Insurance Coverage Scenarios

• Your clients' existing insurance policies may be insufficient to cover their goals, inadequately organized, or exceed their needs.
  • Use this page to recommend additional insurance or make changes to existing insurance policies.

• This page displays all insurance policies defined in the selected plan scenario. This includes policies entered in the current plan, new policies added on this page, and policies created by making additional recommendations from the insurance goal pages (Survivor Income Scenarios, Disability Income Scenarios, and Long-term Care Scenarios).
• The insurance goal pages, on the other hand, display your recommendations for meeting your clients' insurance goals.
  • When you modify your clients' insurance goal(s) via the Scenario Manager new policies will be created on this page automatically.
    For example, modifying the Death Benefit and/or Premium fields for the Survivor Income goal in the Scenario Manager will create a new life insurance policy on this page.

• The Scenario Manager reflects the information entered in the clients' current plan. To override this information with scenario-specific assumptions and strategies select the Override option for the appropriate item.
• The Override option will appear in one of two ways in the Scenario Manager:
  • As an unlabeled check box beside a disabled field: .
  • As a labeled check box: .
• Once you have selected Override, the relevant fields will become editable.
• Clearing the Override option will undo any changes you have made and revert information back to match the Current Plan scenario.

From the Life Insurance subtab, follow these steps to edit an existing life insurance policy:

1. Select Override for the policy you want to modify.
2. Replace existing data with new values.
   • You can make changes to the Insured, Policy Type, Benefit, Beneficiary, and Premium fields for the policy.
3. To add further modifications to the policy, select .
4. From the Life Insurance Details dialog box you can:
   • Make changes to the Policy Owner and Cost Basis.
   • Specify a new destination for residual proceeds using the Direct Residual Proceeds To menu.
     Note: If you select an account from this menu the Account Details button becomes available. For more information on entering account details, see the Accounts Help page.
   • Re-define the Cease Coverage date. You can specify an age using the At Age field—or—you can use a date or event using the On Date field.
   • You can modify premium information including the Payer, Amount, Frequency, Cease Premiums date, and whether or not the premiums are Waived at Disability.
5. If applicable, you can enter information for any Variable Subaccounts.
   • If the cash surrender value is paid over and above the death benefit, select CSV Payable with Death Benefit.
   • Enter the Valuation Date and General Account Market Value for the general account.
   • Enter information for all subaccounts. Use Add Variable Subaccount to enter additional subaccounts.
     • For more information on account entry, see the Create and Manage Accounts Help page.

6. By default, NaviPlan calculates the premium schedule, future values of death benefits, and prospective cash surrender value for an insurance policy each year.
   However, if you wish, you can make changes to NaviPlan's calculated values.

   • From the Future Values subtab, select Modify the Calculated Values and enter new data in the appropriate fields.
     OR
     You can use the Fill Values section to quickly populate fields in the Future Benefits section. From the Fill Values section, click Clear Column Values, enter data for all relevant fields, then click Fill. The selected column populates with data per your specifications.
   • You can repeat these steps for each period shown at the bottom of the Future Benefits section, select each link to view and/or modify calculated values for that period.

7. When you are satisfied with these options, click OK.

Note: For information on life insurance policies, see the Insurance Coverage Help page.

From the Disability Insurance subtab, follow these steps to edit an existing disability insurance policy:

1. Select Override for the policy you want to modify.
2. Replace existing data with new values.
   • You can make changes to the Insured, Policy Type, Benefit, and Premium fields for the policy.
3. To add further modifications to the policy, select .
4. From the Disability Insurance Details dialog box you can:
   • Specify the Company and Policy Number.
   • Define the Benefit Amount as either a % of Salary or as a Flat Dollar amount. Then, specify the Benefit Frequency and whether or not the benefit is a Taxable Benefit.
   • Define the Maximum Indexed Benefit as a Dollar Amount or as a calculated value using the Calculated As field. Then define the Waiting Period, the Benefits Period, and whether or not benefits are Offset by Social Security.
   • You can modify premium information including the Payer, Amount, Frequency, and the Cease Premiums date.
     • Use the Infl and +/- Add'l fields to indicate that the Premiums are indexed for inflation and/or any other value.
5. When you are satisfied with these options, click OK.

Note: For information on life insurance policies, see the Insurance Coverage Help page.

From the Long-term Care Insurance subtab, follow these steps to edit an existing long-term care insurance policy:

1. Select Override for the policy you want to modify.
2. Replace existing data with new values.
   • You can make changes to the Insured, Benefit, and Premium fields for the policy.
3. To add further modifications to the policy, select .
4. From the Long-term Care Insurance Details dialog box you can:
   • Specify the Company, Policy Number, and the Effective Date for the policy.
   • Define Benefits Payable Information including the Amount and Frequency for the benefits.
     Furthermore, you can use the appropriate Infl and +/- Add'l fields to model the effects of inflation (along with any other indexation) on the benefit for the pre-LTC and LTC period.
   • Define the Waiting Period and Benefit Period.
   • You can modify premium information including the Payer, Amount, Frequency, and the Cease Premiums date.
     • Use the Infl and +/- Add'l fields to indicate that the Premiums are indexed for inflation and/or any other value.
5. When you are satisfied with these options, click OK.

Note: For information on life insurance policies, see the Insurance Coverage Help page.

• Identifies the asset as community property.
• Most property acquired by a married couple residing in a community property state is considered to be owned equally by both parties.
• This check box is not available if the client’s or co-client’s tax filing status is single.