How to Analyze a Large Portfolio of Life Insurance

The Life Insurance Values tool is an invaluable way to showcase life insurance illustrations, including ones already in force. This means it's ideal for using in an annual review with a client who wants to see how their policies are doing, and maybe even what else they can do in their financial life.

Life Values, however, can only show up to 6 permanent insurance policies at a time, as well as 4 term insurance policies. So what do you do when you have a long-term client that has over 6 permanent life insurance policies? Fortunately, there's a way to get a big-picture viewpoint, using the Summary tab.

Analyze a large life insurance portfolio

Creating a Summary in Life Insurance Values

If you have a client with many life insurance policies, what you'll want to do is input as many of them as you can into Life Insurance Values. You do this by copying the premium column in your illustration and then pasting it into the premium column. Then you copy the non-guaranteed cash value and death benefit columns, pasting the values into their respective columns. If the policy is in force, which it should be in an annual review, be sure to click the “In Force” button and indicate the existing cash value and the anniversary date of the policy.

Do this for every policy, then go to the Summary tab. Here, you can indicate which policies you'd like to include in the Summary. Once you do this, you're going to copy and paste all the columns—premium, cash value, and death benefit—into PLI1. Then you can go ahead and clear the data from the other PLI tabs. You can do this quickly by selecting “Clear This Illustration” on each of the PLI windows 2-6.

Below is an example of what the Summary could look like. Be sure to change the Client Age, Current Policy Year to make your record more accurate. You'll also want to update the description so that you know exactly what you're looking at. We've written an example of this in the Summary below, yet you'll also want to do this when you transfer it over to the PLI1 tab.

It's really important to take good notation of the policies included in each Summary so that you get accurate information from your clients. After you move your Summary to PL1, you can go ahead and add more illustrations to PLI2-PLI6. Then you can go back to Summary and include the tabs that you want.

Keep doing this until you're done with the client's policies, go back to Summary, and include all the PLI tabs you now have to see the full picture.

Note that the IRR column will be a bit skewed since you can't account for the individual anniversary dates of each policy this way. However, it'll give your client an accurate picture of the most important part: Premiums, Cash Value, and Death Benefit. This can then be moved into Asset Flow so that you can go over any other assets the client may have, and look at new strategies together.

Want to learn how to use Asset Flow more effectively for your clients? Attend an exclusive Asset Flow Master Class to get 2 days of hands-on

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