Adding an Insurance Plan

Investment-linked plan

Let us use the following investment-linked plan (ILP) as an example:

• Plan name - Super Insurance
• Death payout - $3M
• Current cash value - $30k
• Projected growth rate - 5%
• Yearly premium - $3k

Here are the steps to configure the above ILP plan (see image):

1. Edit the net worth value to $30,000.
2. Edit the Capital Growth rate to 5% (an estimate after netting off the effect of assurance charges).
3. Toggle on "Linked Finances" so that you can add a premium for this plan.
4. Click on "+" beside the plan name under Cash Flow and select "Top-up".
5. Enter the description (e.g. Premium) and value (e.g. 3,000 / yr).

Endowment plan

For an endowment plan, the configuration is slightly different from ILP as the plan grow through a bonus mechanism. The premiums are considered as expenses unlike ILP which is a top-up.

Here are the steps to configure an endowmen plan (see image):

1. Edit the net worth value to be the current surrender value.
2. You may leave the Capital Growth rate as 0% (or you could try to edit this rate so it will appear on the net worth chart and visually grow like how the surrender value will growth over time).
3. Under the Sell-Off / Terminate section, key in the years till maturity into "Holding Period" (e.g. 20 years) and the maturity payout amount into "Payout" (e.g. $100,000). This maturity payout will be reflected into the cash flow during maturity.
4. Toggle on "Linked Finances" so that you can add a premium for this plan.
5. Click on "+" beside the plan name under Cash Flow and select "Expense"
6. Enter the description (e.g. Premium) and value (e.g. 3,000 / yr). If the premium term is short, you can click on "..." to edit the Period field.