This tool does NOT provide an indication of which policy is a better investment. It is intended to help the client select the policy that best meets his/her needs. See the help topic Protection Component Assumptions for more details. Enter the current insurance alternative on the left. Then enter a "better alternative" on the right. The expectation is that the better alternative should have a lower annual premium. Click Calculate to compare the two scenarios both in today’s dollars and at opportunity (future value of premiums). |
No script is provided for this screen. |
Potential Benefit The potential benefit is the sum of all the monthly benefits over the years of coverage. It is assumed that you begin drawing benefits immediately after the elimination period and continue to draw them for the years of coverage. The potential benefit is calculated in a spreadsheet. Each row in the spreadsheet is a month. The benefits are paid monthly. However, the cost of living adjustment (COLA) is applied at the end of each year. Therefore, the benefits change at the start of each year (the 13th month, the 25th month, etc.). The column to the right of the benefit column accumulates the monthly benefits. The bottom value in this cumulative column is the Potential Benefit. There are columns for both the current scenario and the alternative scenario. |