Death benefits were set to their minimums respectively to allow $25,000 going into the contract for the entire 10 years.
Blending rules are the same for the 10 pay and L99 10:1.
The point about flexibility is fine in theory but problematic in reality. With the amount of cash going into the policy there isn't much in the way of flexibility without producing a MEC. Additionally most WL contracts have limits to the rules concerning PUAs. Guardian's is anything up to 3 times base premium for the first 10 years and 1 times base premium after that with the ability to change up or down within those limits with a minimum of $100 per year; going beyond this requires additional underwriting. Massmutual allows a PUA rider that is fixed at issue and can be increased by (I think I'm remembing this correctly) 5% annually, but if decreased cannot automatically be increased to the original amount with a minimum to keep the rider at 200 or 300 dollars per year. NYLife I don't know, never sold a contract, don't like them very much.
So use L99 and gain, maybe, some flexibility but pay a much higher waiver rider (even if taking a reduce paid up policy at some future date), and leave certain elements flapping in the wind (if dividends perform less favorably and you are trying to offset the premium now you have less cash and a premium to still satisfy
Now even if he wanted to continue paying base premiums into the L99 product after the 10 years, in year 30 he'd have $1,025,844 in projected cash value, looks a little better than the $995,225 projected in the 10 pay, by about $30,000. But note the difference in premium between the two, a little over $38,000 more goes into the L99 contract doing this...so he lost $8,000.
Blending rules are the same for the 10 pay and L99 10:1.
The point about flexibility is fine in theory but problematic in reality. With the amount of cash going into the policy there isn't much in the way of flexibility without producing a MEC. Additionally most WL contracts have limits to the rules concerning PUAs. Guardian's is anything up to 3 times base premium for the first 10 years and 1 times base premium after that with the ability to change up or down within those limits with a minimum of $100 per year; going beyond this requires additional underwriting. Massmutual allows a PUA rider that is fixed at issue and can be increased by (I think I'm remembing this correctly) 5% annually, but if decreased cannot automatically be increased to the original amount with a minimum to keep the rider at 200 or 300 dollars per year. NYLife I don't know, never sold a contract, don't like them very much.
So use L99 and gain, maybe, some flexibility but pay a much higher waiver rider (even if taking a reduce paid up policy at some future date), and leave certain elements flapping in the wind (if dividends perform less favorably and you are trying to offset the premium now you have less cash and a premium to still satisfy
Now even if he wanted to continue paying base premiums into the L99 product after the 10 years, in year 30 he'd have $1,025,844 in projected cash value, looks a little better than the $995,225 projected in the 10 pay, by about $30,000. But note the difference in premium between the two, a little over $38,000 more goes into the L99 contract doing this...so he lost $8,000.