Payouts from critical illness (CI) policies are triggered using the special Critical Illness icon found towards the right side of the events 'palette', in the Time screen.
Ordinarily, one would be modelling the pay-out from a CI policy, as a hypothetical situation, within a 'what-if scenario; there is nothing to stop you from doing this in the Base Plan, however, should it apply to your client's current situation.
In any case, have your CI policy entered on the Protection (Insurance) > Critical Illness screen with the owner/beneficiary of the policy selected in the People panel to the right side of the screen.
To trigger a payout from the policy, go to the Time screen and, in the Events panel at the top of the screen, select (check mark) the policy owner. Left-click on the Critical Illness event and holding down your left-click button, drag-and-drop the event onto the timeline below, positioning in a year in which the CI pay-out is being scheduled to occur.
This event will trigger the payout of any active CI policies owned by the owner of the Critical Illness event, provided the policy is still within its term (is active) in the year the critical illness event is scheduled.
Please bear in mind that we intentionally hide lump sum benefit payouts (benefits that are not received in multiple payments) from protection policies from the Cash Flow chart, as these can be quite large and often skew the charts. These inflows are accounted for however.
NB: Also note that unlike an Income Protection event, the CI event does not end one's employment, since you could be critically ill and continue to work. If you want to assume that the client's income ends with the critical illness, in your scenario, select the CI event as the end event for the person's employment. Go to the Employment screen, select the person's income, deselect the end event (red dot) that is probably next to the person's Retirement event and select instead the new Critical Illness event to mark the end of the income.
The Employment screen's Advanced Settings > Step Up / Step Down panel could also be used - for example - to schedule a 'step-down' to part-time employment and a reduction in income, at the Critical Illness event, if the income is to decrease but not end entirely. The 'bottom line', here, is that the consequences of a critical illness, with respect to one's earnings, are not obvious and, as such, the 'what if' scenario would need to be tailored in this regard.
It may well be, if following one or other of the suggestions outlined above, that the introduction of a 'critical illness' will result in a shortfall, in the client's 'cash flow'. One could then use the 'need analyser' simulation, to estimate the amount of cover that would be needed to alleviate the shortfall, at the occurrence of the Critical Illness event. Read More >> about 'Needs Analysis' Simulation.
Finally, in many instances, clients have term life cover, with CI riders. Since we don't currently model a combined life/CIC policy, we usually recommend that advisers enter both types of cover into the client plan, individually, while only entering a premium amount for one of the two, usually the term cover. If this is the case and you are running a CI scenario, remove the life policy from the Term & Endowment screen so as not to double-account for the payout, given that combined policies will ordinarily pay-out on a 'first event' basis, only. Also, move the premium, which was once paid via the life cover, over to the CI policy, in the Protection > Critical Illness screen. All of this needs only to be done in your CI pay-out scenario, and only in cases where the term and CI cover are linked.
To view the pay-out from the CI policy, go to the Let's See charts, click the year/age in which the critical illness is scheduled. The chart legend will display. Click the “Detailed Info” link at the bottom of the chart legend.
Scroll down to the bottom of the Cash Flow tab and look under the heading “Cash Flow – Not Displayed on Chart”.
Pay-outs can also be seen on the Protection tab.