Life Insurance

[Kathleen Reynolds]

#3681

Please see below image for details on section inputs.

• Premiums: Start Year: Enter the year the premiums start.
• Premiums: End Year: Enter the year the premium expenses end.
• Premium Amount: Enter the annual expense for the premiums. Note, this premium WILL be treated as an expense, and should not be added to the ‘Expense’ items. If this is done, then the expense will be double counted.
• Death Benefit Amount: Enter the amount of Death Benefit. This amount will be dumped into the Taxable Assets fund upon death of the owner of the policy.
• Apply Inflation on: You can select if inflation should be applied to Premiums, Death Benefits, Both, or None. The inflation rate used is reflected on the Details tab.

Assumptions
The premiums are paid from the taxable asset first (or RMDs for the year). If the expense is not fully funded by taxable asset, it will deplete the remaining assets as needed (Roth first, followed by the IRAs).

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