How Advanced Life Insurance Illustration & Quoting Software Transforms Policy Administration

For life insurance and annuity carriers, modern technology plays a pivotal role in delivering accurate and efficient services to clients. Among the key advancements are sophisticated life quoting and illustration software, which significantly enhances the administration of life and annuity policies. At Andesa, we recognize the importance of these tools and integrate them into our services to provide unmatched value to our clients.

What Are Life Insurance Illustrations & Quotes?

Carriers and brokers use life insurance illustrations and quotes to project and present the financial aspects of life and annuity policies. These tools provide prospective and existing policyholders with detailed insights into their policy’s performance over time, including potential benefits, costs, and coverage details.

Our solution generates immediate and accurate policy quotes based on specific parameters the client provides while offering comprehensive projections of a policy’s future performance. It considers factors like age, coverage amount, and policy type to calculate premium costs and other relevant details. This enables clients to make informed decisions about their policy options.

Andesa’s integrated solution includes scenarios like projected cash values, death benefits, and premium outlays over the policy’s lifespan. Such projections help clients understand how their policy will behave under different conditions and make long-term financial planning more transparent and accessible.

How Illustration & Life Insurance Quoting Software Works

Illustrations and life insurance quoting software help insurance professionals provide compliant quotes and clear, accurate illustrations tailored to individual client needs by automating data input, calculations, and projections. This end-to-end solution streamlines policy analysis, creation, and presentation, delivering a seamless experience for agents and clients.

Data Input & Analysis

The software begins by collecting comprehensive client data and policy details to create a foundation for accurate projections.

• Client Information: Personal data such as age, gender, smoking status, and other relevant factors ensures the quotes reflect the client’s unique profile.
• Policy Details: Information about the type of policy, coverage amount, and any additional riders allows the software to generate precise projections.
• Customized Data: Users can customize input parameters, including crediting rates, pricing options, commission schedules, and display formats, to create quotes and illustrations that match specific scenarios and preferences.

Calculation & Projection

The core of the software’s functionality lies in its ability to generate detailed, data-driven projections that illustrate policy performance over time.

• Quotes Generation: Using sophisticated algorithms, the software calculates premium costs and policy benefits based on the provided data, offering clear and actionable quotes to clients.
• Illustrations Creation: The software creates detailed outputs showing how the policy will perform under various conditions, such as different interest rates or policyholder behaviors, providing a transparent view of future outcomes.

Presentation & Customization

To enhance client understanding and engagement, the software offers versatile presentation options that can be tailored to each client’s needs.

• Custom Reports: Clients receive easy-to-understand, tailored reports that clearly and concisely present information.
• Composite and Individual Reports: The software allows users to generate reports for individuals or composite outputs for groups of policies, providing flexibility in how information is presented and reviewed.

Compliance & Accuracy

Ensuring compliance and accuracy is crucial in life insurance quoting, and the software is equipped to handle these requirements with precision.

• Regulatory Compliance: The software ensures that projections and quotes adhere to carrier-specific regulations and standards, minimizing compliance risks.
• Accuracy: Advanced algorithms and real-time data integration ensure that all projections and information are accurate and reflect the latest data, supporting informed decision-making.

This software streamlines the quoting and illustration process and enhances the overall customer experience by delivering accurate, compliant, and customized projections tailored to each client’s unique needs.

Who Uses Life Insurance Illustration & Quoting Software?

Professionals across the insurance industry widely use life insurance illustration and quoting software. Insurance agents are key users, relying on these tools to generate precise quotes and policy illustrations that guide clients in selecting the proper coverage. Financial advisors also utilize the software to create comprehensive financial plans, ensuring that life insurance policies align seamlessly with their clients’ broader economic goals. Underwriters depend on these tools to assess risk and set appropriate premium rates, while policy administrators use them to manage existing policies and verify that projections align with actual performance over time. Actuaries, known for their complex calculations, employ the software to produce detailed forecasts and conduct risk assessments, ensuring policies are priced accurately and sustainably.

Quoting and illustration software also play an essential role across various types of companies within the insurance sector. Life insurance carriers, ranging from large to small, leverage these tools to efficiently manage quotes and policy projections, supporting sales and policy administration functions. Brokerage firms, which act as intermediaries between insurers and clients, use the software to provide accurate, personalized services that meet client needs. Financial planning firms incorporate life insurance projections into their broader offerings, using the software to enhance client services. InsurTech companies—those at the forefront of technological innovation in the insurance space—also rely on advanced software to streamline operations and improve customer experiences. By integrating life insurance quoting software and illustration software into their workflows, these companies ensure high accuracy, compliance, and customer satisfaction across the board.

Key Features of Advanced Life Insurance Illustration & Quoting Software

Andesa’s software offers a robust suite of tools to enhance pre-sale and in-force (post-issue) management, providing a seamless experience across the entire policy lifecycle. By integrating advanced capabilities into a unified platform, we empower insurance professionals to deliver accurate, consistent, and tailored solutions that meet the diverse needs of their clients.

Pre-Sale & Post-Issue (In-Force) Capabilities

The software supports pre-sale quotes and in-force illustrations, ensuring clients have accurate projections throughout the policy lifecycle. This dual functionality enhances client confidence by providing clear insights from initial engagement through ongoing policy management.

