Paul Bohlen explains how to read an AUL (American United Life) monthly illustration, focusing on correctly deriving annual premiums and entering them into the GPS policy values. He shows that the illustration lists a monthly premium (e.g., $800/month) but the illustration’s “contract premium” annual column can show a different annual number (e.g., $9,396.42) because the AUL software stores a computed annual premium instead of simply monthly×12. He also explains how to find the policy issue date (November 2017) and compute policy year (end of year 5 = 2021).
Chapters
I want to make sure you know how to read an AUL monthly illustration. To get the proper numbers for the GPS policy values, you go to the page in the illustration, normally around page 11. This is I'm on page 14. 11 is the first time it appears in this illustration. And you can see in the heading that it's a monthly premium and it says it's 800amonth by this number right here. Well, if you multiply 800 times 12, that means the premium for the year is 9,600. However, if you look on the illustration in the contract premium column, it doesn't say 9600. It says 9396. 42. Why the difference? The reason it's different is the Auld software puts the annual premium in this column always. It doesn't put the monthly times 12. So you have to calculate it manually. Now how do I know that if I go later in the illustration to where it breaks out the premiums? You see here's the annual base and the annual PUA. If you add those up, that's the 939642, where this shows 320 plus 480 or the 800 per month. So how do you apply that? When you get to the GPS document in the policy value tab under premium, you manually put in 800 times 12. You don't use the copy and paste feature. And then when it goes down to the $10 a month, you change it to 330 times 12. And I'll show you that in a minute. These numbers you do take and copy and paste right off the illustration. So those are valid. Let's go back to the illustration. If I take 320 and I make this monthly of the minimum of 10, that means it's 330. So that's why this became 330 times 12. What did they show on the illustration? They show this number plus 120, which is three seven, five six. So let's go back to page 11, 3756. So I know this is calculated with 120. And if I go down there, it looks like the 120 stayed on until we got to year 21 and it dropped. And that was probably done to make sure it didn't mec. If it was kept on too long, it would mec. So that's the difference with an aul. It's the only company right now that the monthly illustrations, you can't use the numbers here. You have to calculate them where you take this here times the 12. How do I know what year we're in? On a AUL illustration, I go to the bottom of the page. It will give me my issue date. So this is November of 17, and I just count on my fingers. 17, 18, 19, 2021 is year five, and that makes sense, because this is end of year, and end of year five would be 2021, November 27th. So this is the fifth year being 2021, and that's how I know what this number is here or what year it starts. So that's it for the a monthly.
