#life-insurance
3 articles
Moving a $1M Life Insurance Policy Into an ILIT Saves $400,000 in Estate Tax
We ran a $1,000,000 policy through the calculator at a 40% combined marginal estate tax rate — an ILIT saves $400,000, against roughly $24,750 in setup and 25 years of administration cost.
$300/Year Term vs $3,000/Year Whole Life: BTID Wins by $54K Over 20 Years at 7%
We ran a healthy 35-year-old's $500K term ($300/yr) against a comparable whole life policy ($3,000/yr) through the calculator — investing the $2,700/yr difference at 7% clears typical whole life cash value by over $54,000 in 20 years.
Family of 4, $85K Income, $300K Mortgage: DIME Says $1.14M Coverage (Term Costs $50/mo)
DIME framework: Debts $315K + Income replacement $1.275M + Mortgage already counted + Education $200K = $1.79M needed. Subtract existing $650K (savings + spouse income capacity) = $1.14M coverage gap. 20-year term: $40-60/month.