Insurance Policies

1. The Policy name will default to [Client's] Group Life Insurance, but you can enter a custom name if you'd like. In joint plans, you will also want to choose either the client or the co-client as the Owner.
2. Enter the dollar amount for the client's Annual premium, and specify any Premium inflation. In the cash flows, the premium will reflect as an expense and will increase by the inflation percentage each year.
3. Enter the Death benefit. If the owner of the policy passes away prior to their retirement age, the death benefit will pay out within the plan as other income and will be reinvested into the taxable bucket at the end of the cash flow year.

Group life coverage and premiums will automatically end at the client's retirement age. You can set the retirement age for each client within the Profile > Goals > Retirement Age goal card.

In addition to adding existing group life coverage in the Profile > Net Worth section, group life policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.

1. The Policy name will default to [Client's] Term Life Insurance, but you can enter a custom name if you'd like. You will also want to choose the client, co-client, joint, or Irrevocable Life Insurance Trust as the Owner.
2. Choose a member of the household as the Insured individual. In joint plans, use the Beneficiary % field to specify the percentage of the death benefit that the co-client will receive within the plan.
3. Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
4. Enter the Death benefit, and specify the end of the term using the Policy ends field. If the insured individual passes away prior to the end of the policy term, the death benefit will pay out within the plan as other income and will be reinvested into the taxable bucket at the end of the cash flow year.

• The client or co-client (the death benefit will be paid out when the indicated client dies, if prior to the Policy ends date)

• 'First to die' (the death benefit will be paid out at first death, if prior to the Policy ends date)
• 'Last to die' (the death benefit will be paid out at second death, if prior to the Policy ends date)

• A child or grandchild (the death benefit will not be paid out within the plan)

In addition to adding existing term life coverage in the Profile > Net Worth section, term life policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.

1. The Policy name will default to [Client's] Whole Life Insurance, but you can enter a custom name if you'd like. You will also want to choose the client, co-client, joint, or Irrevocable Life Insurance Trust as the Owner.
2. Choose a member of the household as the Insured individual. In joint plans, use the Beneficiary % field to specify the percentage of the death benefit that the co-client will receive within the plan.
3. Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
4. Enter the Death benefit. When the insured individual passes away, the death benefit will pay out within the plan as other income and will be reinvested into the taxable bucket at the end of the cash flow year.
5. If the policy has a cash value component, enter the current Cash value, choose a Cash value approach, and specify any Distributions. To learn more, please reference our article on Cash Value Life Insurance.

• The client or co-client (the death benefit will be paid out when the indicated client dies, if prior to the Policy ends date)

• 'First to die' (the death benefit will be paid out at first death, if prior to the Policy ends date)
• 'Last to die' (the death benefit will be paid out at second death, if prior to the Policy ends date)

• A child or grandchild (the death benefit will not be paid out within the plan)

For whole life policies with a cash value component, you can enter the current cash value, determine how the cash value will be projected out into the future, and even model tax-free loans or a full surrender. For more details, please visit our article on Cash Value Life Insurance.

In addition to adding existing whole life coverage in the Profile > Net Worth section, whole life policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.

1. The Policy name will default to [Client's] Disability Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
2. Enter the dollar amount for the client's Annual premium. The premiums will be reflected as an expense within the Retirement > Cash Flows for the duration of the policy.
3. Choose whether the Benefit type is a monthly dollar amount, or a percentage of the client's salary. Enter the Monthly benefit, and check the 'Benefit taxable' box if the benefits paid are to be considered taxable income. If there is a Monthly benefit cap, check the box and enter the monthly cap to the right.
4. Use the Benefit inflation field to specify the percentage that the disability benefits will increase each year. You can choose whether this is simple or compound interest using the Inflation type field. Benefit inflation will only impact the monthly benefit, not the benefit cap.
5. Specify the Benefit period (the number of years benefits will be paid) and the Elimination period (the number of days the client must wait after the disability event before receiving benefits).

