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Discovery Analyzer Report
Ownership Insured Carrier Policy Number Type of Policy
A. Case Sample Irrevocable Trust Beth Sampson Genworth 444555666777 Universal Life
Prepared By:G. Tate Groome, CFP®, CLU®
LifeTrust3D1127B Hendersonville Rd
Asheville NC [email protected]:844.747.5833F:844.568.293006/28/2016
Disclosure
We believe the sources to be reliable, however, the accuracy and completeness of the information is not guaranteed. Inthe event of any discrepancy, the carrier's information shall prevail. Performance data represents past performance anddoes not guarantee future results. The values represented in this report may not reflect the true original cost of theclient's initial investment. Calculations and data provided should not be relied upon for tax purposes, use originalconfirmations and carrier statements instead. The Information contained in these reports is collected from sourcesbelieved to be reliable, however the accuracy and completeness of the information is not guaranteed. Always rely onstatements you receive directly from the carriers, whose valuation shall prevail in the event of any discrepancy. If youhave any questions regarding your report, please call your representative.
TABLE OF CONTENTS
1. Policy Summary
2. Performance Guidelines
3. Policy Information
4. Original Structure
5. Current Structure
6. Performance Analysis
7. Product Analysis
8. Life Expectancy Analysis
9. Carrier Analysis
10. Executive Analysis
11. Policy Objectives
12. Policy Design
13. Product Comparison Analysis
14. Recommendations
15. Resources Used in This Analysis
POLICY SUMMARY
Insured Carrier Policy Number Type of Policy
Beth Sampson Genworth 444555666777 Universal Life
The Discovery Analyzer Report has been created specifically for the Trustee to better understand the strengths andweaknesses of this life insurance policy based upon the stated goals, objectives, risk tolerance and financialsituation disclosed in The Discovery Analyzer.
The goal of this report is to provide a goalsbased, objective and quantifiable performance analysis of the existingpolicy.
The preparer of this report, LifeTrust3D provides feebased, independent life insurance policy management andmonitoring services. LifeTrust3D utilizes its trademarked, 3D Process(TM), industry leading TOLI Vault technologyand team of expert insurance advisors that have been keeping life insurance promises to policyholders for more thansix decades and delivering bestinclass life insurance policy management.
POLICY MONITORING GUIDELINES
Guideline Desired Acceptable Range Unacceptable
Lapse Age 100 99 96 95DeathBenefit $2,000,000.00 $1,999,999.99
Premium $11,533.00 $11,533.01Policy
Performance 6.00% 5.99% 4.51% 4.50%
CarrierPerformance 90 89 80 79
Policy TypeUniversal Life
CarrierGenworth
Policy #444555666777
LAPSE AGE Age at which coverage may no longer be in force 87DEATH BENEFIT The amount of coverage in force $2,000,000.00
PREMIUMS The amount and frequency of policy funding $11,533.00POLICY PERFORMANCE Earnings rate of the policy 4.00%CARRIER PERFORMANCE Financial strength and rating of the insurance company 53
Color Key:The performance is as desired guideline parameters are being metThe performance is on track desired guideline parameters are within the acceptable rangeThe performance is lagging desired guideline parameters are unacceptable
POLICY MONITORING SPECIFICATIONS
Insured Lapse Age Death Benefit Premium Policy Performance Carrier Performance
Beth Sampson
POLICY INFORMATIONPolicy Type UniversalLifeProduct Name Universal LifeInsurance Carrier GenworthSTAR Ranking 1Comdex Rating 53Policy Number 444555666777Policy Issue Date 04/28/2000Policy Anniversary Date 04/28Owner A. Case Sample Irrevocable TrustTrustee Sample Trust CompanyBeneficiary John Sampson
