 65), premium term of 39 years till 65 (longest term so that premium is low), and you get annual premium of $1,081.80. Post-65, the sum assured will be close to $120k with annual bonuses.
Won’t this arrangement be better if client is concerned about lifetime CI risk?
While reversionary and terminal bonuses are not guaranteed, at least TM has not cut any in the last 60 yrs.
ReplyShanne,
TM Legacy plus is very similar to a whole life bundled with a term. That will make the numbers very different.
My example here is just to show the kind of IRR you can get from a limited pay whole life plan. Like you mentioned, the features of a term and whole life plan are different.
Reply