Adjusting the Interest Rate on an Inforce VUL

Interested in looking at a client's inforce variable universal life policy, but not sure how to adjust the interest rate?  Read on to see how this can be completed in a few simple steps.

 

 

To begin log in at www.ikclife.com.  If you don't have a login, you can create one by clicking on 'Create User.'

 

 

 

 

To access the policy, click on 'Run Inforce Illustrations' within the Inforce Illustrations tab.

 

 

 

 

Next, type in the policy number for your client and click 'Ok' to bring up the policy.  Don't forget to take note of the parameters necessary to pull up an inforce policy.

 

 

 

 

Clicking 'Ok' will pull up a summary of the policy.  Click on 'View Illustration' to view additional information for the policy. 

 

 

 

 

To change the interest rate on this inforce variable universal life policy, click on the wrench at the top.

 

 

 

 

 

Click on the 'Inforce Rates' tab and choose which product you would like to change the interest rate on by clicking on the Product Name.

 

 

 

 

 

This will bring up boxes at the bottom of the screen that will allow you to make changes.  Once you have made your changes, click 'Ok.'

 

 

 

 

 

When you run the illustration, you will see that the new interest rate(s) you chose are being displayed.

 

 

 

Please feel free to contact us with any questions you may have.

 

 

Illustration Development Team

1-800-572-2467 x8162

illustrationhelp@kclife.com

 

New Version Release Page

The Illustration Development Team has implemented a new tool to help you stay up to date on the latest news pertaining to the illustration system.  Now when you log on to www.iKCLife.com there will be a 'Version Release' link on the 'Agent Home' page.  You can see where the link is located in the image below:

The version release page will include information about the most recent additions and improvements to both the online illustration system and the desktop illustration system.  You'll notice a version number below the date on the desktop version release information.  The version number is highlighted by the red box below:

This version number will always be the latest version of the KCL Illustration System.  So be sure to check it regularly in order to stay current with the newest features and ensure that you have the latest updates available!  Click here to be redirected to the new version release page now and see what features we've been working on.

Triple Option Term Wizard

The Triple Option Term Wizard can now be used without use of the Illustration System!  To access this Wizard, navigate to www.ikclife.com.  Once you have logged in, click on Agent Home and click on the Wizards tab.

Note: if you don't have a login, you can get one up by navigating to www.ikclife.com and clicking on the icon highlighted below:

Once the Triple Option Term Wizard comes up, simply type in the information and hit "Submit."  This will automatically generate the Triple Option Term Detail and it will be displayed on the screen within seconds.

The Illustration Development Team
illustrationhelp@kclife.com

Online New Business Illustration System

I wanted to take some time to spread awareness about our Online New Business Illustration System.  It is a great tool that allows you to quote new business illustrations in the same manner our desktop version allows, however, the Online New Business Illustration System doesn't require a download, is always current, and never requires an update!

To access the Online New Business Illustration System, navigate to www.ikclife.com and log in.  Note: if you do not have a login, you can create one by clicking here: 

After logging in, click on "Illustration System" to run New Business quotes!

~Buttons~

Here is a quick breakdown of the buttons you will see after logging in and what the function of each is.

 

Clicking this button takes you back to the main input screen.

 

Clicking this button will start a new illustration.

 

Clicking this button will allow you to open up any illustration you have run in the past and saved.

 

Clicking on this button will save the illustration you are working on so you can open it up and make changes to the inputs at a later date if necessary.

 

Clicking on this button will allow you to add an additional illustration on to the one you are currently working on.  This works well when you are trying illustrate multiple products for the same client.

 

Clicking on this button will delete the illustration you are currently working on.

 

Clicking on this button will add on the appropriate application and forms to your illustration

based on the product and state you have selected.

 

Clicking on this button will run the illustration so you can view and print it if necessary.

 

Clicking on this button will launch a grid that supplies year, premium, and specified amount detail.

 

Clicking on this button when running a Variable Universal Life product will provide fund allocation information.

 

Clicking on this button will allow you to make changes to your Agent information, which will show up on proposals.

 

Clicking on this button will allow you to make changes to interest rates, printer defaults, product

defaults, and client defaults.

 

Clicking on this button will open up the product guide.

~Initial Setup~

Choose the product you would like to quote from the dropdown, type in any relevent client information, and click "OK" when finished.

Adjust the Issue State if needed, select the Gender, type in the Date of Birth, select the Risk Class, and type in a new Specified Amount if necessary.

At this time you can also choose to add on any applicable riders you would like to illustrate.

~Calculating the Premium~

When running Term and Whole Life illustrations, the premium will automatically be displayed.  When running Universal Life and Variable Universal Life illustrations, the premium will need to be calculated.  To calculate the premium:

First, click on the "C" next to premium to bring up the premium calculator.

Clicking on the "C" will bring up the premium calculator box.  Click on "From Specified Amount" and you will then be able to select what type of premium you want to look at.  Clicking on the "C" to the right of the modal premium boxes will display that particular premium.  Once you are satisifed with the premium you want to use, click the radio button on the left-hand side to make the selection.

Once you have made your selection, to exit out of the premium calculator, click on the "X" and the premium calculator will then insert the premium you chose into the Premium Amount box.

 

You may also choose to enter any premium you would like into the Premium Amount box.  So long as it meets the minimum requirement, the premium you entered will be displayed when the illustration is run.

One other method available for calculating the premium on some of our Variable Universal Life and Universal Life products, is the PTY button, which can be used to calculate a premium to carry the policy to a certain age/year.

To figure the PTY premium, click on the PTY button.

Once you click on the PTY button a Premium Calculation box will come up.  Type in the Pay Through Year, Target Cash Value, and Achieved at End of Year values you would like to see.  Next, select Current or Guaranteed mortality from the dropdown.  Once you are finished, click on the small "X" at the top right.  This will calculate the premium based on your entries and inset it into the premium text box.

~Adding Application/Forms~
Once you are satisifed with your entries, you can choose to add on the application and forms to the illustration.  To do so, simply click on  at the top.  Based on your entries, clicking on this button will add any applicable application/forms to your illustration that can be printed when the illustration is run.  You can also choose to fill in application information or leave it blank.

~Running the Illustration~

Once you are satisifed with all of your entries, to run the illustration, simply click on  at the top.  This will run the illustration and allow you to print it out to show the client.

~Saving the Illustration~

An illustration can be saved in one of two ways:

1. At any point while you are on the input screen, you can click on the  button and this will save your progress.  Then, if you click on the  button at any time, you can open up your saved illustration and make modifications to the inputs if necessary.

2. Once you click on the  button and run the illustration, you will see a "Save" button.  Clicking on this button wil save the output as pdf that you could print to show the client or keep for future reference.

If you have any questions about these or any other features associated with the Online New Business Illustration System, please feel free to contact me.  I would be happy to assist you.

Jill Parsons
Illustration Development Team
illustrationhelp@kclife.com

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