High Value in a Value Proposition
No other investment vehicle offers the array of client and advisor benefits than AAVUL.
EMBRACE IT:
Value Like No Other
“AAVUL’s tax saving profit means federal and state governments actually pay (i.e. more money in the pocket with the policy than without) each HNW, high-income policyowner to also have a death benefit worth millions of dollars. No other wealth planning or investment tool provides this benefit package.”
AAVUL for Tax Alpha
A one-step solution producing client profits plus advisor’s increased AUM.
Learn about AAVUL’s capabilities and its one-step tax management solution in our e-book.
HIGHLY EFFICIENT:
Growth & Death Benefit
Aside from a state-imposed, one-time premium tax (ranging from 8 to 350 basis points), 99.5 cents of each dollar goes directly to your client’s benefit.
99.5 cents of each AAVUL dollar invested has a direct client benefit.
-
Investment Planning Impact: 98.5 cents (98.5%) is directly invested into the tax-free portfolio
-
Wealth Impact: 1 cent (1%) pays for the valuable death benefit
Only ½ of 1 cent (0.50%) goes to the insurance company for providing the AAVUL structure.
CALCULATE IT:
Projected Tax Savings to Portfolio Return
Q. What’s the blended federal and state tax rate and portfolio return combination needed to produce a desired AAVUL profit: policy tax savings > policy costs?
A. Use the Tax Shield Benefit (TSB) calculator
Tax Shield Benefit (TSB) Calculator
Inputs
[ $0 is breakeven: policy expenses = tax profit ]
Results
| This requires an integration of: | |
|---|---|
| Blended Federal/State Tax Rate | Rate of Return |
| 15% | 10.00% |
| 20% | 7.50% |
| 25% | 6.00% |
| 30% | 5.00% |
| 35% | 4.29% |
| 40% | 3.75% |
| 45% | 3.33% |
| 50% | 3.00% |
| 55% | 2.73% |
| 60% | 2.50% |
Interpretation A HNW client in the 35% blended tax bracket needs to achieve a AAVUL portfolio return of 4.29% to earn a tax profit of $0.00 for each dollar paid in policy expenses (at 1.5% policy costs to portfolio value).
Details
| Rate of Return | Gross Portofolio Value | Gross Profit | Total Taxes | After-Tax Profit | Total Policy Expenses | After-Policy-Expenses Profit | AAVUL Profit Net of Policy Expenses | Tax Shield Ratio(TSR) | Tax Savings to Total Taxes Paid | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10.00% | $1,100,000 | $100,000 | $15,000 | $85,000 | $15,000 | $85,000 | $0.00 | 1.00 | $0.00 | |
| 7.50% | $1,075,000 | $75,000 | $15,000 | $60,000 | $15,000 | $60,000 | $0.00 | |||
| 6.00% | $1,060,000 | $60,000 | $15,000 | $45,000 | $15,000 | $45,000 | $0.00 | |||
| 5.00% | $1,050,000 | $50,000 | $15,000 | $35,000 | $15,000 | $35,000 | $0.00 | |||
| 4.29% | $1,042,857 | $42,857 | $15,000 | $27,857 | $15,000 | $27,857 | $0.00 | |||
| 3.75% | $1,037,500 | $37,500 | $15,000 | $22,500 | $15,000 | $22,500 | $0.00 | |||
| 3.33% | $1,033,333 | $33,333 | $15,000 | $18,333 | $15,000 | $18,333 | $0.00 | |||
| 3.00% | $1,030,000 | $30,000 | $15,000 | $15,000 | $15,000 | $15,000 | $0.00 | |||
| 2.73% | $1,027,273 | $27,273 | $15,000 | $12,273 | $15,000 | $12,273 | $0.00 | |||
| 2.50% | $1,025,000 | $25,000 | $15,000 | $10,000 | $15,000 | $10,000 | $0.00 |
Q. When does an AAVUL portfolio’s integration of policy costs, blended tax rate, and return turn from a tax shield loss to a profit?