ORIGINAL STRUCTURECoverage Length Requirement 100Original Premium $11,533.00Was this policy issued with 1035 exchange money NoWas this policy issue with a first year unscheduled premium NoOriginal Death Benefit $2,000,000.00Guaranteed Credited Interest Rate 4.00%Original Projected Interest Rate 7.00%Guaranteed Lapse Age 78
CURRENT STRUCTUREFinal Illustrated Premium Year 2033Current Premium $11,533.00Projected Annualized Premiums Remaining 17Total Current Cash Value $160,780.00Current Cash Surrender Value $129,862.00Cost Basis $149,929.00Total Current Death Benefit $2,000,000.00Current Credited Interest Rate 4.00%Projected Lapse Age 87Is this Policy a MEC NoIs this Policy Collaterally Assigned NoIs this Policy part of a Split Dollar Arrangement NoIs the Premium for this Policy Premium Financed No
PERFORMANCE ANALYSIS
Policy Number 444555666777Carrier GenworthCarrier Comdex 53Policy Type Universal LifeProduct Name Universal LifeLapse Age 87Probability of Surviving to Lapse Age 81.67%Owner A. Case Sample Irrevocable TrustInsured Beth SampsonDeath Benefit $2,000,000.00Premium $11,533.00Cash Value $160,780.00Cash Surrender Value $129,862.00Interest Crediting 4.00%
PERFORMANCE TRACKING
Death BenefitYear Projected Actual
2016 $2,000,000 $2,000,0002015 $2,000,000 $2,000,0002014 $2,000,000 $2,000,000
PremiumProjected Actual
$11,533 $11,533$11,533 $11,533$11,533 $11,533
Lapse AgeProjected Actual
100 87100 87100 87
Cash ValueYear Projected Actual
2016 $164,554 $160,7802015 $156,487 $155,1082014 $148,771 $148,771
Surrender ValueProjected Actual
$133,651 $129,862$120,419 $119,963$107,809 $107,809
Credit RateProjected Actual
7.00 4.007.00 4.007.00 4.00
Color Key:The performance is on track guideline parameters are being metThe performance is inadequate review is recommendedData is incomplete information is needed
PRODUCT ANALYSIS
Product Type: Universal Life
Lowest Premium Lowest Premium PaymentsPolicy Flexibility Ability to alter premium or death benefit
Coverage Duration Guarantees Guaranteed Length of CoveragePremium Guarantees Guaranteed Premium PaymentsCash Accumulation Building Substantial Cash Value within the Policy
Color Key:The Product Type has the desired featuresThe Product Type can produce the desired featuresThe Product Type does not have the desired features
Universal Life InsuranceAdvantages Disadvantages
•Lower projected premium •Client at risk for having to pay a higher premium
•Significant premium flexibility •Few guaranteed; almost everything is subject tocarrier discretion
•Adjustable death benefit •Carrier can change cost of insurance, credited rateand expense charges
•Unbundled product structure where pricingcomponents are disclosed •Carrier controls investment direction
•Cash values subject to claims of insurancecompany creditors
LIFE EXPECTANCY ANALYSIS
Client Data CLIENT(1)
Insured Beth SampsonSex FSmoker NPolicy Rating Classification Preferred PlusCurrent Age 75Life Expectancy (YEARS) 21.46
Policy # 444555666777
Policy Lapse AgeGuaranteed Basis 78Probability of Survival at this age 97.20%
Policy # 444555666777
Policy Lapse AgeProjected Basis 87Probability of Survival at this age 81.67%All values are derived from the 2008 VBT Mortality Table
CARRIER ANALYSIS
EXECUTIVE ANALYSIS
PERFORMANCE TRACKING
Death BenefitYear Projected Actual
2016 $2,000,000 $2,000,0002015 $2,000,000 $2,000,0002014 $2,000,000 $2,000,000
PremiumProjected Actual
$11,533 $11,533$11,533 $11,533$11,533 $11,533
Lapse AgeProjected Actual
100 87100 87100 87
Cash ValueYear Projected Actual
2016 $164,554 $160,7802015 $156,487 $155,1082014 $148,771 $148,771
Surrender ValueProjected Actual
$133,651 $129,862$120,419 $119,963$107,809 $107,809
Credit RateProjected Actual
7.00 4.007.00 4.007.00 4.00
Color Key:The performance is on track guideline parameters are being metThe performance is inadequate review is recommendedData is incomplete information is needed
POLICY MONITORING GUIDELINES
Guideline Desired Acceptable Range Unacceptable
Lapse Age 100 99 96 95DeathBenefit $2,000,000.00 $1,999,999.99
