Below is a description of the various inputs for the Lump Sum Transfer calculator:
# of Years
Enter the number of years to illustrate.
# of Deposits/Year
Enter the number of ongoing deposits made per year.
Amount of Deposit
Enter the amount of each ongoing deposit.
The inputs for Account 1 and Account 2 are exactly the same, with the exception of the surrender fee prompts for Account 1. Each input will only be discussed once.
Name
Enter the name of the account.
| Note: | It is strongly suggested that you do NOT use specific company, product, or account names when creating an illustrative projection. |
Initial Value
Enter the account balance of the current product. The value for Account 2 will initially be calculated from the balance of Account 1 and the surrender fee; it may, however, be overridden.
Interest Rate
Enter the current interest rate or historic interest rate.
Bonus Type
Select the bonus type for the account. There are four options:
| No Bonus: | The account does not have any bonus. Bonus term prompts will be disabled. |
| Premium: | The account pays a percentage of the contributions received for a specific period of time. |
| Interest: | The account pays an additional interest rate for a specific period of time (e.g. 1%). |
| Dollar: | The account offers a specific dollar amount upon transfer. The amount of the bonus is often the amount of the surrender charge paid. Bonus term prompts are not relevant and will be disabled. |
| Notes: | Bonus products may require the client to annuitize the contract, rather than surrender it as a lump sum, in order to receive the bonus monies. |
| Bonus products may not credit the bonus as earned unless the client has the contract for a specific period of time. If the client makes a full or partial withdrawal from the account, they may not receive the bonus. |
Bonus Value and Term of Bonus
Values are enabled depending on the selection of the prior prompt.
Annual $ Fee and Annual % Fee
Enter the annual fee charged by the product.
If the fee is charged as a percent of assets, enter the annual percentage fee here. Do not enter account maintenance fees as a % of assets.
Surrender Fees
If there is a surrender fee involved in moving to a subsequent product, enter the fee either as a percent (%) or specific dollar ($) amount.
| Note: | If moving from a two tier product, enter the annuity value as the account balance and the difference between the annuity value and the cash (or surrender value) as the surrender fee on the $ Surrender Fee line. |
