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Contingent Planning, changing the date of death

Submitted by sam@hotmail.com on 12 April 2007 - 12:09am

I'm fuzzy on the contingent planning function. I want to make sure I have enough life insurance to protect my wife if I die tomorrow. How/where do I tell ESP that my age at death is 54 not 90?

Also, will the contingent planning automaticaly stop my income at age 54 or do I have to go to "contingent Earnings" and delete all values after 54?

‹ Confused by Contingent Planning Low Survivor Standard of Living and No Insurance Recommended ›
Submitted by Laurence Kotlikoff on 25 April 2007 - 9:04am.
1

Hi, ESP considers all possible dates for your death. So you don't have to tell it when you will die. If considers the possibility of your dying at 54, 55, 56, etc. all the way to your maximum age of life. Same for your wife.

The program knows that if you die at 54, your earnings will stop. In this case, it considers you wife's contingent earnings (your wife's earnings contingent on your dying) to determine how much life insurance you need to buy at 53 to protect her against your dying at 54.

If you want to see what will happen to your wife were you to die at 54, run the survivor report specifying age 54 as you age of dealth.

best, Larry

I'm fuzzy on the contingent planning function. I want to make sure I have enough life insurance to protect my wife if I die tomorrow. How/where do I tell ESP that my age at death is 54 not 90?

Also, will the contingent planning automaticaly stop my income at age 54 or do I have to go to "contingent Earnings" and delete all values after 54?

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