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Insured Annuity Table - Male
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Amount of Capital: |
$ 250,000.00 |
5-Year GIC - Annual Income Analysis |
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Marginal Tax Rate: |
43.41% |
Capital Invested in GIC: |
$ 250,000.00 |
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5-Year GIC Rate*: |
3.85% |
Gross Annual Interest Income: |
$ 9,625.00 |
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Tax Payable: |
$ 4,178.21 |
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After Tax Income of GIC |
$ 5,446.79 |
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The Insured Life Annuity
acts the same way as a long term interest vehicle such as a GIC - you
receive monthly or annual income and upon death, the capital is passed
to your heirs.. The difference is that you will relinquish the use of
the capital for life in exchange for a substantially higher after tax
lifetime income - much the same as you would with a pension. To
preserve capital in the estate, a life insurance policy is purchased to
replace the capital upon death. By doing so, this strategy (assuming
you are insurable) will still be at a substantial advantage over a GIC. |
|
Male - Age |
Gross Annual Annuity Income (as per age)* |
Taxable Portion of Annuity |
Annual Tax Payable |
UL-Term-100 or Term 100 Life Insurance Premium* |
After Tax Income of Insured Annuity |
Annual $$ Advantage over GIC |
Before Tax Equivalent Return |
|
55 |
$ 15,752.28 |
$ 5,630.82 |
$ 2,444.34 |
$ 3,918.36 |
$ 9,389.58 |
$ 3,942.79 |
6.64% |
|
56 |
$ 16,075.56 |
$ 5,616.51 |
$ 2,438.13 |
$ 4,163.28 |
$ 9,474.15 |
$ 4,027.37 |
6.70% |
|
57 |
$ 16,426.56 |
$ 5,604.05 |
$ 2,432.72 |
$ 4,469.40 |
$ 9,524.44 |
$ 4,077.65 |
6.73% |
|
58 |
$ 16,803.96 |
$ 5,643.25 |
$ 2,449.73 |
$ 4,775.52 |
$ 9,578.71 |
$ 4,131.92 |
6.77% |
|
59 |
$ 17,211.12 |
$ 5,637.05 |
$ 2,447.04 |
$ 5,112.24 |
$ 9,651.84 |
$ 4,205.05 |
6.82% |
|
60 |
$ 17,650.80 |
$ 5,631.57 |
$ 2,444.66 |
$ 5,479.56 |
$ 9,726.58 |
$ 4,279.79 |
6.88% |
|
61 |
$ 18,125.76 |
$ 5,687.95 |
$ 2,469.14 |
$ 5,877.60 |
$ 9,779.02 |
$ 4,332.23 |
6.91% |
|
62 |
$ 18,639.00 |
$ 5,685.63 |
$ 2,468.13 |
$ 6,306.12 |
$ 9,864.75 |
$ 4,417.96 |
6.97% |
|
63 |
$ 19,193.76 |
$ 5,752.90 |
$ 2,497.33 |
$ 6,765.36 |
$ 9,931.07 |
$ 4,484.28 |
7.02% |
|
64 |
$ 19,793.76 |
$ 5,827.28 |
$ 2,529.62 |
$ 7,255.08 |
$ 10,009.06 |
$ 4,562.27 |
7.07% |
|
65 |
$ 20,442.84 |
$ 5,907.96 |
$ 2,564.65 |
$ 7,806.12 |
$ 10,072.07 |
