An illustration of the pre-tax profits and sales a business would have to generate in order to equal the income-tax-free death benefits of life insurance.
Complete the requested information and click the 'Submit' button. Use only whole dollar amounts and do not use commas. Assume all entries are required unless otherwise specified. Personal Information:
Name of the Prospect (optional):
Date to Appear on Cover Page (change as appropriate):
Tax Bracket: Select the appropriate tax bracket for the entity that will be purchasing the life insurance -- either the corporate tax bracket or, in the case of an unincorporated business, the individual tax bracket of the sole proprietor or partners.
Corporate
Individual
15%
10%
25%
15%
34%
25%
35%
28%
38%
33%
39%
35%
Other: %
Life Insurance Death Benefit:Enter the amount of the life insurance death benefit. Do not use commas.
$
Pre-Tax Profit Margins: Enter a range of three pre-tax profit margins to be used to illustrate the sales or revenues required to produce the pre-tax profits equivalent to the income tax-free life insurance death benefit. Pre-tax profit margin is equal to net profits before taxes divided by total sales or receipts. If uncertain, a pre-tax profit margin of 10% is a conservative estimate and means that for every $1.00 of sales or revenues, the business nets $0.10 before taxes.
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