How to Add and Manage Term and Permanent Life Insurance

Planworth allows you to record existing term and permanent life insurance policies in the client's Evaluation to model premiums and death benefits based on the information entered. Use the policy contract, current insurer statement, or illustration to confirm policy values.

Before adding an existing life insurance policy, gather the following information from the insurer's documents:

Personal vs. Corporate Ownership

Planworth supports both personal and corporate life insurance policies.

Corporate term and permanent life insurance options are available in the Pro +Evaluation and require saved Private Corporation shares.

Existing vs. New Policies

Existing life insurance policies should be entered through the client's Evaluation.

Scenario toggles are separate planning inputs used to model hypothetical future policies or adjustments to existing permanent life insurance coverage.

For example, adding a New Term Life toggle for a policy already recorded in the Evaluation can result in duplicated coverage.

To add an existing personal or corporate term life insurance policy:

Insurance entries must be saved before the information is reflected in other views.

Planworth supports the following permanent life insurance policies:

You can enter policy information directly from an insurer's illustration using the permanent life insurance grid.

Note: Planworth does not support importing or uploading illustration files. However, you can copy and paste values directly into the grid. Dollar signs and commas are automatically removed when pasted.

Important: For policies other than Term 100, the Cash Surrender Value must be at least $1. Otherwise, the system displays the validation message "CSV should be at least $1."

The permanent life insurance grid contains the following columns:

Copy each column from the insurer's illustration and paste the values into the corresponding fields.

Corporate permanent life insurance is available in the Pro Evaluation.

Before adding a corporate permanent life insurance policy, the corporation's private shares must be saved in the Evaluation. The Corporate Permanent (UL, WL, Term 100) option remains unavailable until these shares are saved.

To add a corporate permanent life insurance policy:

Note: Corporate permanent life insurance premiums are reflected in the corporation rather than the personal Cash Flow Summary.

In addition to recording existing policies in the Evaluation, you can use scenario toggles to model new insurance policies or changes to existing permanent life insurance coverage.

Select the appropriate toggle based on what you want to model.

The Permanent Life Insurance Adjustment toggle allows you to modify the permanent life insurance grid for an existing policy.

The toggle locks the selected policy and allows you to edit its values. Additional fields, such as Source of premiums, including Cash Flow/Deficiency Order, appear when available.

Once a life insurance policy has been saved, its information can be reflected in different areas of Planworth.

In a Financial Insights scenario, life insurance premiums are modelled as cash outflows based on the amounts entered. Review the premium and death benefit rows under Details, when available.

When available, Statements → Term Life Analysis (or Life Insurance) provides an as-of-today view of the saved policy. After saving a policy, reopen the analysis and compare the displayed policy information with the Evaluation entry.

Estate-related results can apply the entered death benefit when a modelled death is part of the scenario.

For personally owned permanent life insurance policies, Planworth uses the Annual Premium entered in the permanent life insurance grid for each calendar year.

These premiums appear in the Cash Flow Summary under:

Corporate permanent life insurance premiums are reflected in the corporation rather than the personal Cash Flow Summary.

When entering a life insurance policy, complete the Owner, Insured, and Beneficiary fields when they are available.

Tax and estate treatment can depend on the policy's ownership and beneficiary structure. Confirm these details using the policy contract and the client's qualified professionals. For joint, multi-life, or second-death policies, follow the fields displayed in Planworth and confirm the policy structure with the insurer.

Important: Do not assume that a beneficiary designation bypasses probate in every jurisdiction or ownership structure.

To update a policy already entered in the Evaluation:

Changes to existing policy information should be made in the Evaluation, not by editing figures displayed in Statements.

To model scenario-specific adjustments to permanent life insurance, use the Permanent Life Insurance Adjustment toggle.

If Corporate Term or Corporate Permanent is unavailable:

If the projected life insurance coverage appears higher than expected, check whether the same term life insurance policy has been entered in both:

Using both for the same policy can result in duplicated coverage.

If permanent life insurance premiums are not appearing in the personal Cash Flow Summary, review the following:

1. Corporate ownership

Premiums for corporate permanent life insurance policies are reflected in the corporation rather than the personal Cash Flow Summary.

2. Annual Premium is blank or zero

If the Annual Premium field is blank or set to $0 for a particular year, no premium will appear in the Cash Flow Summary for that year.

3. Premium Status is fully paid

If the policy's Premium status is set to fully paid, the annual premium is set to $0.

Review the permanent life insurance grid to confirm that the correct premium amounts are entered for the applicable years.

Planworth uses the insurance information entered by the advisor to model premiums, death benefits, and related financial projections. Changes made within Planworth do not affect the actual insurance policy. Always refer to the insurer's current documents to confirm policy values and coverage.