Age, it does have a impact on the cost of insurance. But again, one way I particularly design it is that you’re minimizing the base premium anyway. It doesn’t have as much of an impact as one would think on the overall cash value performance of the policy. Again, a older person has less time for the compounding dividends to take into effect and grow in the later years.
But as far as the early or performance of it, they’ll usually even a 60 year old. We can get break even point a year, five maybe or six, but most of them by year five or what breakeven point and still have growth there. Again, it’s just that it doesn’t have the compounding the years of the compounding for it to really take off on the later years.
On this, just one little example when I was like 35 and my friend was 50. We both did the same policy just to see what the numbers would look like. Like with a hundred thousand dollars per year, we looked at like the cash value. The first year we got back and it was pretty simple, I won the bet. Because I said it wasn’t, it didn’t make much of a difference and it didn’t, it was pretty negligible. But I think if he smoked cigarettes, then that would have be more noticeable. Yeah, for sure.
Yeah, that is true health. And again, I link touched on it earlier. You don’t always have to be the insured person within your family, a spouse, a working child. You can always, maybe have them be the insured person versus yourself, if you’re older or you have maybe some underlying health conditions.
And to me that didn’t make sense in the beginning because you know, these are important factors, but then again, the way we’re configuring that it’s not for really the depth payouts. When you think about like that, this makes sense it’s for more, for the liquidity of putting money in here and withdrawing it right out.