A. Use the Tax Shield Ratio (TSR) calculator
Tax Shield Ratio (TSR) Calculator
Inputs
Results
| Blended Federal and State Tax Rate | Pre-Tax Rate of Return | Blended Federal and State Tax Rate | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 13% | 14% | 15% | 16% | 17% | 18% | 19% | 20% | ||
| 15% | 0.15 | 0.30 | 0.45 | 0.60 | 0.75 | 0.90 | 1.05 | 1.20 | 1.35 | 1.50 | 1.65 | 1.80 | 1.95 | 2.10 | 2.25 | 2.40 | 2.55 | 2.70 | 2.85 | 3.00 | 15% |
| 16% | 0.16 | 0.32 | 0.48 | 0.64 | 0.80 | 0.96 | 1.12 | 1.28 | 1.44 | 1.60 | 1.76 | 1.92 | 2.08 | 2.24 | 2.40 | 2.56 | 2.72 | 2.88 | 3.04 | 3.20 | 16% |
| 17% | 0.17 | 0.34 | 0.51 | 0.68 | 0.85 | 1.02 | 1.19 | 1.36 | 1.53 | 1.70 | 1.87 | 2.04 | 2.21 | 2.38 | 2.55 | 2.72 | 2.89 | 3.06 | 3.23 | 3.40 | 17% |
| 18% | 0.18 | 0.36 | 0.54 | 0.72 | 0.90 | 1.08 | 1.26 | 1.44 | 1.62 | 1.80 | 1.98 | 2.16 | 2.34 | 2.52 | 2.70 | 2.88 | 3.06 | 3.24 | 3.42 | 3.60 | 18% |
| 19% | 0.19 | 0.38 | 0.57 | 0.76 | 0.95 | 1.14 | 1.33 | 1.52 | 1.71 | 1.90 | 2.09 | 2.28 | 2.47 | 2.66 | 2.85 | 3.04 | 3.23 | 3.42 | 3.61 | 3.80 | 19% |
| 20% | 0.20 | 0.40 | 0.60 | 0.80 | 1.00 | 1.20 | 1.40 | 1.60 | 1.80 | 2.00 | 2.20 | 2.40 | 2.60 | 2.80 | 3.00 | 3.20 | 3.40 | 3.60 | 3.80 | 4.00 | 20% |
| 21% | 0.21 | 0.42 | 0.63 | 0.84 | 1.05 | 1.26 | 1.47 | 1.68 | 1.89 | 2.10 | 2.31 | 2.52 | 2.73 | 2.94 | 3.15 | 3.36 | 3.57 | 3.78 | 3.99 | 4.20 | 21% |
| 22% | 0.22 | 0.44 | 0.66 | 0.88 | 1.10 | 1.32 | 1.54 | 1.76 | 1.98 | 2.20 | 2.42 | 2.64 | 2.86 | 3.08 | 3.30 | 3.52 | 3.74 | 3.96 | 4.18 | 4.40 | 22% |
| 23% | 0.23 | 0.46 | 0.69 | 0.92 | 1.15 | 1.38 | 1.61 | 1.84 | 2.07 | 2.30 | 2.53 | 2.76 | 2.99 | 3.22 | 3.45 | 3.68 | 3.91 | 4.14 | 4.37 | 4.60 | 23% |
| 24% | 0.24 | 0.48 | 0.72 | 0.96 | 1.20 | 1.44 | 1.68 | 1.92 | 2.16 | 2.40 | 2.64 | 2.88 | 3.12 | 3.36 | 3.60 | 3.84 | 4.08 | 4.32 | 4.56 | 4.80 | 24% |
| 25% | 0.25 | 0.50 | 0.75 | 1.00 | 1.25 | 1.50 | 1.75 | 2.00 | 2.25 | 2.50 | 2.75 | 3.00 | 3.25 | 3.50 | 3.75 | 4.00 | 4.25 | 4.50 | 4.75 | 5.00 | 25% |
| 26% | 0.26 | 0.52 | 0.78 | 1.04 | 1.30 | 1.56 | 1.82 | 2.08 | 2.34 | 2.60 | 2.86 | 3.12 | 3.38 | 3.64 | 3.90 | 4.16 | 4.42 | 4.68 | 4.94 | 5.20 | 26% |
| 27% | 0.27 | 0.54 | 0.81 | 1.08 | 1.35 | 1.62 | 1.89 | 2.16 | 2.43 | 2.70 | 2.97 | 3.24 | 3.51 | 3.78 | 4.05 | 4.32 | 4.59 | 4.86 | 5.13 | 5.40 | 27% |
| 28% | 0.28 | 0.56 | 0.84 | 1.12 | 1.40 | 1.68 | 1.96 | 2.24 | 2.52 | 2.80 | 3.08 | 3.36 | 3.64 | 3.92 | 4.20 | 4.48 | 4.76 | 5.04 | 5.32 | 5.60 | 28% |
| 29% | 0.29 | 0.58 | 0.87 | 1.16 | 1.45 | 1.74 | 2.03 | 2.32 | 2.61 | 2.90 | 3.19 | 3.48 | 3.77 | 4.06 | 4.35 | 4.64 | 4.93 | 5.22 | 5.51 | 5.80 | 29% |
