How to use the life insurance tab

RightCapital is designed to provide significant insights into a client's financial landscape in order to create a space in which you, the advisor, can do financial planning just right.

The Life Insurance analysis considers the question, "What if one spouse dies 1 year from now?" 

To access the Life Insurance analysis screen, navigate to the client and select Insurance > Life Insurance.

What-if scenarios

The Life Insurance screen illustrates two projections of the surviving spouse's assets in the case that one were to die a year after the current date. This is, of course, a projection of their assets over time, not an insurance recommendation.

The Insurance projection is best used with the Cash Flow and Modified Cash Flow calculation methods (not Goal-based).

The projection includes everything that goes into the retirement projection (including any proposed values set on the Retirement Analysis screen) with the following adjustments:

  • Any existing insurance that would be paid out is included
  • Any income associated with the deceased is removed
  • Joint expenses are reduced by 15%

Pro-tip

The joint expense assumption is a global assumption that can be adjusted from the advisor portal under the Assumptions > Misc tab.

Any insurance amount received will be assumed to be invested with the same proposed asset allocation as their other investment assets.

Under Action Items, the impact of different levels of additional insurance is illustrated by adjusting the slider bars:

The impact of the additional insurance in the projection is reflected in the blue shaded area in the chart.

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