Premium $11,533.00 $11,533.01Policy
Performance 6.00% 5.99% 4.51% 4.50%
CarrierPerformance 90 89 80 79
Policy TypeUniversal Life
CarrierGenworth
Policy #444555666777
LAPSE AGE Age at which coverage may no longer be in force 87DEATH BENEFIT The amount of coverage in force $2,000,000.00
PREMIUMS The amount and frequency of policy funding $11,533.00POLICY PERFORMANCE Earnings rate of the policy 4.00%CARRIER PERFORMANCE Financial strength and rating of the insurance company 53
Color Key:The performance is as desired guideline parameters are being metThe performance is on track desired guideline parameters are within the acceptable rangeThe performance is lagging desired guideline parameters are unacceptablePolicy meets some objectives
PRODUCT ANALYSIS
Product Type: Universal Life
Lowest Premium Lowest Premium PaymentsPolicy Flexibility Ability to alter premium or death benefit
Coverage Duration Guarantees Guaranteed Length of CoveragePremium Guarantees Guaranteed Premium PaymentsCash Accumulation Building Substantial Cash Value within the Policy
Color Key:The Product Type has the desired featuresThe Product Type can produce the desired featuresThe Product Type does not have the desired features
Universal Life InsuranceAdvantages Disadvantages
•Lower projected premium •Client at risk for having to pay a higher premium
•Significant premium flexibility •Few guaranteed; almost everything is subject tocarrier discretion
•Adjustable death benefit •Carrier can change cost of insurance, creditedrate and expense charges
•Unbundled product structure where pricingcomponents are disclosed •Carrier controls investment direction
•Cash values subject to claims of insurancecompany creditors
Policy meets some design parameters
PRODUCT COMPARISON ANALYSIS
Universal LifeLIfeTrust3D
Beth Sampson10/30/1941
Preferred Plus132 Anywhere St.Charlotte, NC
Committed Annual Premium $11,533.001035 Exchange $107,809.00
Premium Payments To Age 100Coverage Needed To Age 100No Lapse Protection To Age 100
Diversification Through A Variable Life (Separate Account) Insurance ProductAcceptable Comdex Rating Range 80100
Death Benefit ComparisonCarrier Amount A.M. Best S & P Moody's Fitch Comdex
Minnesota LifeEclipse Protector IUL $902,456.00 A+ A+ Aa3 AA 92
Genworth Current UL Policy, Reduce DB $900,000.00 B++ BB w Baa2 BB+ 53
Protective Custom Choice UL $888,333.00 A+ AA A 88
Nationwide YourLife NoLapse GUL $881,945.00 A+ A+ A1 89
Prudential Universal Protector $878,000.00 A+ AA A1 A+ 90
PrincipalUL Protector IV $873,456.00 A+ A+ A1 AA 90
TransamericaTransACE $872,888.00 A+ AA A1 AA 92
RECOMMENDATIONS
Analyst Observations: Assuming the current illustrated rate of 4% and at the current funding level of $11,533annually, this policy is projected to remain in force through insured's age 87. However, it is guaranteed only toage 79. Carrier financial strength nor the lapse age meet the desired performance guidelines. Analystrequested and provided an alternative illustration to increase the projected longevity for consideration:
Increase premium to $37,225.00 annually to keep the current $2,000,000 death benefit in force tothe insured's age 100.
In addition, the Analyst has included a Market Survey illustrating comparable options that may be available ifa 1035 exchange is considered. This survey is for discussion purposes only.
*Please see illustrations for details
RESOURCES USED IN THIS ANALYSIS
In reviewing your insurance policy's performance and carrier strength, the following resources were used:
The TOLI Vault™ policy monitoring and management software
Vital Signs key financial reports and ratings from major rating agencies AM Best, Moody's, Fitch, and Standardsand Poor's
Life Expectancy Analysis utilizing the 2008 VBT Mortality Table
Insurance Carrier's inforce illustrations and recent statements. These are stored in the TOLI Vault which can beaccessed by the Trustee