$ 4,625.29 |
7.12% |
|
66 |
$ 21,078.96 |
$ 5,927.44 |
$ 2,573.10 |
$ 8,295.96 |
$ 10,209.90 |
$ 4,763.11 |
7.22% |
|
67 |
$ 21,757.92 |
$ 5,935.14 |
$ 2,576.44 |
$ 8,877.60 |
$ 10,303.88 |
$ 4,857.09 |
7.28% |
|
68 |
$ 22,481.28 |
$ 5,924.99 |
$ 2,572.04 |
$ 9,459.24 |
$ 10,450.00 |
$ 5,003.21 |
7.39% |
|
69 |
$ 23,250.48 |
$ 5,889.37 |
$ 2,556.58 |
$ 10,071.48 |
$ 10,622.42 |
$ 5,175.64 |
7.51% |
|
70 |
$ 24,066.60 |
$ 5,950.66 |
$ 2,583.18 |
$ 10,775.52 |
$ 10,707.90 |
$ 5,261.11 |
7.57% |
|
71 |
$ 24,929.64 |
$ 5,845.67 |
$ 2,537.61 |
$ 11,442.00 |
$ 10,950.03 |
$ 5,503.25 |
7.74% |
|
72 |
$ 25,838.76 |
$ 5,838.76 |
$ 2,534.61 |
$ 12,102.00 |
$ 11,202.15 |
$ 5,755.37 |
7.92% |
|
73 |
$ 26,791.92 |
$ 5,783.52 |
$ 2,510.63 |
$ 12,852.00 |
$ 11,429.29 |
$ 5,982.51 |
8.08% |
|
74 |
$ 27,784.80 |
$ 5,660.91 |
$ 2,457.40 |
$ 13,752.00 |
$ 11,575.40 |
$ 6,128.61 |
8.18% |
|
75 |
$ 28,810.68 |
$ 5,446.19 |
$ 2,364.19 |
$ 14,836.56 |
$ 11,609.93 |
$ 6,163.14 |
8.21% |
|
76 |
$ 28,499.16 |
$ 3,624.71 |
$ 1,573.49 |
$ 15,911.16 |
$ 11,014.51 |
$ 5,567.73 |
7.79% |
|
77 |
$ 29,741.52 |
$ 3,415.35 |
$ 1,482.60 |
$ 16,580.76 |
$ 11,678.16 |
$ 6,231.37 |
8.25% |
|
78 |
$ 31,074.48 |
$ 3,170.50 |
$ 1,376.31 |
$ 17,390.76 |
$ 12,307.41 |
$ 6,860.62 |
8.70% |
|
79 |
$ 32,503.20 |
$ 2,882.56 |
$ 1,251.32 |
$ 18,584.16 |
$ 12,667.72 |
$ 7,220.93 |
8.95% |
|
80 |
$ 34,032.00 |
$ 2,541.51 |
$ 1,103.27 |
$ 20,409.36 |
$ 12,519.37 |
$ 7,072.58 |
8.85% |
|
81 |
$ 35,664.24 |
$ 2,133.73 |
$ 926.25 |
$ 22,863.60 |
$ 11,874.39 |
$ 6,427.60 |
8.39% |
|
82 |
$ 37,401.00 |
$ 1,637.48 |
$ 710.83 |
$ 25,782.36 |
$ 10,907.81 |
$ 5,461.02 |
7.71% |
|
83 |
$ 39,241.56 |
$ 1,020.97 |
$ 443.20 |
$ 29,168.16 |
$ 9,630.20 |
$ 4,183.41 |
6.81% |
|
84 |
$ 41,184.60 |
$ 243.18 |
$ 105.56 |
$ 33,021.00 |
$ 8,058.04 |
$ 2,611.25 |
5.70% |
|
85 |
$ 43,230.12 |
$ - |
$ - |
$ 37,338.36 |
$ 5,891.76 |
$ 444.97 |
4.16% |
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The Insured Life Annuity
is suited for those who would like to increase their after-tax income
and guaranteed it for life and are concerned with preserving capital in
their estate. The person must be in good health in order to acquire
life insurance and sub-standard life insurance rates may have adverse
effects on the after tax income. Be sure to review your options with
your professional advisors before entering into
The Insured Life Annuity. |
* Quotes are as of July 4, 2005 and are subject to
change without notice. Life annuity with 1 year guarantee payment period. |