Unified Code for Illustrations & Policy Administration

Utilizing the same code for illustrations and policy administration ensures consistency and accuracy in projections and actual policy performance. This unified approach eliminates discrepancies between what is illustrated and how the policy performs, delivering a transparent experience for policyholders.

Support for Complex Solves, Including Unknowns

The software can handle complex calculations, including solving for unknown variables, providing flexible and precise solutions tailored to client needs. Whether it’s optimizing premium payments, adjusting coverage, or configuring benefits, the system’s advanced computational capabilities ensure every scenario is accounted for.

Linking Benefit Plan Design to Insurance Policy Case Design

The ability to link benefit plan design directly to insurance policy case design allows for integrated and comprehensive planning, seamlessly aligning client benefits with policy structures. This feature supports holistic financial planning, ensuring that benefit plans and insurance policies work together to achieve client objectives effectively.

Real-World Example: Calculating COLI/BOLI for a Corporation

Let’s illustrate the capabilities of advanced life insurance illustrations and quoting software with a practical example. Consider a corporation seeking Corporate Owned Life Insurance (COLI) or Bank Owned Life Insurance (BOLI) for 100 key executives.

Step 1: Data Input

The process begins with data input, where the software collects comprehensive information such as the ages of the executives, which range from 45 to 60 years, along with other personal data like smoking status and general health information necessary for underwriting purposes. Each executive is set to receive a coverage amount of $1,000,000. The software allows users to customize these inputs further, including crediting rates, pricing options, and commission schedules, ensuring the policy design meets the corporation’s unique needs.

• Executive Data: Ages range from 45 to 60 years.
• Coverage Amount: $1,000,000 per executive.
• Health Status: General health information for underwriting purposes.

Step 2: Calculation

Once the data is input, the software processes this information using sophisticated algorithms that consider factors such as age, health status, and coverage amount to generate a quote. For example, the average premiums calculated might show that executives aged 45-50 pay approximately $100 per month, those aged 51-55 pay $150 per month, and those aged 56-60 pay $200 per month. This precise calculation ensures that the policy’s cost aligns accurately with the risk factors associated with each executive.

• Average Premium Calculation:
  • For executives aged 45-50: $100 per month.
  • For executives aged 51-55: $150 per month.
  • For executives aged 56-60: $200 per month.

Step 3: Projections

The software then moves into the projection phase, creating detailed illustrations showing how the policy will perform over the next 10, 20, and 30 years. These projections account for interest rates, policyholder behavior, and market conditions. For instance, the projected cash value of the policy after ten years could be $10,000,000, growing to $25,000,000 after 20 years and reaching up to $40,000,000 after 30 years. This forecast demonstrates potential growth and highlights the long-term value and financial benefits the policy brings to the corporation.

• Projected Cash Value:
  • After 10 years: $10,000,000.
  • After 20 years: $25,000,000.
  • After 30 years: $40,000,000.

Step 4: Presentation

Once calculations and projections are complete, the software generates a detailed report tailored to the corporation’s needs, helping the finance team understand the policy’s long-term value and potential benefits. These reports often include interactive graphs and charts, allowing stakeholders to visualize complex data and projections easily. Including composite and individual reports enables the corporation to see both group trends and individual performances within the policy, adding an extra layer of clarity and customization.

Benefits for Clients Using Life Insurance Quoting & Illustration Software

Life insurance quoting software and illustration software provide numerous advantages for clients, enhancing their overall experience with detailed insights, transparency, and efficiency. By leveraging advanced technology, the software empowers clients to make confident, well-informed decisions about their insurance options. It also saves time and ensures that their needs are met with personalized solutions.

Informed Decision-Making

Clients gain access to detailed and accurate quotes and illustrations that empower them to make well-informed decisions. The software’s ability to clearly present complex data simplifies decision-making, allowing clients to choose policies that best align with their financial goals and needs.

Transparency

Clear and comprehensive projections provide transparency, building trust and confidence in the policy’s value. By visually demonstrating how a policy will perform under various conditions, clients can see what they are purchasing, helping to eliminate confusion and align expectations.

Personalization

Customized reports and interactive tools cater to individual client needs and preferences. Whether clients want to explore different coverage scenarios, adjust variables, or compare policies, the software’s personalized approach ensures that each client receives relevant insights.

Time Efficiency

Automated calculations and projections save clients and insurance carriers time, streamlining the policy administration process. This efficiency speeds up the quoting process and reduces the time clients spend waiting for answers, providing a more seamless and satisfying experience from start to finish.

Andesa’s Commitment to Better Life Insurance Quoting & Illustration Software

At Andesa, we leverage cutting-edge life insurance quoting and illustration software to enhance our policy administration services. Our commitment to integrating advanced technology ensures our clients receive the best service and support. By providing accurate, transparent, and customized quotes and illustrations, we help our clients navigate the complexities of life insurance with confidence and ease.

Our team of experts is dedicated to continuously improving our software capabilities, ensuring that we stay ahead of industry trends and deliver the best possible outcomes for our clients. With Andesa, you can trust that your policy administration is in capable hands and supported by the latest technological advancements in quotes and life insurance illustration capabilities.

By embracing these advanced tools, Andesa meets and exceeds the expectations of carriers, home office personnel, brokers, and advisors, providing clarity and confidence in their financial planning journey.

If you need assistance with quotes and illustration capabilities or any other aspect of life insurance policy administration, contact us today.