Life Needs Insight Transcript
Hello, and welcome to today’s AdviserGo training.
Today, we’re going to review the Life Needs Insight in Voyant.
For this demo, we’re working with a sample plan that includes a husband and wife, Martha and John, along with their children. Both clients are currently working, and both are contributing to retirement accounts.
In this example, they do not currently have any life insurance modeled in the plan.
We’ll use the Life Needs Insight to help estimate how much life insurance may be needed in the event of an unexpected fatality.
To do this, we’ll go to the Insights tab and select Life Needs. Then we’ll click Get Started.
In this plan, the software is suggesting that Martha may want to consider approximately $2.7 million in life insurance. For John, the software is suggesting he may want to consider approximately $3.4 million in additional life insurance.
Now, let’s take a closer look at what the software is doing behind the scenes.
We’re currently looking at the Chart View. The software has inserted a simulated mortality event for Martha in the second year of the plan. At that point, Martha’s income is removed from the plan, which causes a shortfall to appear later in the projection.
To better understand the calculation, let’s switch into Year View.
Now that we’re in Year View, we can review the plan year by year and see how the client’s cash flow is affected after the mortality event.
If we move into the second year of the timeline and review the Cash Flow section, we can see that Martha’s employment income has stopped. This reflects the simulated death event created by the insight.
We can also review the Investments section to see how the remaining assets are being used to help cover the family’s expenses over time.
In this example, the investments continue supporting the plan well into the surviving spouse’s 80s. However, around age 81, the plan begins to show a shortfall because there are no longer enough investment assets or pension income available to cover the remaining expenses.
This is why the Life Needs Insight can be helpful. It shows how the plan may be affected if one spouse were to pass away unexpectedly, and it helps estimate the amount of life insurance that may be needed to keep the surviving spouse and household financially supported.
You can also run this insight for either spouse to compare the impact of each mortality scenario.
As always, if you have questions while working in a plan, you can request support directly from within the client case. Click on the client’s name in the top-right corner, then select Request Support and type in your question.
Thanks for watching today’s training.