| BUSINESSWEEK ONLINE : AUGUST 30, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR
Anatomy of a Life Insurance Implosion UNIVERSAL LIFE POLICY: Bought by a 41-year-old man in 1984 DEATH BENEFIT: $1 million INTEREST RATES AT TIME OF PURCHASE: 12% ANNUAL PREMIUM: $4,720 Now, the holder is told his policy will lapse when he's 68--not at age 95, as originally projected--because it is earning only 6% interest. THE POLICYHOLDER'S OPTIONS: -- Boost annual premiums to $14,184. -- Cut the death benefit to $401,000. -- Let the policy lapse at age 68. DATA: LOW LOAD INSURANCE SERVICES INC. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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RELATED ITEMS Life Insurance: So You Think You're Covered TABLE: Anatomy of a Life Insurance Implosion INTERACT E-Mail to Business Week Online | |||
