ARCHIVE - Endowments - Payout not shown on the cash flow chart **Voyant Adviser, UK and Ireland**

Q - My client has an endowment that is set to mature in 5 years but when I check the Let's See cash flow chart, I don't see a spike indicating a cash inflow in the year of maturity. Why is that?

A - 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.

Keep in mind that the payout will occur in the year following the end of the term. For example, an endowment with 1 year remaining in the term will pay out next year, in the second year of the plan. An endowment with five years remaining in the term will pay out in the 6th year of the plan.

To view these payouts, click the link to the "Detailed Info" link on the chart legend, which appears when you click the bars of the charts.

Scroll down to the bottom of the Cash Flow tab and look under the heading "Cash Flow - Not Displayed on Chart".

Payouts can also be seen on the Protection tab of the chart details panel.

Note that any portion of the endowment that is being used to fulfill expenses in the year of payout will be shown in the cash flow. This is easiest seen if you click the Detailed link in the panel at the bottom of the chart. You should see an Insurance category if any portion is being used for expense fulfillment. This split between payout as surplus inflow and any portion used for expense fulfillment will be shown when clicking on the bar/year of the chart when payout is to occur. The chart legend will display. Click the Detailed Info link. The chart details panel will display. Details of the inflow will be shown on the Cash Flow tab.

What Happens to the Funds Received from the Endowment? 

The software's usual cash flow rules for lump sum inflows applies to payouts from endowments or for that matter lump sum payouts from any protection policy. 

The cash, if not spent or deposited into a specific account, will be deposited to the recipient's default cash account (e.g. John's Cash). You will see these deposited funds on the Investments tab of the Let's See chart's Detailed Info. Deposited funds will be shown next to the default cash account in the Contributions / Unscheduled column. 

Funds deposited to the default cash account will serve in the future as ready cash, which will always be the software's first stop when topping up income to meet expenses after regular income is exhausted.