In this video, walk through how you can use the Voyan AdviserGo software to model Term Life and Disability insurance to help your clients in the Canadian market.
Transcript
In today’s webinar, we’ll be modeling term life and disability insurance policies in the Canadian version of our software. By the end of this session, you’ll be able to:
Assess your clients’ coverage needs,
Provide customized, comprehensive advice, and
Effectively present and communicate the importance of these strategies in protecting against unexpected life events.
Scenario Overview
We’ll be working with Thomas and his family—a couple in their mid-40s with a young child. We’ll explore two key scenarios:
Term Life Insurance – ensuring there is enough coverage to financially protect the spouse and child in the event of an untimely death.
Disability Insurance – exploring protection in case one of them becomes unable to work for an extended period.
Modeling Term Life Insurance
Let’s start with the term life insurance scenario.
From the What-If section on the right-hand side, I’ll create a new scenario called “Term Life Recommendations.” You’ll notice the plan name update in the top-right corner. Remember, you can switch back and forth between the base plan and what-if scenarios by clicking on the name.
Next, I’ll move to the Insights section and run a Life Needs Insight. This simulates mortalities in year two of the plan to show us the financial picture if one spouse were to pass away unexpectedly.
The software calculates the additional coverage needed to ensure the surviving family maintains their standard of living. In this example:
Jen requires just over $1 million in additional coverage.
Jean requires just over $940,000.
Looking at Jen’s early mortality chart, the system stops her income and contributions, but maintains joint expenses. Personal expenses are dropped, and all assets, pensions, and investments transfer to the surviving spouse. A death benefit is also applied.
To address this, I’ll add two Term Life policies from the dashboard:
Jen’s Policy: 20-year term, ~$1 million benefit, $75 monthly premium. Beneficiary: Jean.
Jean’s Policy: 20-year term, ~$1 million benefit, $75 monthly premium. Beneficiary: Jen.
Once these policies are added, you can re-run the Life Needs Insight and show clients how coverage addresses the potential shortfall. This is a powerful way to demonstrate the real-life impact of proper insurance planning.
Modeling Disability Insurance
Now, let’s look at disability insurance needs.
I’ll switch back to the base plan and add a Disability Event from the Timeline:
Event: Jen becomes disabled at age 50
Duration: 3 years (until age 53)
When we view the results, their retirement plan drops slightly from 100% funded to 99%. While not catastrophic, we can see that during the disability event, they must draw from non-registered savings—about $50,000 the first year, and just over $40,000 in the next two years. This creates a small shortfall later in retirement.
To address this, I’ll create a new what-if scenario called “Disability Recommendations.”
From the Insurance tab, I’ll add:
Jen’s Disability Policy: $50,000 coverage, $250 premium, lasting the recommended duration.
When we compare plans:
In the base plan, expenses are covered by drawing from non-registered accounts.
In the Disability Recommendations plan, expenses are covered by the insurance policy instead, preserving investments.
By the end of the plan, assets differ significantly:
With disability coverage, they retain $1.2 million.
Without coverage, assets are fully depleted.
This visual clearly demonstrates the value of a disability policy in safeguarding long-term financial health.
Wrap-Up
I hope this demonstration was helpful in showing how to model term life and disability insurance in Voyant to protect your clients’ financial well-being.
If you have questions or want me to review a client plan with you, feel free to reach out at support@planwithvoyant.com. You can also share a plan directly: click your client’s name in the top-right, select Request Support, enter your question, and choose Share Client Access. I’d be happy to arrange a one-on-one session to support you or help you prepare for a client meeting.