How to Use:

• Enter premiums for each year in the form.
• Click the “Check Timeline” button to see which years exceed the limit (red) and which are within the limit (green).

  The default values in the form represent the premium amounts for each year that are initially displayed when the page loads. These values can be adjusted by the user, but they provide a starting point for the premiums that might typically be used in the context of a Modified Endowment Contract (MEC) test.

  Explanation of the Default Values:

  1. The default values in the form represent the premium amounts for each year that are initially displayed when the page loads. These values can be adjusted by the user, but they provide a starting point for the premiums that might typically be used in the context of a Modified Endowment Contract (MEC) test.

     1. Year 1: 5000

        • This could represent a standard initial premium that a policyholder might pay in their first year.

     2. Year 2: 4500

        • Slight decrease from Year 1, possibly reflecting a reduction in premium as the policyholder becomes more familiar with their investment.

     3. Year 3: 6000

        • Significant increase that may represent a higher premium due to an adjustment in the policy or an increase in coverage.

     4. Year 4: 4700

        • Return to a lower premium, which might indicate the policyholder adjusting their contributions again, possibly in response to financial circumstances or policy performance.

     5. Year 5: 6500

        • Another increase, which could suggest the policyholder’s growing confidence in the policy or a change in their financial strategy.

     6. Year 6: 4800

        • Decrease that might reflect a strategic decision to lower contributions while still maintaining the policy.

     7. Year 7: 4900

        • A slight increase from Year 6, perhaps indicating a planned gradual increase in contributions as the policyholder’s financial situation improves.

     Importance in Context:

     • These values can help demonstrate how contributions may vary over time in response to changing financial conditions or policyholder goals.
     • They serve as a foundation for testing whether the total premium payments meet the Modified Endowment Contract (MEC) requirements for the seven-pay test.

     Note:

     • The specific values are illustrative and can be adjusted based on real-world scenarios or user preferences. Users are encouraged to replace them with actual premiums that reflect their unique situations when using the form.