Ameritas vs Penn WL - a $130K decision

[SParker]

I also ran this at 3.5%, one percent above the 2.5% guaranteed rated and it still kicked out almost 4 times the income that these expensive whole life policies provided

I am crunching the numbers between a Penn WL policy and an IUL (both $20K, 20 pay). I have a hard time seeing that the IUL can still kick out 4 times the lifetime income starting at year 21 if the return is down to 3.5% for the IUL.

Isn't the lifetime income calculated based on the amount of cash/account value at the time when lifetime income option is exercised?

Account/Cash value & DB 20 years into the policy, (all #s are rounded):

Penn's G-CV = $400K
IUL's acct value = $490K

Penn's G-DB = $700K
IUL's DB = $700K

As you can see above, the numbers are very close for the two policies, so shouldn't the lifetime income be similar also?

If I use NON Guarantee values for the Penn's policy, then Penn's numbers are actually a lot more favorable than the IUL at 3.5% return, see below

Account/Cash value & DB 20 years into the policy, (all #s are rounded):

Penn's NON GUARANTEED-CV = $600K
IUL's acct value = $490K

Penn's NON Guaranteed - DB = $1M
IUL's DB = $700K


Am I analyzing these policies wrong?

Thanks