The PURE Comparison

Pure Life Insurance Risk Management

Policy Under Required Expectations

Policy Under Required Expectations 

The PURE Comparison is a tool used to assess a life insurance policy in its purest and most guaranteed form; measuring the internal rate of return (IRR) of premiums for a guaranteed life insurance policy. 

“Scientifically it has been proven that we are all going to die someday. 

It is not a matter of if. It is a matter of when.” 

Is there a chance that your life insurance policy will end before you do? 

While we appreciate the benefits of cash values, dividends, and many other useful features of life insurance policies, our clients are looking for maximum efficiency of premiums on a guaranteed level. 

The PURE Comparison is a tool to reduce the analysis to one straightforward benefit; 

Guaranteed IRR at my death for my beneficiaries, 

whenever that is. 

Let The PURE Comparison help you put an end to your uncertainty. 

Death Benefit IRR is the rate of return of a life insurance policy, displayed annually, comparing the cumulative premiums against the death benefit obtained in a hypothetical future year. Depending on the premium paying strategy, DB IRR usually declines throughout the life of the policy. This measurement tool is most useful in evaluating the ultimate performance of a life insurance policy’s death benefit in comparison to other product designs or investment strategies. 

Or put another way, IRR measures the interest rate at which the net present value of the total premiums paid equals the net present value of the death benefit. 

According to The Oxford Dictionary, Life Expectancy is the number of years that a person is likely to live. 

Stated another way, “A life expectancy is a statistical calculation that indicates the average length of life left until death that is expected for an individual with a known mortality risk profile. The most important factors in defining an 

individual’s mortality risk profile are demographics (age, sex and race), personal and medical history.” 

The Social Security Administration defines the period life expectancy at a given age is the average remaining number of years expected prior to death for a 

person at that exact age. Unfortunately, the Social Security life expectancy tables are woefully inaccurate, as they do not take into account longevity factors such as family history, medical conditions, smoking status, etc. 

The Life Insurance Nerds life expectancy calculator uses proprietary information that more accurately represents actual carrier experience and true life expectancy. 

Clients and Advisors seek to complete The PURE Comparison when they need 

certainty with their life insurance policies. They insist on a death benefit that will be paid for a guaranteed period of time, whether that time is limited or for the client’s entire lifetime. 

Clients and Advisors who prefer term insurance will appreciate The PURE Comparison focus on the guaranteed objectives of the client. It will also serve to alert clients of other important considerations, such as future convertibility timelines and options. 

Clients and Advisors who are considering guaranteed life insurance death benefits that last as long as the client does, will appreciate The Pure Comparison. This tool focuses on the efficiency of premiums, relative to lifetime guaranteed death benefits. 

Clients and Purchasers of Life Insurance Policies 

Trustees 

Financial Advisors 

Legal Counsel 

Businesses and Business Owners 

RIA’s (Registered Investment Advisor) 

Private Family Offices 

Tax and Accounting Counsel 

Banks and Trust Officers

(Mr. Wynn Surely, Male, 10/01/48 (age 71), Preferred NonTobacco) 

Desired Strategy

Current Policy

(United of Omaha) BUxxxxx987 

Optimal Alternative

Face Amount: 

$4,000,000$4,000,000

Required Guaranteed Age: 

Age 71 Age 100***NERD ALERT!

Guaranteed Premium: 

$178,247/Year$113,959/Year

Premium Duration: 

(Life Expectancy = Age 89)

Age 100All Years***NERD ALERT!

Guaranteed IRR at LE:

N/A Lapse5.09%

Guaranteed Taxable Equivalent: 

N/A Lapse7.96%

*This policy may be guaranteed beyond Age 100. While the premiums are higher, the potential of you outliving your policy is lower. 

**Life Insurance premiums must be paid in All Years. Many clients and trusted advisors desire to limit the premium paying period to further insure that the policy will not lapse due to missed premium payments at a later date. We always welcome additional analysis of a shorter guaranteed premium duration, such as 7-10 Years. 

  1. Complete the information inputs found here and click “View Quotes” 
  2. In 48 hours, we will provide to you the following: 
    1. Complete carrier illustration, including Internal Rates of Return (IRR)
    2. A Life Expectancy Estimate
    3. The PURE Solution Report
    4. Next Steps 

How to Request the PURE Comparison

Health Status: *NERD ALERT

Check one of the four boxes:

Exceptional Health, lowest rates. This category is a tough one to get into. It’s generally for those at a normal weight for their height, who have normal blood pressure/cholesterol readings, and have a clean medical history. Usually you can’t have a history of premature death in your family related to heart disease or cancer. Your driving record counts too.

Excellent Health, 2nd-best rates. This category is similar to the Preferred Plus, but allows a bit more elbow room on things like blood pressure, cholesterol, and weight. Perfect health not needed here.

Above-Average Health. You’ll fit in here if you’re generally healthy, but don’t quite meet the Preferred requirements.

Average Health. Not the lowest, but usually still good rates. This category is for those working on their weight, being treated for high blood pressure or cholesterol, or those with a history of premature death from heart disease or cancer in their family.

*Health Status is individually determined by life insurance carriers. Life Insurance Nerds seek to confidentially and accurately assess your health status by reviewing medical history, avocation, travel and occupational history with carriers. Please see Health Status Questionnaires as they relate to your specific issues.

Life Insurance Policy Information Request

I, the policy owner, request the following information regarding my life insurance policy(s) listed above.

Request for Current Policy Information

Request for service forms:

I hereby authorize you to release any information on the above captioned policy with your company, to Life Insurance Nerds. A photocopy or faxed copy of this authorization shall be as valid as the original. Thank you for your attention to this request.

Sincerely,

I AUTHORIZE YOU TO FORWARD THIS INFORMATION TO:

Send to Life Insurance Nerds at:
2155 Butterfield, Suite 102
Troy, MI 48084
Fax: 248-603-3595
Email: info@lifeinsurancenerds.com

Life Insurance Policy In-force Illustration Request

I, the policy owner, request the following information regarding my life insurance policy(s) listed above.

Inforce Illustration Request

Please specify your request:

I hereby authorize you to release any information on the above captioned policy with your company, to Life Insurance Nerds. A photocopy or faxed copy of this authorization shall be as valid as the original. Thank you for your attention to this request.

Sincerely,

I AUTHORIZE YOU TO FORWARD THIS INFORMATION TO:

Send to Life Insurance Nerds at:
2155 Butterfield, Suite 102
Troy, MI 48084
Fax: 248-603-3595
Email: info@lifeinsurancenerds.com

100 YEARS OF COMBINED EXPERIENCE!