How to Use the Model (Help)

Welcome to the Wintrust Life Finance IRR Model!

This model empowers insurance representatives to show clients some of the potential benefits of life insurance financing with Wintrust Life Finance.

Getting started is easy. On the left side of the landing page (or Edit Variables page), you can enter the following information and proceed to the next tab via the tab key, clicking your mouse or touching that field on a touch-screen enabled device:

Note that Retained Capital Earnings Rate is the average rate of return that the insured is projected to earn on outside investments.

Now select the Interest Type from the dropdown box (Advance, Arrears or Deferred). If the Interest Type is Deferred, enter the number of years (maximum 5 years) that the client wants to defer interest payments.

Enter the amount that the Base Rate is assumed to increase each year (default value is 0.5%).

And enter the maximum rate (above current Base Rate) used to populate Base Rate and collateral needs for this analysis. Once assumed Base Rate equals or exceeds this rate, there will be no further Annual Interest Increase added (default value is 5%).

Next, populate the values matrix. You just need a handful of data points for 10 years that can be found on relevant policy illustrations:

Down Payment or 1035 Exchange

Amount of 1035 proceeds or policy premium that client will pay out of pocket to offset aggregate policy premiums.

Policy Cash Surrender Values

For Whole Life or Universal Life policies, projected year end cash surrender values should be populated using non-guaranteed values assuming current charges and interest crediting. For Indexed Universal Life policies, projected year end cash surrender values should be populated using current charges and guaranteed interest crediting.

Policy Premiums

Amount of aggregate annual policy premium required.

Policy Death Benefits

Projected end of year policy death benefit value.

Once you are comfortable with the values on this page, click the Submit button and the model will crunch all the numbers and will display the analysis. Once you have entered the analysis page and you want to modify any variables, simply click the Edit Variables link in the upper right corner of the screen. In links adjacent to this, you will be able to reset variables to default, export scenarios to MS Excel, show the model in a Printer-friendly Format and study the glossary of terms. Note that if you have any questions about this model or any potential loan, feel free to contact your Wintrust Life Finance representative at 1-888-747-4762 and we will be happy to assist you.