TEMP Zendesk
EXAMPLE: Male 45, $10K lifetime pay, same IUL run at 6%, 5%, 4%, and 3%
Stress testing is an extremely common practice scenario when showing IULs and other index linked products, and the concept shows extremely well in Ensight Presentations.
1. Keep the following pages visible in Ensight Presentations:
- Spreadsheet
- Cumulative Premium (on Non-Guaranteed tab)
- Net Surrender Value (on Non-Guaranteed tab)
- Net Surrender IRR (on Non-Guaranteed tab)
- Death Benefit Value (on Non-Guaranteed tab)
- Death Benefit IRR (on Non-Guaranteed tab)
2. Add notes regarding the specific returns in the “Added notes” section on the specific plan page, as you can see below where it says “Run at 3.0%”
3. Show the spreadsheet with the following columns:
- Non-Guaranteed Cumulative Premium
- Non-Guaranteed Net Death Benefit
- Non-Guaranteed Net Surrender Value
- Non-Guaranteed Net Surrender Value IRR
We recommend showing age or year intervals to keep the presentation simpler. Here we have set our intervals to 5 years:
4. On the Cumulative Premium page, show the non-guaranteed values at a reasonable point for the evaluation of net surrender value:
5. On the Net Surrender Value page, show the non-guaranteed values at a reasonable year of evaluation of net surrender value:
6. On the Net Surrender IRR page, show the non-guaranteed net surrender IRR, at a reasonable year of evaluation of net surrender value:
7. On the Death Benefit page, show the non-guaranteed death benefit being pushed up across the different returns at year of mortality:
8. On the Death Benefit IRR page, show the respective non-guaranteed death benefit IRRs at year of mortality for the different returns:
