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PDX vs. Whole Life





Tony Neiswander
Case Design Specialist

I will be continuing the trend this month and adding another to our series of articles focused on the new Pacific Discovery Xelerator IUL. I wanted to take the time to show you how this IUL can be an incredible alternative to a whole life product.

For the purpose of this article I am using numbers derived from an Ameritas Whole Life product. They tend to be one of the carriers that have a good mix of low premium and solid cash building efficiency. Below is a table that shows the premium as well as the projected cash value in years 10, 20, and 30:

Ameritas
Age Premium CV 10yr CV20yr CV 30yr
30 2,556 21,012 57,488 110,156
35 3,177 26,411 70,381 131,595
40 3,870 32,710 84,470 152,294
45 4,767 40,509 100,055 176,066
50 5,853 49,206 117,438 319,133
55 7,251 59,103 136,468 229,206
60 9,066 69,600 159,267 267,562
65 11,481 83,997 187,811 316,728
70 15,519 101,693 199,743 341,703
As you can see these numbers are pretty affordable and the cash grows to some very nice cash values in time. Now let’s take a look at the same table for the Pacific Life PDX:
Pacific Life
Age Premium CV 10yr CV20yr CV 30yr
30 2,397 21,759 75,084 170,176
35 2,849 25,988 89,429 201,055
40 3,444 31,423 107,999 243,434
45 4,189 38,036 131,602 308,439
50 5,179 47,639 161,415 389,486
55 6,476 60,086 198,176 506,240
60 8,137 72,080 237,165 629,640
65 10,296 82,896 288,412 830,853
70 13,090 73,887 295,060 1,077,894

Comparing these two tables, you can see that the premium is considerably lower in every single scenario. The client would save around 10% in premium each year versus the whole life. The whole life performs only slightly better in the first 10 years, but after that the Pacific Life runs away with it. By the 20th year the cash values are significantly better, and by the 30th year there is not even a comparison. The best part is that this policy would also be fully guaranteed for life, similar to the whole life policy.

The IUL structured this way will not only have the same protections and cost much less, it will provide the client the ability to grow much more cash and potentially create an income for their retirement years or when an emergency may strike. Let us show you how this can work for your client today.

TONY NEISWANDER, MBA  |  CASE DESIGN SPECIALIST   636.695.2842  TNEISWANDER@FIRSTHEARTLAND.COM

 

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