In this video, we walk you through how to model Life Assurance in the Voyant Global software.
Transcript:
In today’s training, we’ll be taking a look at the Life Assurance features in Voyant Global.
For this example, we’ll use a case involving Pascal and Maria Laios. They’ve come to their adviser with concerns about whether their surviving spouse would be financially secure and able to maintain their lifestyle if one of them were to pass away unexpectedly.
The first thing I want to do is understand what that scenario might look like in the current plan. To do that, we’re going to go to the Insights tab and select the Life Needs Insight, then click Get Started.
What this insight does is calculate the amount of additional life insurance needed for either spouse if one were to pass away unexpectedly.
In this example, the software is telling us that Pascal would need an additional $883,000 in life assurance coverage if he were to pass away early.
If we look at the chart, we can see the software simulating Pascal’s mortality next year. Without his earnings and contributions to pensions and investments, Maria would begin experiencing a shortfall starting at age 79.
If we click over to Maria’s mortality scenario, we can see a similar result. If Maria were to pass away at age 44, Pascal would begin experiencing a shortfall at age 78 due to the loss of her earnings and contributions.
Based on this information, we’re now going to return to the Dashboard and enter a life insurance policy into the plan.
We’ll go to the Insurance section and select Term Life.
This is just one example of how you might model life assurance in Voyant. There are many different ways to structure it depending on the recommendation you’re making for your client.
In this example, we’re going to create a personal policy and make it jointly held. I’ll switch this over and add Maria onto the policy. Then I’ll give the policy a name and enter a benefit amount of $1 million with an annual premium of $850.
For the payout type, I’m going to select First Death, and for the beneficiary, we’ll use the surviving spouse.
Now we’ll enter that into the plan.
Next, I want to create a What-If scenario where we model an early mortality event so we can demonstrate how the surviving spouse would be impacted.
We’ll go to What-If Planning and use the Change Life Expectancy option.
The first scenario I’ll model is Pascal passing away early. I’ll adjust his mortality age to 48, matching the earlier simulation.
Now we can see that the insurance payout has been applied, and Maria is no longer experiencing a shortfall in the plan.
I’ll go ahead and create this plan.
Once the plan is created, I’m going to manage the plan and rename it so it’s clear that this is the scenario where Pascal passes away early.
You can repeat this same process for Maria if you’d like to create a second What-If scenario.
For example, on the Let’s See screen, you could compare and contrast the plans side by side and demonstrate that if Pascal were to pass away early, Maria would still be able to maintain her lifestyle without experiencing a shortfall in the plan.
I hope this was helpful. If you have any questions, you can always reach out to us by clicking on your client’s name in the top-right corner and selecting Request Support.
Thanks for listening!