| 30% | 0.30 | 0.60 | 0.90 | 1.20 | 1.50 | 1.80 | 2.10 | 2.40 | 2.70 | 3.00 | 3.30 | 3.60 | 3.90 | 4.20 | 4.50 | 4.80 | 5.10 | 5.40 | 5.70 | 6.00 | 30% |
| 31% | 0.31 | 0.62 | 0.93 | 1.24 | 1.55 | 1.86 | 2.17 | 2.48 | 2.79 | 3.10 | 3.41 | 3.72 | 4.03 | 4.34 | 4.65 | 4.96 | 5.27 | 5.58 | 5.89 | 6.20 | 31% |
| 32% | 0.32 | 0.64 | 0.96 | 1.28 | 1.60 | 1.92 | 2.24 | 2.56 | 2.88 | 3.20 | 3.52 | 3.84 | 4.16 | 4.48 | 4.80 | 5.12 | 5.44 | 5.76 | 6.08 | 6.40 | 32% |
| 33% | 0.33 | 0.66 | 0.99 | 1.32 | 1.65 | 1.98 | 2.31 | 2.64 | 2.97 | 3.30 | 3.63 | 3.96 | 4.29 | 4.62 | 4.95 | 5.28 | 5.61 | 5.94 | 6.27 | 6.60 | 33% |
| 34% | 0.34 | 0.68 | 1.02 | 1.36 | 1.70 | 2.04 | 2.38 | 2.72 | 3.06 | 3.40 | 3.74 | 4.08 | 4.42 | 4.76 | 5.10 | 5.44 | 5.78 | 6.12 | 6.46 | 6.80 | 34% |
| 35% | 0.35 | 0.70 | 1.05 | 1.40 | 1.75 | 2.10 | 2.45 | 2.80 | 3.15 | 3.50 | 3.85 | 4.20 | 4.55 | 4.90 | 5.25 | 5.60 | 5.95 | 6.30 | 6.65 | 7.00 | 35% |
| 36% | 0.36 | 0.72 | 1.08 | 1.44 | 1.80 | 2.16 | 2.52 | 2.88 | 3.24 | 3.60 | 3.96 | 4.32 | 4.68 | 5.04 | 5.40 | 5.76 | 6.12 | 6.48 | 6.84 | 7.20 | 36% |
| 37% | 0.37 | 0.74 | 1.11 | 1.48 | 1.85 | 2.22 | 2.59 | 2.96 | 3.33 | 3.70 | 4.07 | 4.44 | 4.81 | 5.18 | 5.55 | 5.92 | 6.29 | 6.66 | 7.03 | 7.40 | 37% |
| 38% | 0.38 | 0.76 | 1.14 | 1.52 | 1.90 | 2.28 | 2.66 | 3.04 | 3.42 | 3.80 | 4.18 | 4.56 | 4.94 | 5.32 | 5.70 | 6.08 | 6.46 | 6.84 | 7.22 | 7.60 | 38% |
| 39% | 0.39 | 0.78 | 1.17 | 1.56 | 1.95 | 2.34 | 2.73 | 3.12 | 3.51 | 3.90 | 4.29 | 4.68 | 5.07 | 5.46 | 5.85 | 6.24 | 6.63 | 7.02 | 7.41 | 7.80 | 39% |
| 40% | 0.40 | 0.80 | 1.20 | 1.60 | 2.00 | 2.40 | 2.80 | 3.20 | 3.60 | 4.00 | 4.40 | 4.80 | 5.20 | 5.60 | 6.00 | 6.40 | 6.80 | 7.20 | 7.60 | 8.00 | 40% |
| 41% | 0.41 | 0.82 | 1.23 | 1.64 | 2.05 | 2.46 | 2.87 | 3.28 | 3.69 | 4.10 | 4.51 | 4.92 | 5.33 | 5.74 | 6.15 | 6.56 | 6.97 | 7.38 | 7.79 | 8.20 | 41% |
| 42% | 0.42 | 0.84 | 1.26 | 1.68 | 2.10 | 2.52 | 2.94 | 3.36 | 3.78 | 4.20 | 4.62 | 5.04 | 5.46 | 5.88 | 6.30 | 6.72 | 7.14 | 7.56 | 7.98 | 8.40 | 42% |
| 43% | 0.43 | 0.86 | 1.29 | 1.72 | 2.15 | 2.58 | 3.01 | 3.44 | 3.87 | 4.30 | 4.73 | 5.16 | 5.59 | 6.02 | 6.45 | 6.88 | 7.31 | 7.74 | 8.17 | 8.60 | 43% |
| 44% | 0.44 | 0.88 | 1.32 | 1.76 | 2.20 | 2.64 | 3.08 | 3.52 | 3.96 | 4.40 | 4.84 | 5.28 | 5.72 | 6.16 | 6.60 | 7.04 | 7.48 | 7.92 | 8.36 | 8.80 | 44% |
| 45% | 0.45 | 0.90 | 1.35 | 1.80 | 2.25 | 2.70 | 3.15 | 3.60 | 4.05 | 4.50 | 4.95 | 5.40 | 5.85 | 6.30 | 6.75 | 7.20 | 7.65 | 8.10 | 8.55 | 9.00 | 45% |
