Statement:  Year 1

Here is my statement for the end of the first policy year.

There was policy activity during the year.  I made two purchases of Paid-Up Insurance (PUA), totalling $300.  My policy's death benefit was permanently increased by $877, and it acquired $277.12 of cash value.  Because the payments were not made within one month of the policy anniversary, "late payment adjustment factors" were deducted.  In August 1996, I purchased $100 PUA, but lost $1.90.  In early April 1997, I purchased $200 PUA, but lost $5.32.  Without these losses, both my death benefit and cash value would have been higher.

The PUA cost adjustment is stated within the policy.  Still, from then to now, all my PUA purchases were made within one month of the policy anniversary.  Three percent is always lost in any such purchase (costing $9 in addition to the amounts in previous paragraph), however no more money has been lost to the late payment factor.

Note:  the cost of PUA goes up each year.  The late payment adjust factor is a mechanism NYLIC uses to prorate the cost of paid-up insurance.  The $7.22 adjustment was made almost eleven months into policy year, essentially bringing the cost to what PUA would have been at the beginning of the second year.