Existing Term Life Insurance policies can be added via the Net Worth section of the Profile (or the Net Worth step of the initial data entry process), by selecting Add Account > Insurance > Term Life:
Term Life Data Entry
- 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.
- 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.
- 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.
- 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.
Additional Information
Options for the Insured individual include:
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 joint plans, if the client's spouse is not the sole beneficiary of the insurance policy, you can use the Beneficiary % field to indicate the percentage of the policy proceeds that should go to the spouse and be included within the plan. Please be aware that even in individual client plans (no co-client), this field will still determine the percentage of the benefit that pays out within the projections.
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.
