Structure matters
Same premium. Very different retirement.
Most policies are sold with a big death benefit because it pays a bigger commission. Structured for accumulation, the death benefit is set to the IRS minimum and the rest compounds for you.
Premium allocation
12%
Death benefit cost
88%
Into cash value
Share of premium into cash value88%
92% is the practical ceiling — the policy must keep the IRS minimum death benefit to stay life insurance (and avoid becoming a MEC).
Bad setup — 55% to cash value
Commission-heavy death benefit
$36,293/yr
Large death benefit, thin accumulation, slow early cash value.
Good setup — 90% to cash value
Max-funded, minimum death benefit
$51,170/yr
$14,877 more per year — from the exact same premium.