Sun Life Illustrations - Sun Par Accelerator case study

Transcription

1 Case study Important! Please read the Sun Life Illustrations module before completing this case study. Use Sun Life Illustrations to illustrate a Sun Par Accelerator with the following information: Kaitlyn and James Kane are looking for a participating permanent life insurance. During your meeting with them, you heard the following needs and circumstances that need to be considered when proposing a solution: They need the participating permanent life insurance to be fully guaranteed and can be paid-up as quickly as possible. They are looking for a guaranteed lifetime protection of $500,000 that will ensure the transfer of their hard-earned estate to their loved ones. They are also looking to diversify their assets through life insurance. Guarantees are very important to them, however they do like the idea of long-term growth. They are interested in accessing their cash value and would like to see how taking a policy loan would impact the policy. Plan & client details Plan type is Joint. 52 year-old male, non-smoker, rated 150%. 50 year-old female, non-smoker, no ratings. Coverage details Joint Last-to-die Premiums to second death. Payment frequency is Yearly. Coverage amount is $500,000. Assumptions Primary dividend scale is Current. Marginal tax rate is 42% for life. Optional benefits Loans Accidental death benefit on Katlyn s life is $500,000 with a Rating of standard. Accidental death benefit on James s life is $500,000 with a Rating of 1.5 times. Type is Level maximum with a From year of 15 and a To year of 25. Loan interest rate is 5%. Important! The screen shots in this document may differ from when you run the case study. We ve completed this illustration using version of Sun Life Illustrations along with system defaults. Also, if you complete the steps in a different order, the information in your illustration may be different than what s displayed in the screen shots. WS IN E 1 November 21, 2016

2 Creating an illustration in Sun Life Illustrations: 1. From your desktop, double click the Sun Life Illustrations icon. 2. Under the Choose a Product to illustrate section, select the Sun Par Accelerator link. The Sun Life Illustrations page opens and defaults to the PLAN DESIGN tab. 3. Under the Plan & client details section, select Joint life, and enter James and Kaitlyn s information. WS IN E 2 November 21, 2016

3 4. Under the Coverage details section: from the Joint type drop-down list leave the default of Joint last to die (Premiums to second death) selected. in the Coverage amount field, enter the $500,000. for Premium frequency, select Yearly. Tip! As you enter information, the Illustration Summary displays the details of the plan and any important messages. In order to ensure that the policy remains tax-exempt, Sun Par Accelerator comes with the Enhanced insurance dividend option automatically built in. 5. Under the Assumptions section: For the Primary dividend scale leave the default of Current selected. For the Marginal tax rate, change the rate to 42% and leave the default for To year. WS IN E 3 November 21, 2016

4 6. Under the Optional benefits including Term insurance, Other optional benefits section: select Accidental death select James and in the Amount field enter $500,000 and then from the Rating drop-down list, select 1.5 times. select Kaitlyn and in the Amount field enter $500,000 and leave the default Rating of Standard selected. Tip! Premiums for optional benefits may continue past the payment period of the base plan where applicable. 7. Under the Withdrawals & loans section: For Withdrawal or loan? select Loan. For Based on leave, the default of Year selected. For Loan interest rate, leave the default of 5.00%. From the Type drop-down list, leave the default of Level maximum selected. In the From year field enter 15 and the To year field enter From the Illustration Summary section, click the Refresh button. WS IN E 4 November 21, 2016

5 Tip! Policy loans allow clients to take advantage of the cash accumulated in their policy. The higher total cash value in the policy, the more funds clients can borrow. 9. Click Save, and from the Save illustration dialog box, in the Illustration name field give the recommended name of Firstname Lastname Product Coverage amount and then click Save. 10. Click the REPORT DESIGN tab. 11. For the Designed for field enter in Mr. and Mrs Kane and then select Cover Page. The Client Report Options that are greyed out are mandatory and will always print on a report. If you select Business card information to be printed on the report, ensure your name shows above the manage business cards link. WS IN E 5 November 21, 2016

6 12. Click View Client Report to open the report in Adobe Reader. 13. From the File drop-down menu, click Save As. 14. From the Save As dialog box, in the File name field, enter Firstname_Lastname_Product_Coverage amount and then click Save. Important! Sun Life Illustrations does not have a training database, therefore, you will need to delete any reports that you have saved and follow these steps to delete this illustration: 1. From the top tool bar, click Open. 2. From the Saved illustrations dialog box, click the checkbox in front of the name to select. 3. Click Delete. 4. Click Delete and then click Delete to confirm. WS IN E 6 November 21, 2016