by Carolyn Rothwell on September 19, 2013

Tech Tip: Life Insurance Cash Value in Easy Money and Golden Years


LifeInsuranceSummary

The Net Worth Report from Golden Years (shown to the right) includes the clients life insurance cash value.  For this report, an insurance policy entered in TOTAL Planning Suite for the client who is currently retired.  The face amount is set as $1,000,000 and there is no cash value entered on the policy.  

Can you guess the question advisors call tech support to ask?  If you have a good guess for the question, do you know the answer?  Find out below!
 

Advisor Question: “Why is the life insurance cash value going up?  I entered zero.  I didn’t enter any increase rate or future changes.”

Tech Support Reponses:  “Its magic.”  Just joking – you know that’s not our style!  Our reports are equipped with an audit trail so advisors can easily breakdown values.  Every once in a while you will run into items that do not have audit trails.  If you can’t resolve your question, don’t dig around long find the answer unsupported.  Simply call tech support to get a quick explanation.    

Actual Tech Support Reponses:  The program has an automatic calculation built-in to increase the life insurance policy cash value to meet the face amount by the clients age 100.  Most projections are not carried out until the clients age 100, making the built-in logic hard to distinguish. 

Advisor Follow Up Question:  What if I don’t want the cash value to increase?

Tech Support Reponses:  To prevent the program from automatically increasing the cash value, go to the worksheet tab on the insurance data entry to control the cash value.  If you want to keep the cash value as zero, enter the clients retirement age, a cash value of zero, followed by age 100 with the cash value of 0.  This will ensure the program will not build a cash value automatically.  

 

Did you know a cloud-based version of TOTAL Planning Suite is in beta testing right now? Interested in seeing TOTAL Online's easiler to learn, more streamlined input?  Find out more and become a beta tester. Learn more by going to moneytree.com/beta

TOTALONlineBeta

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance of financial planning.