Life Insurance Analytics Probability Assessment of Achieving the Death Benefit of a Life Insurance Policy

Life Insurance Sustainability Analytics – LISA – adds new functionality for testing IUL and VUL life insurance policy Illustrations.

IRVINE, CA, October 10, 2023 / PRNewswire/ — Life Insurance Analytics announces that it is now possible to test for the likelihood of achieving a desired Death Benefit objective for policies that are subject to market volatility. 

From Michael Lockitch, CFA (Founder & CEO of LifeInsuranceAnalytics.com):

“We have received fantastic feedback from our clients using this new functionality to advise their corporate clients about the probability of recovering their loan made for premiums to split dollar supplemental executive plans.”

For flexible premium Universal Life insurance policies, like IUL, VUL and even GVUL, the policy value accumulation is not guaranteed, and the performance risk of the policy remains with the owner.  These policies are subject to market volatility in the methods that they accumulate value. This is important because many policy designs assume an increasing policy value that drives the Death Benefit up to the desired goal.

LISA tests for the probability of the policy sustaining to death given the premium and benefits assumed in the Illustration when tested against the volatility of the crediting assumptions and their impact on the dollar sequence of returns.  But the probability of success of the overall policy sustaining is not the whole story. Will the policy achieve the needed or desired death benefit amount? This is especially important for protection-oriented policies.

Protection-oriented policies are purchased for the assumed and desired Death Benefit for estate planning, wealth transfer, and/or the repayment of premium loans and is assumed to grow to the targeted amount by average life expectancy. So, what is the likelihood of achieving this Death Benefit objective? LISA can now tell you by analyzing the Death Benefit Success Rate:

Life Insurance Sustainability Analytics – LISA – is a powerful, easy to use online toolset that tests Variable and Indexed Universal Life policy illustrations, providing a real-world assessment of the probability of achieving (or not) the policy owner’s expectations for the policy.  Expectations like premiums, income from policy loans and death benefit amounts at critical ages cannot be tested for likely policy success or failure with just the standard industry illustration – LISA is currently the only way to obtain this policy performance risk assessment. Access LISA here: https://www.lifeinsuranceanalytics.com/

Contact 

Michael Lockitch

Mike@LifeInsuranceAnalytics.com