Enhanced Insurance dividend option

The Situation:

You’ve done a needs analysis and know the amount of permanent insurance coverage your client is looking for. You’re looking at participating insurance and you are considering what dividend option to select.

How to use the Enhanced Insurance dividend option

  • You enter the total permanent insurance you want to illustrate in the Coverage amount field.
  • For the Dividend Option, select Enhanced Insurance.
  • When you choose Enhanced Insurance, the illustration allows you to adjust the Base insurance amount and Enhanced amount split based on the desired total Coverage amount.

The following example shows a scenario with a Coverage amount of $250,000 with Enhanced Insurance. You can change the Enhanced amount as long as you remain within the Minimum and Maximum limits as displayed on screen. If you change the Enhanced amount, the Base insurance amount is automatically updated. Or, you could change the Base insurance amount and the Enhanced amount will be updated automatically. If you input a value outside of the acceptable range, the system automatically updates the amount to the closest acceptable amount.

What if:

What if you want to force the Base insurance amount to a specific amount and you want to add the maximum Enhanced amount to that base amount. How would you do this in Sun Life Illustrations without a painful trial and error method?

We’ll walk through the process below assuming that you want $250,000 of Base insurance and then want to add the maximum enhancement on top. Here’s how to do it in just two easy steps.

Step 1: Enter a Coverage amount of $250,000, choose Paid Up Additional Insurance (PUA) as the dividend option and click Refresh.

TIP: Make sure you have selected any optional benefits you want to add because in this step we are determining the total cost.

Step 2: Note from the above screen shot that the premium for $250,000 of base coverage is $559.64 per month. Now select Solve by payment, enter a payment amount of $559.64 per month, select Enhanced insurance dividend option and then click Refresh again.

It results in a total amount of coverage including enhancement of $400,876 and you’re done.