Chapter 28 of 32 · Protect
Life Insurance: family and premiums
Life Insurance helps you understand what protecting your family would cost. You add each person you want to cover and Winston estimates the yearly premium for two kinds of permanent life insurance: Indexed Universal Life (IUL), whose cash value grows with a stock index such as the S&P 500 within a cap and a floor, and Universal Life (UL), which credits a steadier declared rate. These are estimates for learning and planning; a licensed partner handles real quotes and policies.
How it works
What you can do here
- Add family members with age, sex, tobacco use, health class, coverage and policy type
- See each person's estimated annual premium and the family total
- Set the IUL index strategy: guaranteed minimum, cap, participation rate and crediting period
- See hypothetical crediting rates from S&P 500 history, by percentile
- Choose which rate to use for the family estimates
- Hand off to a licensed IUL partner
1. Adding your family
- 1
Open Life Insurance
In the Protect group.
- 2
Press Add a family member
Enter their name, relationship (spouse, child…), and birth year so Winston knows their age.
- 3
Health details
Sex (leave blank for a blended estimate), Tobacco or Non-tobacco, and health class. Better health means a lower premium.
- 4
Coverage and policy
The death benefit (up to $3,000,000) and the policy type: IUL or UL.
- 5
Save
Press Add family member. Repeat for everyone you want to cover.
2. Setting the IUL strategy
If anyone has an IUL policy, the Strategy Details answer the questions an agent would ask.
- 1
Index strategy
Usually Single Index with S&P 500.
- 2
Guaranteed minimum
The floor: the lowest rate credited in a bad year, often 0%.
- 3
Cap
The most the policy can be credited in a good year.
- 4
Participation rate
The share of the index's gain the policy is credited, up to the cap.
- 5
Crediting period and style
For example one-year point-to-point.
3. Choosing a planning rate
- 1
Set when to begin
Under Presentation Details, choose the begin month and year, and the age to fund each policy to.
- 2
Read the history
Hypothetical Percentile Rates for Rolling Periods shows what the strategy would have credited over past periods, from weak (low percentile) to strong (high percentile).
- 3
Pick a rate
Choose a rate and press Use this rate for the family premium estimates. A middle percentile is a sensible starting point.
4. Reading the family estimates
- 1
Each person's premium
Family Premium Estimates shows the estimated annual premium for each person and policy type.
- 2
Year 1 cost per premium dollar
How much of the first year's premium goes to policy costs.
- 3
Talk to a professional
At the bottom, the partner card starts a handoff to Winston's licensed IUL partner. Winston qualifies the lead and hands off; he doesn't sell or bind insurance.
Estimates use 2017 CSO mortality tables and Winston's illustrative policy charges. Real premiums need underwriting and a carrier illustration.
Try it yourself
Doing is the fastest way to learn. Open the tab and try these:
- Add yourself and one family member, then compare their IUL and UL premiums.
Common questions
What's the difference between IUL and UL?
Both are permanent life insurance with cash value. IUL's growth follows a stock index within a cap and floor; UL credits a declared rate that changes less.