Joint Life Second DeathPremium vs Benefit Modeller

Time value of money analysis · NPV · IRR · UK mortality basis

Also in this toolkit:IHT Exposure Calculator— a step-by-step estimator for your inheritance tax position under current HMRC rules: nil-rate bands, residence band and tapering, seven-year gifts and a full breakdown.

Lives Assured

Life 1 Age

Sex

Life 2 Age

Sex

Policy Terms

Monthly Premium (£)

Sum Assured (£)

Discount Rate

3.5%

Suggested benchmarks:
0% — Nominal/cash
2–3.5% — CPI-linked / gilt yield
5–7% — Equity / investment return

Mortality Estimate

Expected 2nd death: Year 27

Ages at 2nd death: 89 / 86

UK ONS mortality basis (simplified)

Total Premiums (Nominal)

£351,162

Over 27 yrs

PV of Premiums

£225,072

At 3.5% discount

PV of Benefit

£396,082

At 3.5% discount

Net PV Advantage

£171,011

Benefit exceeds cost

Implied IRR

7.22%

Return on premiums paid

Nominal Break-even

Year 77

Cumulative prems = £1,000,000

PV Break-even

Year 38

PV prems = PV benefit at 3.5%

PV of benefit vs cumulative PV of premiums — discount rate: 3.5%

Probability of at least one life surviving (mortality profile)

Mortality estimates use a Gompertz-Makeham model calibrated to UK ONS 2020–22 National Life Tables (England & Wales). Expected year of 2nd death is a probability-weighted mean over a 75-year window with normalised distribution — actual outcome will differ. This illustration is for advisory discussion purposes only and does not constitute a personal recommendation. Discount rates are illustrative; past investment returns are not a guide to the future.