1. The Policy name will default to [Client's] LTC Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
2. Choose the client or the co-client as the Insured Individual, and specify the Purchase year by entering a calendar year to the right.
3. Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
4. Use the Premium inflation field to specify any annual increase on the premium amount. Specify whether premiums are pre-tax or after-tax using the Premium tax field.
5. Enter the amount of the Daily benefit, and specify any Benefit inflation. You can also choose between compound and simple interest as the Inflation type.
6. Specify the Benefit period (the number of years benefits will be paid) and the Elimination period (the number of days the client must wait after LTC begins before receiving benefits).
7. Check the 'Benefit taxable' box if the benefits paid are to be considered taxable income.

LTC Insurance policies will automatically kick in within the Cash Flow projections when LTC costs begin for a respective client. The cost and timing of long-term care are both entered into the Profile > Goals > Long-Term Care Costs card.

You can use the dedicated Long-Term Care Insurance Analysis to visualize the impact that a client's LTC insurance coverage will have in the final years of their plan. The LTC analysis can be accessed within the Insurance > Long-Term Care module of each plan.

In addition to adding existing LTC coverage in the Profile > Net Worth section, LTC policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.

1. The Policy name will default to [Client's] LTC Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
2. Choose the client or the co-client as the Insured Individual, and specify the Purchase year by entering a calendar year to the right.
3. Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
4. Use the Premium Inflation field to specify any annual increase in the premium amount. Specify whether premiums are pre-tax or after-tax using the Premium tax field.
5. Enter the amount of the Death benefit, and specify any Benefit inflation. You can also choose between compound and simple interest as the Inflation type.
6. Specify the Acceleration period (death benefit will be split between the number of years indicated if LTC occurs), the Elimination period (the number of days the client must wait after LTC begins before receiving benefits), and the Extension Period (how many years beyond the acceleration period benefits will be paid).
7. Check the 'Benefit taxable' box if the benefits paid are to be considered taxable income.

Hybrid LTC policies allow for the acceleration of the death benefits to pay for LTC expenses. The death benefit amount will be split between the number of years indicated as the ‘Acceleration period’, and will continue beyond the ‘Acceleration period’ for the duration specified as the ‘Extension period’.

Hybrid LTC Insurance policies will automatically kick in within the Cash Flow projections when LTC costs begin for a respective client. The cost and timing of long-term care are both entered into the Profile > Goals > Long-Term Care Costs card.

You can use the dedicated Long-Term Care Insurance Analysis to visualize the impact that a client's Hybrid LTC insurance coverage will have in the final years of their plan. The LTC analysis can be accessed within the Insurance > Long-Term Care module of each plan.

In addition to adding existing Hybrid LTC coverage in the Profile > Net Worth section, Hybrid LTC policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.

1. The Policy name will default to Homeowner Insurance, but you can enter a custom name if you'd like. You will also want to choose the client, co-client, or joint as the Owner.
2. Enter the Coverage amount, and then use the Link to home field to link the policy to a property within the plan.

For homeowner policies, only the annual premium will have an impact on the Retirement Analysis and Cash Flow projections. The remaining details will feed into the Insurance module, and can be analyzed within the Property and Casualty area.

1. The Policy name will default to Auto Insurance, but you can enter a custom name if you'd like. You will also want to choose the client, co-client, or joint as the Owner.
2. Enter the dollar amount for the client's Annual premium, and then use the Premium inflation field to specify any annual increase on the premium amount.
3. In addition to the annual premium, enter information about the Deductible, coverage limits for bodily injury per person (Bodily injury pp), bodily injury per accident (Bodily injury pa), and Property damage.
4. Check the boxes to indicate if the policy includes Comprehensive coverage or Collision coverage.
5. Specify the end date of the policy using the Policy ends field.

For auto policies, only the annual premium will have an impact on the Retirement Analysis and Cash Flow projections. The remaining details will feed into the Insurance module, and can be analyzed within the Property and Casualty area.

1. The Policy name will default to Umbrella Insurance, but you can enter a custom name if you'd like. You will also want to choose the client, co-client, or joint as the Owner.
2. Enter the dollar amount for the client's Annual premium, and then use the Premium inflation field to specify any annual increase on the premium amount.
3. Enter the Coverage amount, and then specify the end date of the policy using the Policy ends field.

For umbrella policies, only the annual premium will have an impact on the Retirement Analysis and Cash Flow projections. The remaining details will feed into the Insurance module, and can be analyzed within the Property and Casualty area.