| 46% | 0.46 | 0.92 | 1.38 | 1.84 | 2.30 | 2.76 | 3.22 | 3.68 | 4.14 | 4.60 | 5.06 | 5.52 | 5.98 | 6.44 | 6.90 | 7.36 | 7.82 | 8.28 | 8.74 | 9.20 | 46% |
| 47% | 0.47 | 0.94 | 1.41 | 1.88 | 2.35 | 2.82 | 3.29 | 3.76 | 4.23 | 4.70 | 5.17 | 5.64 | 6.11 | 6.58 | 7.05 | 7.52 | 7.99 | 8.46 | 8.93 | 9.40 | 47% |
| 48% | 0.48 | 0.96 | 1.44 | 1.92 | 2.40 | 2.88 | 3.36 | 3.84 | 4.32 | 4.80 | 5.28 | 5.76 | 6.24 | 6.72 | 7.20 | 7.68 | 8.16 | 8.64 | 9.12 | 9.60 | 48% |
| 49% | 0.49 | 0.98 | 1.47 | 1.96 | 2.45 | 2.94 | 3.43 | 3.92 | 4.41 | 4.90 | 5.39 | 5.88 | 6.37 | 6.86 | 7.35 | 7.84 | 8.33 | 8.82 | 9.31 | 9.80 | 49% |
| 50% | 0.50 | 1.00 | 1.50 | 2.00 | 2.50 | 3.00 | 3.50 | 4.00 | 4.50 | 5.00 | 5.50 | 6.00 | 6.50 | 7.00 | 7.50 | 8.00 | 8.50 | 9.00 | 9.50 | 10.00 | 50% |
| 51% | 0.51 | 1.02 | 1.53 | 2.04 | 2.55 | 3.06 | 3.57 | 4.08 | 4.59 | 5.10 | 5.61 | 6.12 | 6.63 | 7.14 | 7.65 | 8.16 | 8.67 | 9.18 | 9.69 | 10.20 | 51% |
| 52% | 0.52 | 1.04 | 1.56 | 2.08 | 2.60 | 3.12 | 3.64 | 4.16 | 4.68 | 5.20 | 5.72 | 6.24 | 6.76 | 7.28 | 7.80 | 8.32 | 8.84 | 9.36 | 9.88 | 10.40 | 52% |
| 53% | 0.53 | 1.06 | 1.59 | 2.12 | 2.65 | 3.18 | 3.71 | 4.24 | 4.77 | 5.30 | 5.83 | 6.36 | 6.89 | 7.42 | 7.95 | 8.48 | 9.01 | 9.54 | 10.07 | 10.60 | 53% |
| 54% | 0.54 | 1.08 | 1.62 | 2.16 | 2.70 | 3.24 | 3.78 | 4.32 | 4.86 | 5.40 | 5.94 | 6.48 | 7.02 | 7.56 | 8.10 | 8.64 | 9.18 | 9.72 | 10.26 | 10.80 | 54% |
| 55% | 0.55 | 1.10 | 1.65 | 2.20 | 2.75 | 3.30 | 3.85 | 4.40 | 4.95 | 5.50 | 6.05 | 6.60 | 7.15 | 7.70 | 8.25 | 8.80 | 9.35 | 9.90 | 10.45 | 11.00 | 55% |
| 56% | 0.56 | 1.12 | 1.68 | 2.24 | 2.80 | 3.36 | 3.92 | 4.48 | 5.04 | 5.60 | 6.16 | 6.72 | 7.28 | 7.84 | 8.40 | 8.96 | 9.52 | 10.08 | 10.64 | 11.20 | 56% |
| 57% | 0.57 | 1.14 | 1.71 | 2.28 | 2.85 | 3.42 | 3.99 | 4.56 | 5.13 | 5.70 | 6.27 | 6.84 | 7.41 | 7.98 | 8.55 | 9.12 | 9.69 | 10.26 | 10.83 | 11.40 | 57% |
| 58% | 0.58 | 1.16 | 1.74 | 2.32 | 2.90 | 3.48 | 4.06 | 4.64 | 5.22 | 5.80 | 6.38 | 6.96 | 7.54 | 8.12 | 8.70 | 9.28 | 9.86 | 10.44 | 11.02 | 11.60 | 58% |
| 59% | 0.59 | 1.18 | 1.77 | 2.36 | 2.95 | 3.54 | 4.13 | 4.72 | 5.31 | 5.90 | 6.49 | 7.08 | 7.67 | 8.26 | 8.85 | 9.44 | 10.03 | 10.62 | 11.21 | 11.80 | 59% |
| 60% | 0.60 | 1.20 | 1.80 | 2.40 | 3.00 | 3.60 | 4.20 | 4.80 | 5.40 | 6.00 | 6.60 | 7.20 | 7.80 | 8.40 | 9.00 | 9.60 | 10.20 | 10.80 | 11.40 | 12.00 | 60% |
| 61% | 0.61 | 1.22 | 1.83 | 2.44 | 3.05 | 3.66 | 4.27 | 4.88 | 5.49 | 6.10 | 6.71 | 7.32 | 7.93 | 8.54 | 9.15 | 9.76 | 10.37 | 10.98 | 11.59 | 12.20 | 61% |
| 62% | 0.62 | 1.24 | 1.86 | 2.48 | 3.10 | 3.72 | 4.34 | 4.96 | 5.58 | 6.20 | 6.82 | 7.44 | 8.06 | 8.68 | 9.30 | 9.92 | 10.54 | 11.16 | 11.78 | 12.40 | 62% |
