After an application is submitted to Underwriting, if a change is made that would affect the premium for the client, the new premium will need to be calculated.
For example, if an application is submitted for a Level 20 for a Male, age 48, at Standard Non-Tobacco and after review is then offered at a Table B, the new premium can be calculated using the Desktop or Online Illustration System.
The Online Illustration System can be accessed by navigating to www.ikclife.com and logging in. If you do not have a login, you can create one by clicking on 'Create User.'
Once you have logged in, click on 'Illustration System' within the 'New Business Illustrations' tab.
This will bring up the Online Illustration System. To calculate the new premium, enter in the information for the client:
Since the policy is being offered at Table B, we will need to add in the table rating. We will add this as a '2' in the box highlighted below. A table rating of '1' corresponds to a Table A, a table rating of '2' corresponds to a Table B, and so on. Entering in the table rating for the Level 20 will automatically display the new premium in the premium box on the left.
While term quotes automatically display the premium upon entering in the client information, Universal Life quotes give you the ability to calculate the premium since the premium is flexible with these type of products.
Let's take the same information used before, but assume the client submitted a Supernova Application and, after review, the policy was being offered at Table B.
To calculate the new premium, enter in the information for the client, including the Table B rating. Since premium is flexible with the Supernova, we will need to calculate the new target premium. To do this, click on the 'C' that is highlighted below.
When the box comes up, click on 'From Specified Amount' and click the 'C' next to 'Target.' This will display the new Target Premium based on a Table B rating. Since premium is flexible, the premium can then be adjusted accordingly so that the policy performs at the level desired.
Illustration Development Team
1-800-572-2467 x8162
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