You can calculate your return in two ways: as an overall return or as an annual percentage rate (APR). You won’t know your APR until the policy matures. That’s why we focus on showing clients their estimated overall return. Before we market a policy, we typically set the overall return based on the insured’s expected number of months to live.
Suppose an 80-year-old male has a life expectancy of 5 years or 60 months. We estimate an overall return of 60%. If you invest $10,000 in this policy, you would receive $16,000* when the policy matures. Once that happens, you can calculate your exact APR. The sooner the policy matures, the higher your APR. The longer it takes, the lower the APR.
Example of Life Expentancy Return
*Life expectancy is only an estimate. No one can guarantee when the insured will pass away. Some or all policies may go past the expected timeframe, which can lower your overall return.