Par solves

When using solves with participating product illustrations, there are many factors that may affect the results such as the dividend scale, adding or removing optional benefits such as Term insurance, adding Plus Premium, going on Premium Offset and if loans or withdrawals are included. The chart below describes the basis for the solves as well as some considerations specific to each solve.

Solve

Description

Availability

Considerations

Coverage Solves

Will solve for the coverage amount based on a specified monthly/yearly premium
  • Can be combined with other solves.
  • Can be used in combination with layered dividend scales, loans, withdrawals, Plus premiums, and offset.
  • Can be used with Enhanced insurance dividend option. In this case the coverage solve will result in the maximum coverage amount using the maximum enhancement amount.
  • If the specified premium is too high, the coverage amount will be adjusted to the maximum amount allowed.
  • If the premium specified is too low, the coverage amount will be adjusted to the minimum amount allowed.
  • Accidental Death Benefit (ADB) and Guaranteed Insurability Benefit (GIB) amounts may be adjusted based on the Coverage amount to meet product rules.

Dividend option change to cash - Earliest

Will determine the earliest that dividend option can be changed to cash
  • Can be combined with other solves.
  • Only available with Paid up additional insurance (PUA) or Enhanced insurance dividend options.
  • Only available when the premium option is either
    10 pay or 20 pay.
  • The earliest year will be when all policy costs have stopped. For the Enhanced insurance dividend option there is an added condition that the policy has to reach cross over.
  • Any specified withdrawals will end in the year when dividend option change to cash begins.

Plus Premium - Maximum

Will use the maximum Plus Premium allowed.
  • Can be combined with other solves.
  • Can select this option in combination with layered dividend scales, loans or withdrawals.
  • Only available with PUA or Enhanced dividend options.
  • Not available with 10 pay premium option.
  • Not available with permanent or temporary flat extras.
  • Not available with the Accelerator product.
  • If Plus premium is selected along with a Coverage solve and the premium specified is not enough to support the Plus premium, then Plus premium will be removed from the illustration.

Premium Offset - Earliest

Will determine the earliest year that premium offset is possible without lapsing
  • Can be combined with other solves.
  • Can select this option in combination with layered dividend scales, loans, or withdrawals.
  • Premium offset is only available with PUA or Enhanced insurance dividend options.
  • Not available with Accelerator product.
  • There may be some situations where premium offset is not possible. An warning message will be displayed in these situations.
  • When earliest offset is selected, the illustration will attempt to determine a separate earliest offset for each dividend scale scenario. So in this case, each scenario can be based on a different duration of planned premium payments.

Maximum withdrawal

The level maximum amount of money that can be withdrawn from the policy for the years specified by the user.
  • Can be combined with other solves.
  • Can have this withdrawal solve in combination with layered dividend scales, coverage solve and earliest offset.
  • Withdrawals are only allowed with the following dividend options:
    • PUA,
    • Enhanced insurance, and
    • Dividends on deposit (DOD)
  • Ensure that the years entered are not past age 100.
  • The solved maximum withdrawal amount will be based on the Primary dividend scale. This amount will also be used as a specified withdrawal for alternate dividend scenarios.
  • If Maximum withdrawal is selected, you cannot layer withdrawals.
  • If withdrawals are illustrated, loans cannot be illustrated.
  • Withdrawals will end in the year when dividend option change to cash begins (if illustrated).

Maximum
loan

The level maximum policy loan amount for the years specified by the user.
  • Can be combined with other solves.
  • Can have this loan solve in combination with layered dividend scales, coverage solve and earliest offset.
  • Ensure that the years entered are not past age 100.
  • The solved maximum loan amount will be based on the Primary dividend scale. This amount will also be used as a specified loan for the alternate dividend scenarios.
  • If Maximum loan is selected, user cannot layer loans.
  • If loans are illustrated, withdrawals cannot be illustrated.