The Visible Policy, Year 0

Here is my statement for the end of the zeroth policy year. Ok, it is not really a "statement". Those are annual, and the first is generated one year after the policy is issued. Things happened, however, during Year 0. For one thing, I received the policy itself (see its cover page). And when the policy was about three months old, NYLIC sent the following letter.

NEW
YORK
LIFE

The Company You Keep ®

New York Life Insurance Company
51 Madison Avenue, New York, NY 10010

Harry G. Hohn
Chairman of the Board

August 20, 1996

0000465
Dear Richard W Franzen:

Thank you for your recent purchase of a life insurance contract. We are glad to have you as part of the New York Life family. We hope that this relationship will be an enduring one.

New York Life has always provided products that meet the needs of our customers. We have consistently put the interests of our valued customers first, and we will continue this tradition.

It is important to us that each New York Life customer be satisfied with the quality of our products and services. The following information is an overview of the policy you recently purchased. (We suggest that you place this letter with your policy.)

Insured:
Policy Number:
Policy Owner Tax ID:
Policy Date:
Policy Plan - Face Amount:

Initial Premium / Frequency:
Agents / Representatives:

Richard W Franzen
## ### ###
###-##-####
May 10, 1996
Whole Life - $100,000
Option to Purchase Paid-Up Additions
$1,764.00 / Annual
Rick Roberts, CLU ChFC
Diane Lenore Roberts-Schmidt

Please review the above information along with your policy. If you have any questions, please contact your New York Life agent or call our Customer Service line at 1-800-###-####.

Again, thank you for the interest you have shown in our products and the faith you have placed in our Company. We look forward to being The Company You Keep ® to serve your continuing need for financial security and peace of mind.

Sincerely,
Harry G. Hohn

NYLIFE for Financial Products & Services

There was policy activity during the year. I made two purchases of Paid-Up Insurance (PUA), totalling $300. My policy's death benefit was permanently increased by $877, and it acquired $277.12 of cash value. Because the payments were not made within one month of the policy anniversary, "late payment adjustment factors" were deducted. In August 1996, I purchased $100 PUA, but lost $2.28. In early April 1997, I purchased $200 PUA, but lost $11.60. Without these losses, both my death benefit and cash value would have been higher.

The PUA cost adjustment is stated within the policy. Still, from then to now, all my PUA purchases were made within one month of the policy anniversary. Three percent is always lost in any such purchase (costing $9 in addition to the amounts above), however no more money has been lost to the late payment factor.

Note: the cost of PUA goes up each year. The late payment adjust factor is a mechanism NYLIC uses to prorate the cost of paid-up insurance. The $11.60 adjustment was made almost eleven months into policy year, essentially bringing the cost to what PUA would have been at the beginning of the second year.

`<:=-` Activity, Year 0 to Year 1 `-=>`
9 May 1997	Payments	Increase in Value	Total to Date
Base Death Benefit	1,764		100,000
OPP Death Benefit	300	877	877
Dividend Death Benefit
Total Death Benefit	$2,064	$877	$100,877
Inflation-Adjusted Total Cost and Base Death Benefit	$2,110	30apr97 CPI=2.5%	$102,500
Guaranteed Cash Value
OPP Cash Value	277.12	0.00	277.12
Dividend Cash Value
Total Cash Value to Date	$277.12	$0.00	$277.12
potential partial refund of premium excluded from totals			10may96 $0.00

Rich's Home Page <<|=- Current State Current Statement

No content within The Visible Policy has been approved, authorized, or verified by New York Life or any of its representatives. I have attempted to fairly and accurately portray the policy, but there are likely to be mistakes. Over time, I shall endeavor to correct any misinformation found herein.

Statement: Year 0