Suggestions

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Whole Life Insurance Modeling for Investment, Retirement, Tax, and Estate Planning

Having the ability to model my policies I use following the “Be Your Own Banker” approach would be a game changer for me. I am leveraging my policies as collateral for loans to secure my investments and tracking the interest for tax deductions. I also plan to use these policies as a source to reduce my taxable income during retirement. Being able to simulate some of the variables here would be very beneficial.

8 votes

Tagged as Suggestion

Suggested 15 April 2023 by user Seth

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  • 15 April 2023 Seth suggested this task

  • 15 April 2023 Kyle Nolan approved this task

  • avatar
    Paul McHale

    Agree!!

    06 March 2024
  • avatar
    Michael DeCristofaro

    This would be extremely helpful!

    06 February
  • avatar
    Mike Bendtsen

    Yes Please!!! Whole Life plans have 1) premium 2) death benefit 3) cash value

    The cash value is an asset (like the equity of a home), which can be borrowed against (so loan repayment modeling) or can just have $ drawn down from (tax free). In most cases, the cash value disappears after end-of-life with none being left to any benefactors (that is what the death benefit is for). So model would have to show cash value gone ($0) at end-of-life.

    The premium, cash value, & death benefit all have their own schedule of growth over time, so each of these components would need the ADVANCED (actual dollars) function to model out what premium/cash/benefit is at any given age.

    Currently, I can model the premium as an expense (with advanced change-over-time for costs), model the death benefit as a one-time income event (though I can’t model out death benefit growth, so just taking value from schedule for the guesstimated end-of-life payout), but I trying to model out the growing cash value seems to be pushing the limits.

    Best way I can think at moment is an income event showing yearly growth that funds a savings account (0% interest). I can’t figure out how to drain/close that account at end-of-life.

    Oh…would like model using the Whole Life Cash Value to fund my LTC Insurance premiums.

    So yes please on this ability :)

    14 May