| 63% | 0.63 | 1.26 | 1.89 | 2.52 | 3.15 | 3.78 | 4.41 | 5.04 | 5.67 | 6.30 | 6.93 | 7.56 | 8.19 | 8.82 | 9.45 | 10.08 | 10.71 | 11.34 | 11.97 | 12.60 | 63% |
| 64% | 0.64 | 1.28 | 1.92 | 2.56 | 3.20 | 3.84 | 4.48 | 5.12 | 5.76 | 6.40 | 7.04 | 7.68 | 8.32 | 8.96 | 9.60 | 10.24 | 10.88 | 11.52 | 12.16 | 12.80 | 64% |
| 65% | 0.65 | 1.30 | 1.95 | 2.60 | 3.25 | 3.90 | 4.55 | 5.20 | 5.85 | 6.50 | 7.15 | 7.80 | 8.45 | 9.10 | 9.75 | 10.40 | 11.05 | 11.70 | 12.35 | 13.00 | 65% |
| 66% | 0.66 | 1.32 | 1.98 | 2.64 | 3.30 | 3.96 | 4.62 | 5.28 | 5.94 | 6.60 | 7.26 | 7.92 | 8.58 | 9.24 | 9.90 | 10.56 | 11.22 | 11.88 | 12.54 | 13.20 | 66% |
| 67% | 0.67 | 1.34 | 2.01 | 2.68 | 3.35 | 4.02 | 4.69 | 5.36 | 6.03 | 6.70 | 7.37 | 8.04 | 8.71 | 9.38 | 10.05 | 10.72 | 11.39 | 12.06 | 12.73 | 13.40 | 67% |
| 68% | 0.68 | 1.36 | 2.04 | 2.72 | 3.40 | 4.08 | 4.76 | 5.44 | 6.12 | 6.80 | 7.48 | 8.16 | 8.84 | 9.52 | 10.20 | 10.88 | 11.56 | 12.24 | 12.92 | 13.60 | 68% |
| 69% | 0.69 | 1.38 | 2.07 | 2.76 | 3.45 | 4.14 | 4.83 | 5.52 | 6.21 | 6.90 | 7.59 | 8.28 | 8.97 | 9.66 | 10.35 | 11.04 | 11.73 | 12.42 | 13.11 | 13.80 | 69% |
| 70% | 0.70 | 1.40 | 2.10 | 2.80 | 3.50 | 4.20 | 4.90 | 5.60 | 6.30 | 7.00 | 7.70 | 8.40 | 9.10 | 9.80 | 10.50 | 11.20 | 11.90 | 12.60 | 13.30 | 14.00 | 70% |
Ratios in the red-shaded area: policy expenses > tax shield (policyowner loss)
Ratios in the green-shaded area: Tax shield > policy expenses (policyowner profit)
A ratio of 1.0 means the tax shield = policy expenses (breakeven)
Ratios in the green-shaded area: Tax shield > policy expenses (policyowner profit)
A ratio of 1.0 means the tax shield = policy expenses (breakeven)
Taxable Portfolio Cash Flow
Q. How does a taxable portfolio’s cash flows compare to a similar portfolio inside an AAVUL policy?
A. Use the AAVUL Cash Flow calculator.
AAVUL Cash Flow Calculator
Inputs
Results
| Gross Return of Tax Inefficient Investments | Taxable Portfolio Analysis | AAVUL Portfolio as the Asset Location Resource | AAVUL Portfolio Tax Alpha Benefit | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Yr. | Age | Non-MEC, Multi-Pay Premium Schedule | Net of Invest-ment Fee Return | Taxable Portfolio Cash Value Gross Return | After-Tax Return | Tax Rate on Portfolio Income | Tax Amount | Taxable Portfolio Cash Value After Taxes | Premium Taxes | Insurance Charges | Cumulative Annual Policy Fees | AAVUL Portfolio Cash Value After Policy Fees | AAVUL Net Cash Value Advantage Over Taxable | Additional After-Tax Return to Taxable Cash Value | Death Benefit |
