Quote & Apply Solve Options

When running Universal Life, Protection IUL, Accumulation IUL, and Protection VUL, you’ll see an array of “Solve” options. Here’s an explanation of each:

Premium Solves: when using a premium solve, you’ll need to specify the death benefit. For example, let’s say you know your client wants a $1,000,000 death benefit for the following solves.

• Max Non-MEC Premium: this is the maximum premium that can be added while still maintaining the tax benefits of not being a MEC (modified endowment contract). Quote & Apply uses an Option B/2/Increasing benefit that switchings to Option A/1/Level when premiums end.
• Target Premium: this sets the premium to the amount that is commissionable at first-year commission rates.
• Case Value at Age: this is the premium required so that the cash value equals the cash value you input at the age you input (e.g. $1 of cash at age 120 will return the premium needed for there to be $1 of cash value at age 120).
• Lapse Protection Premium: the premium required to maintain a no-lapse guarantee using the stated death benefit.

Death Benefit Solves: when using a death benefit solve, you’ll specify the premium. For example, let’s say you know your client wants to spend $5,000 per year and you want to find out how much death benefit that will purchase.

• Min Non-MEC Death Benefit: this is the lowest death benefit based on the premium while still maintaining the tax advantages of not being a MEC (modified endowment contract). A lower death benefit means lower fees and higher cash values. Quote & Apply uses an Option B/2/Increasing benefit that switchings to Option A/1/Level when premiums end.
• Cash Value at Age: this will return the death benefit so the cash value equals the cash value you input at the age you input (e.g. $1 of cash at age 120 will return the death benefit needed for there to be $1 of cash value at age 120 based on the stated premium).
• Lapse Protection Death Benefit: the death benefit that can be purchased based on your provided premium while maintaining a no-lapse guarantee.

No Solves

• No Solve: allows you to specify the premium and the death benefit to see how much cash value there is and how long the policy runs for.