Plus premium

The Situation:

You're illustrating participating insurance and you want to add Plus Premium to increase illustrated values or to reduce the offset year.

How to use Plus Premium

Plus Premium is available with Par Protector II and Par Accumulator II with the 20 Pay and Life Pay premium options (the tax limits do not allow for any Plus premium over and above the premium required for the 10 Pay option or with Par Accelerator).

  • Within the Coverage Details section, select the check box to include Plus premium.
  • Select how you want to enter the amount of Plus premium. The default is to use the Maximum amount which is automatically calculated by the system. Or you can change the Type to Specify an amount if you wish. The system shows you the Minimum and Maximum acceptable values based on the client and coverage details.
  • Select the duration for Plus premium. The default duration is until Offset but you can change the duration to a Specified year if you wish.

The following example shows a scenario with Maximum Plus premium until Offset.

Aside from maximum Plus premium paid till offset, there are a few other common variations as described below.

Plus premium along with a coverage solve:

If you have a target total premium, you can add Plus premium and the system will adjust the coverage solve accordingly. After selecting Solve by payment, you can choose either a Specified amount of Plus premium or select Maximum Plus premium.

TIP: This solve can also be done with Enhanced insurance dividend option. In this case the system solves for the right amount of Base insurance based on the Plus premium amount and then adds the maximum Enhanced amount and.

Extended Plus premium with the 20 Pay premium option:

Your client may like the guaranteed paid up nature of the 20 Pay premium option but would like to see projected values if they chose to continue the Plus premiums after 20 years. No problem. Just select 20 Pay as the Premium option and then the Maximum or a Specified amount of Plus premium for the duration they wish to see.