Data Input

The Multi-Tier Split Annuity data entry screen allows for the data for the various products to be entered on one screen.

If the Calculation tab is not enabled, a message will appear below the grid indicating the problem with the data.

The information below describes the data entry fields for the Multi-Tier Split Annuity calculator.

Personal Information

Date of Birth

Enter the client's date of birth.

Account Setup

Solve for

Select how the calculation for the final tier is determined. The options include:

1.Monthly income with return of principal: the final tier's principal will return to the original value.

2.Defined ending balance: the final tier's principal will calculate

3.Lifetime income rider: the final tier's balance will be calculated to provide income from a lifetime income rider account. The income will be equal to the income from the other tiers, adjusted by inflation.

4.Final tier balance, declared initial income allows the initial tier's income to be entered.  The income for the other tiers will be calculated using the inflation rate(s) (as setup in the configuration option).  Inflation will be applied to incomes for non-immediate annuities.

5.Final tier balance, all incomes declared allows the income for each tier to be entered in the grid near the bottom of the page.  When this option is selected, a Required Income column will be displayed in the grid.  Inflation is not applied to the value entered for in Required Income column.

Principal Amount

Enter the total principal amount for the multi-tier annuity illustration.

Principal Type

Select if the Principal Amount is either Non-qualified or Qualified money.

Tax Rate

Enter the average tax rate for the illustration.

Inflation

Enter the inflation for the whole time period. (This prompt is disabled if the inflation is configured per time period).

Number of Tiers

Select the total number of tiers (options are between 2 and 5 tiers).

Initial Tier Configuration

Type of initial annuity

Select the type of the initial annuity: either an immediate annuity or a deferred annuity.

Number of years for the deferred annuity

If the initial annuity is a deferred annuity, enter the number of years to defer the annuity

Final Tier Configuration

The fields below configure the values for the final tier (the other tiers are configured in the grid below).

Tier name1

Enter the name of the final tier.

Rate of return

Enter the rate of return for the final tier.

Guaranteed rate of return

Check this box if the rate of return is guaranteed.

Premium bonus1

Enter the premium bonus for the final tier.

Ending balance

Enter the desired balance for the final tier. (This prompt is only enabled if Defined ending balance is selected for the Solve For method above).

Annuity payout rate

Enter the annuity payout rate value. (This prompt is only enabled if Lifetime income rider is selected for the Solve For method above).

1 Fields will be enabled only if the configuration options are set appropriate.

Tier Information

The grid at the bottom allows for data entry for the tiers prior to the final tier.  The data entry columns are described below. (Additional columns may appear that are not data entry columns. The specific list of columns is determined by the configuration settings).

 All tiers before the last tier are term-certain annuities.

Tier

Name

Enter the name of the tier.

Time Period

Number of Years

Enter the number of years for the specific tier.

Tier Information

Required Income

Enter the income required for the tier.

Premium Bonus

Enter the premium bonus for the tier.

Accumulation Rate of Return

Enter the accumulation rate of return.

Guaranteed Rate of Return

Check this box if the accumulation rate of return is guaranteed.  The report will display the data.

Estimated Inflation

Enter the estimated inflation to be illustrated during this time period.

Interest Rate or Annuity Rate

Enter the payout rate (either annuity rate or interest rate, as set in the Configuration options).