Special Scenario Events and their Effect on Employment
The Time screen includes special events for use in scenario building, which are located to the right of the Events palette. Some of these events may affect the owner’s employment income.
Replacement mortality events, which can be used only in what-if scenarios, will end the event owner’s employment income. Other incomes owned by the deceased will continue payment to the surviving spouse or partner unless set otherwise on the Other Income screen > Advanced Settings > Survivorship panel.
The Income Protection event is used to trigger payouts from income protection cover when modelling a disability or job loss. This special modelling event is paired automatically with a Disability Recovery event for setting the duration of the job loss or disability. Employment income is assumed to end, at least temporarily, at the Income Protection event. Employment income will begin again (with employment growth factored in for the intervening years) at the Disability Recovery event, provided that the recovery is scheduled prior to the income’s end event, as set on the Employment screen’s Time panel.
The Critical Illness event is used only to trigger payouts from the event owner’s CI cover. No assumptions are made about the impact of critical illness on one’s employment since an individual could be critically ill but still earning an income. If the assumption needs to be made that employment ends with critical illness, simply deselect the employment income’s end event (the red dot next to Retirement) and select Critical Illness as the event ending employment.