| 1 | 45 | $250,000 | 3.00% | $257,500 | 1.50% | 1.50% | $3,750 | $253,750 | $0 | $3,750 | $3,750 | $253,750 | $0 | 0.00% | |
| 2 | 46 | $250,000 | 3.00% | $522,725 | 1.50% | 1.50% | $7,556 | $511,306 | $0 | $7,556 | $7,556 | $511,306 | $0 | 0.00% | |
| 3 | 47 | $250,000 | 3.00% | $795,907 | 1.50% | 1.50% | $11,420 | $772,726 | $0 | $11,420 | $11,420 | $772,726 | $0 | 0.00% | |
| 4 | 48 | $250,000 | 3.00% | $1,077,284 | 1.50% | 1.50% | $15,341 | $1,038,067 | $0 | $15,341 | $15,341 | $1,038,067 | $0 | 0.00% | |
| 5 | 49 | $0 | 3.00% | $1,109,602 | 1.50% | 1.50% | $15,571 | $1,053,638 | $0 | $15,571 | $15,571 | $1,053,638 | $0 | 0.00% | |
| 6 | 50 | $0 | 3.00% | $1,142,891 | 1.50% | 1.50% | $15,805 | $1,069,442 | $0 | $15,805 | $15,805 | $1,069,442 | $0 | 0.00% | |
| 7 | 51 | $0 | 3.00% | $1,177,177 | 1.50% | 1.50% | $16,042 | $1,085,484 | $0 | $16,042 | $16,042 | $1,085,484 | $0 | 0.00% | |
| 8 | 52 | $0 | 3.00% | $1,212,493 | 1.50% | 1.50% | $16,282 | $1,101,766 | $0 | $16,282 | $16,282 | $1,101,766 | $0 | 0.00% | |
| 9 | 53 | $0 | 3.00% | $1,248,867 | 1.50% | 1.50% | $16,526 | $1,118,293 | $0 | $16,526 | $16,526 | $1,118,293 | $0 | 0.00% | |
| 10 | 54 | $0 | 3.00% | $1,286,333 | 1.50% | 1.50% | $16,774 | $1,135,067 | $0 | $16,774 | $16,774 | $1,135,067 | $0 | 0.00% | |
| 11 | 55 | $0 | 3.00% | $1,324,923 | 1.50% | 1.50% | $17,026 | $1,152,093 | $0 | $17,026 | $17,026 | $1,152,093 | $0 | 0.00% | Death Benefit Determined Using Age and Health Underwriting Factors |
| 12 | 56 | $0 | 3.00% | $1,364,671 | 1.50% | 1.50% | $17,281 | $1,169,374 | $0 | $17,281 | $17,281 | $1,169,374 | $0 | 0.00% | |
| 13 | 57 | $0 | 3.00% | $1,405,611 | 1.50% | 1.50% | $17,541 | $1,186,915 | $0 | $17,541 | $17,541 | $1,186,915 | $0 | 0.00% | |
| 14 | 58 | $0 | 3.00% | $1,447,780 | 1.50% | 1.50% | $17,804 | $1,204,719 | $0 | $17,804 | $17,804 | $1,204,719 | $0 | 0.00% | |
| 15 | 59 | $0 | 3.00% | $1,491,213 | 1.50% | 1.50% | $18,071 | $1,222,790 | $0 | $18,071 | $18,071 | $1,222,790 | $0 | 0.00% | |
| 16 | 60 | $0 | 3.00% | $1,535,949 | 1.50% | 1.50% | $18,342 | $1,241,131 | $0 | $18,342 | $18,342 | $1,241,131 | $0 | 0.00% | |
| 17 | 61 | $0 | 3.00% | $1,582,028 | 1.50% | 1.50% | $18,617 | $1,259,748 | $0 | $18,617 | $18,617 | $1,259,748 | $0 | 0.00% | |
| 18 | 62 | $0 | 3.00% | $1,629,489 | 1.50% | 1.50% | $18,896 | $1,278,645 | $0 | $18,896 | $18,896 | $1,278,645 | $0 | 0.00% | |
| 19 | 63 | $0 | 3.00% | $1,678,373 | 1.50% | 1.50% | $19,180 | $1,297,824 | $0 | $19,180 | $19,180 | $1,297,824 | $0 | 0.00% | |
