Showing a Cash Value Life Policy Based on Company Illustrations Function

Within the Structured Income Planning Add Account function, SIPS offers several ways to enter an insurance policy into a client's plan. For this hypothetical example, we will show you how to enter an insurance policy that is based on showing the cash value life policy based on company illustrations option. This insurance example we will be using will start with a cash payout in year 12 and go for the remainder of the plan. You'll learn how to manually enter the cash surrender value, income, and benefit amounts into the Death Benefit Data table, then save the account so the Death Benefit column appears on the Structured Income Planning landing page.   We'll start on the Structured Income Planning landing page. 

Related Articles: Adding an Annuity with a Pre-Existing Income Rider, Manually Adding an Annuity and Income Rider, Uploading an Excel Spreadsheet into the Death Benefit Data Table on the View/Edit Death Benefit Page, View Death Benefit Function

Insurance Asset:

Step 1: Edit: Click on the green Edit button underneath the structured income planning subheading title. 

Step 2: Add Account: Click on the green Add Account button underneath the structured income planning subheading. 

Step 3: View/Edit Death Benefit: Click on the green View/Edit Death Benefit button underneath the Manage Account subheading. 

Step 4: Account Name: Enter an account name.

Step 5: Hypothetical Return: Enter the hypothetical return.

Step 6: Tax Calculation Option: Click on the drop-down caret arrow in the text box and select the tax calculation option. See Article: Tax Calculation Options for Accounts 

Step 7: Sel: Click on the green Sel button next to the text box for the asset plan allocation and select the asset plan allocation.

Step 8: Show a Cash Value Life Policy Based on Company Illustrations: Click on the radio button for the Show a Cash Value Life Policy based on company illustrations. 

Step 9: Death Benefit Data: Enter the monetary amounts for the cash surrender value, income and benefit into the death benefit data table for all of the years. See Article: Uploading an Excel Spreadsheet into the Death Benefit Data Table on the View/Edit Death Benefit Page 

Step 10: Clear: To delete the data that is within the Death Benefit Data table, click on the green Clear button. 

Step 11: Save: Click on the green Save button underneath the Manage Account subheading.

Step 12: Structured Income Plan: SIPS will automatically take you back to the Structured Income Planning page. A new section of columns under Accounts should automatically appear. 

Step 13: Display Options: Click on the green Display Options subheading underneath the Structured Income Planning heading.  See Article: View Death Benefit Function 

Step 14: Column Display Options: Click on the green View Death Benefit button in the Column Display Options table.

Step 15: Structured Income Plan: SIPS will automatically take you back to the Structured Income Planning page. A new column called Death Benefit will automatically appear under the Insurance section.  The death benefit is the contractual payout on the insured's death, paid to the named beneficiaries.

Step 16: Income: This Income column represents the cashflow in and out of this account. Since the column header is market Income, a positive number is cashflow out of the insurance product and a negative number would be cashflow put into the insurance product.

Step 17: Account: The Account column shows the cash value of the annuity projected each year into the future. Some insurance products have benefits that are only available if there's cash value left in the annuity such as death benefits or long-term-care benefits. Using this feature, you can project when those benefits may or may not be available in the context of a client's financial plan.

If you feel you need more support or would like to set up demo time with one of our representatives, please contact us at: support@planscout.com.