L95: One-time Premium Payment

One call we receive frequently is in regards to setting up a one-time premium payment for the L95.  This is actually a very simple illustration to set up! 

Simply log into http://www.ikclife.com/.

Once you have logged in, click on 'Illustration System'.  Proceed to enter in the information for the illustration. 

In the 'Prepaid Premiums' box you will enter the number of premiums you want to prepay.

 

 For the L95, the insured pays premiums until the age of 95.  The calculation to determine how many premiums the insured would need to prepay if they want to only make one premium payment would be: 94 - the insured's age. 

For example, if you have a 35 year old you would enter 59 (94-35).  This will give you the one-time premium the insured would need to pay.

When you illustrate it, you will see that in year 1 the contract premium is the one-time premium amount and after that, it is showing $0.00 for the premium amount.

 

It's as simple as that!  If you have any questions or need help setting up an illustration with a one-time premium, don't hesitate to call!

The Illustration Development Team

1-800-572-2467 x8162

Removing a Rider on an Inforce Illustration

If you are the assigned agent, the policy has been in force for at least one year, the policy is above the minimum specified amount, and the product type is in our list of illustratable inforce products, then the ability to run an inforce illustration is at your fingertips!

To take advantage of this tool, navigate to www.ikclife.com and log in.  Note: if you do not yet have a login set up, you can create one by clicking on ‘Create User.’

 

Once you have logged in, click on the ‘Inforce Illustrations’ tab and click on ‘Run Inforce Illustrations.’

Type in the policy number you are trying to access and click ‘OK.’

When the policy summary comes up, if you would like to make hypothetical changes and run inforce illustrations, click on ‘View Illustration’ at the bottom of the page.  You will then be directed to the input screen.

For example, let’s assume we want to make the following changes to an inforce policy for ‘Bob.’  Bob has requested that we do the following:

1.     Change the Specified Amount from $350,000  to $300,000

2.     Remove the $10,000 OI

3.     Solve for the premium to reach age 95

We can use the inforce illustration system to make these hypothetical changes to see how the policy would perform if these changes were actually made.

1.     Click on the change box next to Specified Amount and type in the new amount.

2.     Select the OI rider from the Active Riders dropdown.  To remove the rider, checkmark the box that says ‘Cease Rider Now.’  To exit out of the Rider Information and continue making changes, click the ‘X.’

3.     To solve for the premium to reach age 95 with these hypothetical changes, click on the ‘PTY’ button.

 

4.     Type in a Pay Through Year, Target Cash Value, and Achieve at End of Year value.  Choose current or guaranteed mortality.  Finally, click ‘Calc.’

 

This will calculate the modal premium that would need to be paid in order for the policy to last until age 95.

You can then run the inforce illustration by clicking on the magnifying glass  at the top of the screen to view and show the client.

We have provided you with many options when running inforce illustrations to help you meet the need of your existing clients, so please feel free to call us with your questions. We’d be happy to spend some one-on-one time helping you walk through any inforce requests you receive.

The Illustration Development Team

1-800-572-2467 x8162

Illustrationhelp@kclife.com