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Policy type

Premium

Premium

(paid monthly)

(paid annually)

10-year Term

$22.08 $247.50

216

Table 11.1

Male, age 25

CHAPTER 11

Premium Comparisons1 (Death Benefit—$450,000)

Female, age 25

10-year Term

Male, age 25

VUL

$19.70

$220.00

$178.73

$2,144.75

Female, age 25

VUL

$132.75

$1,593.00

1Although there is no age difference between the male and female examples, there are dif- ferences in the amount of premiums the two will pay. This is because women have longer life expectancies than men do. The column marked “Premium (paid annually)” is if the insured chooses to pay the premium on an annual basis. For the term policies the annual outlay of money is more if the premium is paid on a monthly basis, but for the VUL policies, the amount stays the same. If paying the premium on a monthly basis, the male would spend $264.96 per year and the woman would pay $236.40 annually. If any of the variables used in the above illustration were to change (i.e., age, death benefit, smoking status), the premium amounts would vary.

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