20 Year Historical Sample

AXA-Equitable

Insured                                             M50 NSP

Index                                                 S&P 500

CAP (2/12)                                      11%

Minimum Guaranty                           0% 

Premiums                                        $12,000 YR

Surrender Charge                               20 Years

Accelerated Death Benefit        75% to $500,000 max.

Policy                                             $217,000 Option B

Loan                                                 Fixed Only

Target                                                 $4,993

 

                         Credited              Policy             Account             NET
                            Gain*                 Costs               Value              IRR

1992                   7.43%              1783              10,976         – 8.53%
1993                   9.57%              1886              23,108         – 2.50%
1994                   0.21%              2018              33,160         – 4.05%
1995                 11.00%              2046              47,856         – 0.12%
1996                 11.00%              2095              64,115            2.22%
1997                 11.00%              2165              82,085            3.76%
1998                 10.09%              2277            101,071            4.63%
1999                 11.00%              2395            122,851            5.46%
2000                   6.99%              2504             141,598           5.37%
2001                   0.00%              2623             150,975           4.14%

2002                   0.00%              2336             160,639           3.24%
2003                   5.50%              2449             179,550           3.35%
2004                 10.50%              2533             208,864           4.09%
2005                   5.63%              2604             230,548           4.13%
2006                   9.00%              2683             261,453           4.54%
2007                   8.81%              2812             294,484           4.87%
2008                   0.00%              2920             303,564           4.27%
2009                   2.75%              3020             321,139           4.03%
2010                 10.24%              3107             363,827           4.48%
2011                   5.50%              3193             393,129            4.49% Cumulative

         Total 20 Year Costs         49,449

*  Premiums go into the policy  typically 12 months per year, not on just December 31st.  So the Credited Gain is an Average of 4 Annual Gains each year for a more “true” picture of the gain over the entire year: March-March, June-June, Sept.-Sept and Dec.-Dec.

[I have the only “calculators” in the industry that can do this analysis for any combination of Cap, Participation Rate and Minimum Guaranty for any company]. 
 

 

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