Planit:Life Insurance Calculator

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There is more than one way to learn about PlanPlus Planit. Check out our other Training options, from structured tracks around planning types, to self-serve, mix-and-match topics.

In this Video you will Learn...
How do I quickly calculate the coverage my client would need in the event of death?
• Income replacement versus calculator
• Calculator data entry fields
• Overview results

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Other Related Topics
Life Insurance Report Needs on Death Disability Insurance Calculator
Life Insurance Estate Assumptions Death Scenario

The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.

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The Life Insurance Calculator help you to determine the total amount of life insurance that the client will require in the event of a death. The Life Insurance Calculator illustrates the Total Capital Required to beneficiaries. The calculator takes into account the client’s age, percentage of earned income that will need to be replaced, current insurance coverage, and lump sum benefits.

You can use this calculator either as a freestanding tool or you can have a client already selected from the PlanPlus Planit software and load a scenario into the calculator. Either method you use the functions are the same.

Scenario: Choose the scenario either clients death/disability or spouse’s death/disability. This option is only visible if you all ready have a client selected within PlanPlus Planit.

Current Age: The age at which the scenario occurs. By default this is the current age.

Current Earned Income: The current total income of the client or spouse. By default, that is Salary, Other Taxable, and Non-taxable income from the Cash Flow screen.

Percentage Salary to Replace: The percentage of income needing replacement. This is taken from the Planning Defaults table.

Inflation: The factor representing the inflationary index. The inflation rate from the Client Information Personal screen will be used.

Keep in mind that the compounding effect of inflation will have a significant impact on the revenue stream that the insurance needs to generate over a large number of years.

After Tax Rate of Return: The estimated return on investments after taxes are paid.

Current Insurance Coverage: The amount of insurance currently held in today’s dollars.

Lump Sum Costs: Any cost associated with the scenario in a lump sum, such as burial. This defaults to Assumed Burial Costs from the Planning Defaults.

Lump Sum Benefits: As above, but are the benefits of the scenario. Defaults are taken from the Planning Defaults window.

Other Revenues/Year: Any source of revenue such as survivor benefits on a pension. Defaults are taken from the Survivor Benefits.