Though the calculators are the meat of the Truth Concepts software, the tools included are an invaluable time-saving resource. In calculators such as Funding, Borrowing, Diversification, Accumulation, Distribution, and Asset Flow, the Life Insurance Values tool cuts the workload significantly. Rather than continually copying & pasting life insurance values, you can import life insurance illustrations directly into your calculator from previously stored data. So where does that data come from? Fortunately, there’s no initial copying & pasting at all. Instead, you can import the information straight from an insurance illustrationRead More
Category: Life Insurance Values
One week earlier….. “Hello, John how is your day going?” I initially said when I called. “Just fine, thanks,” John responded. “I know why you are calling; it has been a few years since we have been able to get together and we need to speak with you because we have been having some big changes in our family. Jane and I have been meaning to get in touch with you each time we get your email or card in the mail.” “I never want to be a pest, butRead More
You make a Summary inside the Life Insurance Values tool. First copy and paste each enforce policy (go here to see instructions: https://truthconcepts.com/513/) illustration into ONE Life Insurance Values sheet. There is room for 6 whole life and 4 term policies and if you need more, you can make a “Summary of Summaries”. You’ll want to make sure you make good “descriptions” inside the box labeled same so you know which policy is where. Then when you click the Summary button, you’ll get to choose between the 6 PLI buttonsRead More
As you know, in the early months and years of a whole life policy, the PUAs are more efficient than the base premium as far as generating cash value for the policy. While the base premium alone can take years to generate a positive internal rate of return where cash value is concerned, the PUAs are converted to cash value right away, which increases the efficiency of the policy overall.
However, after 5-7 years of funding a whole life policy, the impact of the PUAs appears to lessen. Illustrations of a policy funded with maximum PUAs vs. no PUAs at all show that, several years into the policy, the PUAs no longer have a dramatic affect on the internal rate of return of the policy.Read More
How do I explain the difference between Total IRR and Annual ROR on Life Values? The Total Internal Rate of Return is based on the cash value (and we also have one based on the death benefit) and it starts very low and increases over time. It usually shows a negative 100% first year because we have zero cash value in the first year but the IRR appreciates and increases over time. It is however, weighed down by the early years as IRR is a “cumulative” column as opposedRead More
Life Insurance Loans, In Advance or in Arrears? The Whole Truth An issue that is often incorrectly talked about as an advantage, is the idea that the insurance company charges a lower interest when interest is paid up front (in advance) versus at the end (in arrears). The whole truth is that there is a different factor (not a different interest rate) used to calculate the amount of up front interest that has to be paid. This factor can be calculated by reducing the Annual Interest Rate by theRead More