Your numbers
Upload the two illustrations, then adjust the assumptions. Everything below updates as you change them.
Managed account
Taxes and estate
Term policy and timing
Advisor settings
VUL illustration ledger
Columns: Year, Age, Premium, Withdrawal/Loan income, Net cash surrender value, Death benefit. Paste from Excel or edit directly; tabs, commas or spaces all work.
Term premium schedule
Columns: Age, Annual premium. Leave empty to use the level premium above until the level period ends.
The comparison
Cash value
What your family receives
Side by side at key ages
Year by year
How this is calculated
- Same money out of pocket. Each year the client pays the VUL premium. On the other path that same amount pays the term premium and the rest goes into the managed account (reduced by the share actually invested).
- Same return. The managed account's gross return is set to the rate the VUL illustration uses. It then loses the fees, the behavior gap and the yearly tax on dividends, interest and realized gains. Taxed income is reinvested and added to cost basis.
- Cash value on the VUL side is the net cash surrender value from the illustration: after surrender charges and any outstanding loans.
- Legacy on the term path = term face amount while coverage is in force, plus the account balance (heirs receive a stepped-up basis, so no income tax). With estate tax included, insurance owned by an ILIT passes outside the estate; the managed account is taxed at the rate shown.
- IRR treats every premium as money invested at the start of the year and the cash value or legacy as the payoff at the end of the year shown. Both paths cost the same, so the higher IRR is the more efficient use of each dollar.
- Break-even is the gross return, before fees, the managed account would need to leave heirs the same amount as the VUL at the comparison age.
Important disclosures
For internal use by financial professionals only. Not for public distribution.
This is a hypothetical comparison for discussion purposes. It is not an illustration under the NAIC Life Insurance Illustrations Model Regulation and does not replace the carrier's illustration, which must be reviewed in full, including guaranteed values. Values shown for the variable universal life policy come from the carrier illustration at the hypothetical gross rate of return shown; they are not guaranteed and actual results will be more or less. The managed account projection uses a level hypothetical return; actual returns vary from year to year, and losses are possible on both paths.
Variable universal life insurance is sold by prospectus. Investors should consider the investment objectives, risks, charges and expenses of the policy and its investment options carefully before investing; the prospectus contains this and other information and should be read carefully. Policy values in the investment divisions fluctuate with market conditions and, when surrendered, may be worth more or less than the premiums paid. Loans and withdrawals reduce the policy's cash value and death benefit, may cause the policy to lapse, and may result in a tax liability if the policy lapses or is surrendered. Policy loans are generally income-tax-free only while the policy remains in force and is not a modified endowment contract. Life insurance requires medical and financial underwriting.
Term insurance provides coverage only for the stated term; premiums typically increase substantially after the level premium period and coverage may end. The term path assumes the client qualifies for the coverage shown.
Tax and estate calculations are simplified and based on current law, which may change. Neither the advisor nor New York Life or its affiliates provide tax, legal or accounting advice; clients should consult their own tax and legal professionals. Estate tax results assume the estate exceeds the applicable exemption and, where selected, that the policy is properly owned by an irrevocable trust outside the estate. The investor behavior gap reflects published industry research and is not a prediction for any individual.
Registered Representative offering securities through NYLIFE Securities LLC (member FINRA/SIPC), a licensed insurance agency and a New York Life company. Financial Adviser offering investment advisory services through Eagle Strategies LLC, a registered investment adviser. Oxus Wealth Strategies, LLC is not owned or operated by NYLIFE Securities LLC or its affiliates.