| 20 | 64 | $0 | 3.00% | $1,728,724 | 1.50% | 1.50% | $19,467 | $1,317,292 | $0 | $19,467 | $19,467 | $1,317,292 | $0 | 0.00% | |
| 21 | 65 | $0 | 3.00% | $1,780,586 | 1.50% | 1.50% | $19,759 | $1,337,051 | $0 | $19,759 | $19,759 | $1,337,051 | $0 | 0.00% | |
| 22 | 66 | $0 | 3.00% | $1,834,004 | 1.50% | 1.50% | $20,056 | $1,357,107 | $0 | $20,056 | $20,056 | $1,357,107 | $0 | 0.00% | |
| 23 | 67 | $0 | 3.00% | $1,889,024 | 1.50% | 1.50% | $20,357 | $1,377,463 | $0 | $20,357 | $20,357 | $1,377,463 | $0 | 0.00% | |
| 24 | 68 | $0 | 3.00% | $1,945,695 | 1.50% | 1.50% | $20,662 | $1,398,125 | $0 | $20,662 | $20,662 | $1,398,125 | $0 | 0.00% | |
| 25 | 69 | $0 | 3.00% | $2,004,065 | 1.50% | 1.50% | $20,972 | $1,419,097 | $0 | $20,972 | $20,972 | $1,419,097 | $0 | 0.00% | |
| 26 | 70 | $0 | 3.00% | $2,064,187 | 1.50% | 1.50% | $21,286 | $1,440,384 | $0 | $21,286 | $21,286 | $1,440,384 | $0 | 0.00% | |
| 27 | 71 | $0 | 3.00% | $2,126,113 | 1.50% | 1.50% | $21,606 | $1,461,989 | $0 | $21,606 | $21,606 | $1,461,989 | $0 | 0.00% | |
| 28 | 72 | $0 | 3.00% | $2,189,896 | 1.50% | 1.50% | $21,930 | $1,483,919 | $0 | $21,930 | $21,930 | $1,483,919 | $0 | 0.00% | |
| 29 | 73 | $0 | 3.00% | $2,255,593 | 1.50% | 1.50% | $22,259 | $1,506,178 | $0 | $22,259 | $22,259 | $1,506,178 | $0 | 0.00% | |
| 30 | 74 | $0 | 3.00% | $2,323,261 | 1.50% | 1.50% | $22,593 | $1,528,771 | $0 | $22,593 | $22,593 | $1,528,771 | $0 | 0.00% | |
| 31 | 75 | $0 | 3.00% | $2,392,959 | 1.50% | 1.50% | $22,932 | $1,551,702 | $0 | $22,932 | $22,932 | $1,551,702 | $0 | 0.00% | |
| 32 | 76 | $0 | 3.00% | $2,464,748 | 1.50% | 1.50% | $23,276 | $1,574,978 | $0 | $23,276 | $23,276 | $1,574,978 | $0 | 0.00% | |
| 33 | 77 | $0 | 3.00% | $2,538,690 | 1.50% | 1.50% | $23,625 | $1,598,603 | $0 | $23,625 | $23,625 | $1,598,603 | $0 | 0.00% | |
| 34 | 78 | $0 | 3.00% | $2,614,851 | 1.50% | 1.50% | $23,979 | $1,622,582 | $0 | $23,979 | $23,979 | $1,622,582 | $0 | 0.00% | |
| 35 | 79 | $0 | 3.00% | $2,693,296 | 1.50% | 1.50% | $24,339 | $1,646,920 | $0 | $24,339 | $24,339 | $1,646,920 | $0 | 0.00% | |
| 36 | 80 | $0 | 3.00% | $2,774,095 | 1.50% | 1.50% | $24,704 | $1,671,624 | $0 | $24,704 | $24,704 | $1,671,624 | $0 | 0.00% | |
| 37 | 81 | $0 | 3.00% | $2,857,318 | 1.50% | 1.50% | $25,074 | $1,696,698 | $0 | $25,074 | $25,074 | $1,696,698 | $0 | 0.00% | |
| 38 | 82 | $0 | 3.00% | $2,943,038 | 1.50% | 1.50% | $25,450 | $1,722,149 | $0 | $25,450 | $25,450 | $1,722,149 | $0 | 0.00% | |
