Calculator Inputs
Example Data Table
This example shows one reasonable planning scenario. You can load it directly into the calculator using the example button above.
| Input | Example Value |
|---|---|
| Current Age | 35 |
| Projection End Age | 80 |
| Annual Premium | $2,500.00 |
| Premium Paying Years | 20 |
| Starting Cash Value | $0.00 |
| Guaranteed Growth Rate | 3.50% |
| Dividend Credit Rate | 1.20% |
| Annual Policy Fee | $90.00 |
| Expense Drag Rate | 1.10% |
| Annual Rider Cost | $40.00 |
| Surrender Charge Rate | 8.00% |
| Surrender Charge Years | 10 |
| Current Policy Loan | $1,000.00 |
| Loan Interest Rate | 5.00% |
Formula Used
This calculator uses a simplified annual projection model for whole life cash value. It is helpful for planning, comparison, and sensitivity analysis.
1. Base before charges
Base = Opening Cash Value + Premium Paid
2. Total annual charges
Charges = (Base × Expense Drag Rate) + Policy Fee + Rider Cost
3. Net base after charges
Net Base = Base − Charges
4. Guaranteed growth
Guaranteed Interest = Net Base × Guaranteed Rate
5. Dividend credit
Dividend Credit = (Net Base + Guaranteed Interest) × Dividend Rate
6. Closing cash value
Cash Value = Net Base + Guaranteed Interest + Dividend Credit
7. Loan growth
Loan Balance = Prior Loan Balance × (1 + Loan Interest Rate)
8. Net surrender value
Net Surrender Value = Cash Value − Surrender Charge − Loan Balance
Actual carrier illustrations may use different charge patterns, dividend methods, loan treatment, and guaranteed factors. This tool is an estimate, not an insurer quote.
How to Use This Calculator
- Enter your current age and projection end age.
- Set the annual premium and years you will pay.
- Enter current cash value if the policy already exists.
- Add guaranteed growth, dividend rate, and annual charges.
- Include surrender charge settings and any policy loan balance.
- Press calculate to see cash value, surrender value, and yearly trends.
- Review the chart and projection table for long term changes.
- Export the schedule as CSV or PDF for records.
FAQs
1. What does this calculator estimate?
It estimates projected whole life cash value, surrender value, yearly charges, dividend credits, and loan impact using a simplified annual growth model.
2. Is this the same as an insurer illustration?
No. Real policy illustrations depend on carrier rules, dividend scales, contract charges, loan terms, and policy design details not fully modeled here.
3. Why is surrender value lower than cash value?
Surrender value can be reduced by surrender charges and policy loans. Those deductions lower the amount available if the policy is canceled.
4. What does the dividend rate represent?
It represents an assumed extra annual credit above the guaranteed rate. It is only a scenario input, not a promised return.
5. Why include expense drag and policy fees?
These inputs reflect costs that slow cash value growth. Higher charges reduce the net amount left to compound each year.
6. How is the break-even point calculated?
Break-even occurs when projected cash value first equals or exceeds the total premiums paid into the policy.
7. Can I use this for an existing policy?
Yes. Enter the current cash value, current loan balance, and your future assumptions to estimate how the policy may progress.
8. When should I export the report?
Export after adjusting assumptions you want to compare. The files help save scenarios for review, planning meetings, or client discussions.