Let’s refer to the previous post of the $100,000 annual premium regular investment-linked plan portfolio. The bar chart below is extracted from the previous post.
Based on the projection, with an estimated amount of $185,000 we can potentially fully self fund a $100,000 annual regular investment plan. From Year 6 onwards, a potential $7000 excess dividend after funding $100,000 of the regular investment linked plan. Then , by the 10th year, we potentially has excess $66,000 annual dividend on top of the $100,000 premium payment. Eventually, potentially $230,000 annual dividend on top of the $100,000 premium payment at the year 20.
In this particular case study, based on projection above, the investor will be able to potentially create a passive income of $7,000 at the end of Year 6, $66,000 at the end of Year 10 and $150,000 at the end of Year 15 and $230,000 at the end of Year 20.
When deploying DCS via a regular premium investment-linked policies of annual premium $100,000, investor will also potentially create an insurance coverage of $600,000 sum insured at the end of Year 6, $1,000,000 sum insured at the end of Year 10, $1,500,000 sum insured at the end of Year 15 and $2,000,000 at the end of Year 20.
Creation of growing cash flow and growing insurance coverage with as little as $185,000
For investors deploying DCS via an investment linked plan, beside building up their passive income for retirement and legacy plan, they can also achieve their estate plan concurrently.
Disclaimer: Do note that the above is just for personal sharing for brief reference and education purposes only. It is not meant to be an investment or financial advice. For financial advice, please seek help from your financial planner or financial consultant.