How to Model Indexed Universal Life (IUL) Scenarios

0:02: Hello. 
0:03: This video will walk you through how to model an IUL scenario in Income Lab. 
0:08: we'll cover how to copy a plan, what inputs are needed, and then how to view it overall, in Life Hub once it's built out. 
0:15: So, from your main dashboard here on the households page, I'm gonna click into the household I already have. 
0:22: And this base plan here does not have the IUL scenario, so I'm going to go ahead and copy this plan by clicking the three dot icon in the top right, copy plan. 
0:33: And it's going to take us to our income plan stepper here where I'm going to go ahead and label this scenario. 
0:41: And then here in the description, you can add in notes. 
0:47: Based on this scenario. 
0:53: And then at the top here, you're gonna notice the categories in the, in the stepper here. 
0:57: If I look at the top right, there's a plus sign. 
0:59: So anything that's not added in there, you can go ahead and add it here. 
1:03: Click in the insurance here where we're gonna name. 
1:07: Insurance policy, who it's owned by, who's its insured? 
1:13: John here, select the type, permanent, face value, put in the dollar there, coverage from, and you can make your updates and changes here under the gear icon here. 
1:25: It's gonna allow you to put in more inputs related to this specific line item so we can update the cash value here when it's covered, the premium, if you wanted to put that in there. 
1:37: And then we see the frequency and the payouts. 
1:39: You can do monthly, annual, and some other options here. 
1:42: we include payments as expense item in plan. 
1:44: It's a variable expense. 
1:46: We defaulted to that. 
1:47: So that way, in 2035, we're not gonna replace it with more income to cover that. 
1:51: it's just gonna go away at that point. 
1:53: So, that'll build in the life insurance policy here. 
1:57: Now, something To consider whenever you're putting in a, a life insurance policy, it doesn't impact the plan until you have an end of life scenario. 
2:05: So, as a default, income life plans run through them both surviving all the way through. 
2:10: So, if you did have an end of life, again, that death benefit would kick in when you do end it for the insured here, but as a default, we just play it all the way through. 
2:18: The next item here is other income. 
2:21: We're gonna add in the IUL source. 
2:25: Recommend putting it as a monthly value here just to smooth out the charts and the visuals. 
2:30: And then earned by, since it is just John's, we're gonna go ahead and earn it by John here. 
2:35: Tax treatment, since it's a tax-free income source, we would list it as not taxable, but you see other options here that you can select from in that gear icon, we can build this out a bit more. 
2:44: Inflation treatment. 
2:46: Gonna adjust this, keep it as non-taxable, recurring. 
2:49: You do have some other options here. 
2:51: A can recommend putting it as monthly so it smooths out specified date. 
2:55: You have some other options here, but we're gonna go ahead and start this in the future. 
2:58: So we're gonna push this out to 2030. 
3:01: And you can also select this calendar option to select a year if you'd like to do that. 
3:06: When the end date option, now, if you want to go all the way through end of, John's plan here, you can select that or specify date if we're only gonna use a date range, right? 
3:14: Maybe, You know, just for the next 10 years, we'll push that out. 
3:22: This is a joint plan. 
3:23: Will this income stream change if one spouse passes away? 
3:26: Again, only really plays a part if you end a plan sooner for John. 
3:30: The death benefit kicks in. 
3:31: This income stream would stop because it's earned by John. 
3:34: So, we can go ahead and leave it as is if you don't have an end of life scenario planned out. 
3:39: Clicking save. 
3:41: Now we're done. 
3:42: So, you don't need to click finish each time, you can always just make your updates to any of these other categories and then click finish. 
3:50: And it's gonna calculate us back here to the main dashboard for this IUL scenario. 
3:54: There's a dropdown here that you can go to the base plan that we had, but that's gonna list all your scenarios that you copy those. 
4:01: So, this IUL scenario has this built in. 
4:04: Life Hub is gonna be the best view for that. 
4:05: So, on the left-hand side, you'll see this Life Hub tool here. 
4:09: And here, we can see everything in the plan starting in 2025, and we can use this timeline to push out what that future projection looks like. 
4:17: I'd like to click open this kind of hamburger stack up here at the top to expand every input that we have in here. 
4:23: We can see the permanent life insurance here. 
4:25: You can click into these little pills and it'll open up that window where you can make your updates. 
4:29: Something to consider here too, whenever you put in a life insurance. 
4:32: This cash value, it's hard-coded in there. 
4:35: So if you do have a withdrawal coming from that for the IUL income, you would have to manually update it here, if you're presenting to a client. 
4:43: So just keep that in mind. 
4:45: This is not linked to our IUL income. 
4:47: They are separate. 
4:48: So, something to consider as you're, you're building these out. 
4:52: IUL income, you see it's $0. 
4:53: If I hover over this, it kind of highlights on the timeline when that income stream is coming through. 
4:58: So, I can jump to the timeline here by clicking on the blue timeline. 
5:01: And we see now there's our IUL income, and you can click into this pill here if you need to make your changes or updates. 
5:07: We see it as a non-taxable income stream. 
5:09: coming through for the next 10 years. 
5:11: So you can click through this timeline and see that IUL income come through, but notice our cash value on that permanent life insurance stays constant, right? 
5:20: So that's where you would have to come in, OK, if we're taking money out, reducing this cash value, at some point, we will have an enhancement to have those links, but for now, you just, you do have to manually update it. 
5:30: But that's how you can handle an IUL income stream built into the plan to supplement that spending plan. 
5:36: , if you do have any questions or would like to reach out to our support team, we're happy to review the case with you. 
5:42: If you click on this blue question mark at the top right, go to our self-guided training, and in our support line here, we have a scheduled training where you can book a time with our team and we can go over your scenario, you know, answer any questions you might have. 
5:56: our team is happy to assist there. 
5:58: So, thank you for your time and watching this video and thank you for choosing Income Line. 
6:01: Take care.