The software has several tools for modelling and analysing early mortality including need analysers, replacement mortality events, and estate distribution (legacy) overviews.
Option 1: Use the Life Insurance Need Analyser to Find the Total Need Following Mortality
If you want to find the total need, covering all shortfalls following the death of a client (provided that there remains a surviving client, a spouse or partner, in the plan), you could use the software's Life Insurance Need Analyser.
This tool is found on the Let's See charts.
Click Simulations in the panel at the bottom of the charts and select Life Insurance Need.
Enter the number of years until the individual's death (e.g. 1 if the client is to die one year into the plan) and click Analyse.
The Need Analyser will provide the total lump sum needed to cover all shortfalls thereafter, again, provided that a surviving spouse/partner remains in the plan.
Note: When running the simulation, the upper-chart will show the simulated mortlaity event and any shortfalls that result. You can view the year-by-year details of the chart to see how any specific expenses (such as school fees) are impacted, by clicking the bar of the chart, select the Detailed Info link on the chart legend, and select the Expenses tab. The Unfulfilled Amount column will show the amount of any expense shortfalls in the selected year.
Option 2: Model Early Mortality in a Scenario, Using Replacement Mortality Events
You can also model the early mortality of a client in a full-on scenario. Viewing the scenario/plan that will serve as the foundation (source) to copy for the scenario, click the What-If button, top left and enter a name for the new scenario (e.g. Early Mortality Susan). A working copy of the source plan will be created. You can make any changes to this scenario without affecting any other plans in the client case.
Go to the Time screen and select the name of the person whose early mortality you are modelling and drag and drop a Mortality event on the timeline for that person. This will create a movable replacement mortality event that can be used to see the effect of an early mortality at any point in the timeline.
We have video that explains how to use this feature on our YouTube channel.
If you are modelling early mortality in a scenario, you may use the Lump Sum Need Analyser to find the same total need at mortality that is generated by the Life Insurance Need Analyser.
Note: The nice thing about scenarios is that you can run full reports from them, if needed.
To run this analysis, go to the Let's See charts > select Simulations > Need Aanalyser > Lump Sum Need analyser to determine the total amount needed to cover any shortfall at mortlaity. elect the replacement Mortality event as the lump sum timing event.
Again, you can also view the year-by-year details of the chart to see how any specific expenses (such as school fees) are impacted, by clicking the bar of the chart, select the Detailed Info link on the chart legend, and select the Expenses tab. The Unfulfilled Amount column will show the amount of any expense shortfalls in the selected year.
Single Client Plans: View Estate Distributions in the Legacy Overview
If this is a case where there is a sole client, look instead to the Overview > Legacy screen. This screen provides a detailed report of the estate distribution upon planned mortality (as set in the timeline), immediate mortality (set one year into the plan, and joint mortality, in cases for couples. From this report you could probably deduce whether the estate will provide adequate funds to cover future education costs for the children.
Note that these legacy overviews can also be output into printable reports from the Reports screen.