The Visible Policy
Statement for Policy Year 1

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Statement:  Year 1

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

Unofficial Reproduction of Annual Statement
      NEW
YORK
LIFE

     
The Company You Keep
New York Life Insurance Company 
Annual Policy Summary 
Policy Number:  ## ### ### 
Page 2 of  2 
 

Insured: RICHARD W FRANZEN
Date Prepared: May 12, 1997


Life Insurance Death Benefit
as of May 10, 1997

  
Policy Cash Value
as of May 10, 1997

Base Plan Death Benefit $100,000.00
Base Plan Guaranteed Cash Value
$0.00
Death Benefit of Optional Paid up Life
  Insurance Rider (OPP)
877.00
Cash Value of Optional Paid up Life
  Insurance Rider (OPP)
286.26
Premiums paid beyond May 10, 1997
1,764.00
Premiums paid beyond May 10, 1997
1,764.00

TOTAL DEATH BENEFIT


$102,641.00



NET CASH VALUE


$2,050.26



Loan Summary
from May 24, 1996  to May 12, 1997



Dividend Summary
as of May 10, 1997

No activity during the period





No activity during the period






Summary of Our Disbursements
from May 24, 1996  to May 12, 1997

 
Summary of Your Payments
from May 24, 1996  to May 12, 1997

No activity during the period


Policy Premium
$3528.00



Payment(s) for Optional Paid up
  Insurance Rider (OPP) Premium
300.00




TOTAL PAYMENTS


$3,828.00

100% Unapproved --   No content within The Visible Policy is authorized or verified by NYL   -- 100% Unapproved

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.

<:=-       Activity, Year 0 to Year 1       -=>
9 May 1997
Payments
Increase
in Value
Total
to Date
Base Death Benefit 1,764
100,000
OPP Death Benefit 300 877 877
Dividend Death Benefit


Total Death Benefit $2,064 $877 $100,877
Inflation-Adjusted Total Cost
and Base Death Benefit

$2,111
30apr97
CPI=2.5%

$102,500
Guaranteed Cash Value


OPP Cash Value
2.48 / 877 = 0.28%g
283.78 2.48 286.26
Dividend Cash Value


Total Cash Value to Date $283.78 $2.48 $286.26
early payment of $1,764 carried forward to next activity summary
10may96
$0.00
BBAG = (286.26 - 0 - 2,064) / (0 + 2,064)
IWR CV = (286.26 - 2,111) / 2,111
IWR DB = (100,877 - 102,500) / 102,500
-86.1%
-86.4%
-1.6%


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Accesses since 2 June 2002
last modified 22 November 2010
2002 - 2010 by Rich Franzen

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No content within The Visible Policy has been approved, authorized, or verified by New York Life or any of its representatives.  I have attempted to fairly and accurately portray the policy, but there are likely to be mistakes.  Over time, I shall endeavor to correct any misinformation found herein.
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