| 39 | 83 | $0 | 3.00% | $3,031,329 | 1.50% | 1.50% | $25,832 | $1,747,981 | $0 | $25,832 | $25,832 | $1,747,981 | $0 | 0.00% | |
| 40 | 84 | $0 | 3.00% | $3,122,269 | 1.50% | 1.50% | $26,220 | $1,774,201 | $0 | $26,220 | $26,220 | $1,774,201 | $0 | 0.00% | |
KNOW IT:
Peerless Benefit Package; What’s Not to Like?
Advisor Led
You are the builder, manager, and monitor of the AAVUL portfolio and keep the AUM
Inflation Protection
The death benefit’s purchasing power is inflation protected since the benefit amount is a function of the AAVUL portfolio’s value
Open Architecture
Use any of your advisory firm’s preferred investments
Compounding Client ROI
Your high-income, HNW clients using AAVUL can expect profits (i.e. tax savings > policy expenses) that accelerate over time from compounding of the net tax savings
Valuable Death Benefit
The tax-free death benefit adds a highly valuable planning tool for asset protection, wealth transfers, wealth replacement, and charitable giving
Portfolio Integration
The portfolio is an integrated, tax-free portfolio companion to each HNW client’s other investment portfolios, and it remains under your wealth planning oversight
DO IT:
Key Planning Recommendation
Tax-deferred portfolios such as IRAs, annuities, and deferred compensation only offer tax alpha benefits if the income tax rate in retirement is lower than during the working years; what is called the tax-bracket arbitrage.
For HNW, high-income clients in which retirement income tax rates will remain high, AAVUL is a superior investment solution.
PLANNING TACTIC
Counter to common convention, it’s a much better strategy for clients with substantial cash flow during the working years to pay taxes in the current tax year and secure increased future wealth.
TIPS
1) Execute a one-time conversion from traditional IRAs to Roth (what is known as a back-door conversion)
2) Invest additional annual post-tax wealth aggressively into AAVUL (no contribution limits)
RESULTS
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Gain full tax-free treatment for the portfolio
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Eliminate required distributions (and higher retirement tax bills)
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Provide flexible, tax-free retirement income to support a variety of wealth planning needs (if needed)
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Uncomplicate beneficiary designations
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Use AAVUL’s death benefit for wealth transfers, wealth replacement, and charitable giving