Another guaranteed part of this policy is the principle, including the credited interest earned every year.
In practice, this means that if both spouses pass away before they have been paid back the $300,000 they put in, plus any interest, their beneficiaries are guaranteed to get the rest of the money.
In the second column, the estimated cash value of the policy for every year was shown. In the fourth column, the guaranteed cash value is shown. The numbers in column 4 look much lower since they are the guaranteed amount, and based on the premise that the market would do poorly the entire life of the policy. It is more likely that your beneficiaries would get an amount closer to the numbers in the second column, but the fourth column shows the minimum amount they would receive.
If we look at the chart, we can see that at age 81, the couple would have received their full $300,000 back in yearly income payments. That means that starting at age 81, their heirs are guaranteed nothing.
But, if both spouses passed away early, say age 72, and only got 2 years of income payments, their heirs would receive, at a minimum, $257,133.
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