Taxevity

Here are the general instructions to guide the team preparing insurance proposals. The goal is to provide better performance for the clients while using conservative assumptions.

Inputs

• client names: John Client and Jane Client (unless actual names provided)
• health: standard (not preferred)
• tobacco: nonsmoker
• annual deposits
• investments
  • realization rate for capital gains of 25%

Illustration output

• show all years
• export all columns to an Excel spreadsheet

Company-specific

Industrial Alliance

1. In the illustration output, suppress the Investor Profile page
2. Investment Bonus
   • use no bonus (Low Fees option)
3. Alternative Investment
   • use a realization rate on capital gains of 25% (the default of 100% makes the tax sheltered growth inside insurance look better than in real life)
4. Shuttle Account
   • lowest possible interest rate (ideally 0%)
   • results after tax

Wealth Maximizer

• use Superior Minimization (not the Face+Fund with Wealth Maximizer option, which inflates the death benefit and insurance charges)
• When running a Wealth Maximizer, set the minimum death benefit to the premiums (e.g., for deposits of $200,000/yr for 3 years, set the floor to $600,000)

Level Cost of Insurance

• use the option with surrender charges (and lower cost of insurance)

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