Clarity IUL - Monte Carlo Simulator

Your plan at a glance

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Your retirement projection

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What if the market crashes?

IUL floors credit 0% in down markets - not the actual loss. Here's how each crisis affects your plan.

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Policy inputs

Enter insured profile and policy parameters. Year 1 outputs are calibrated to match carrier illustration values.

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Upload carrier illustration (.xlsx / .csv)

Click to upload policy illustration spreadsheet

Excel (.xlsx) or CSV — exported from your carrier illustration software

Overview

The simulator runs N independent policy projections (default 3,000). Each simulation draws a unique sequence of annual index returns based on the selected model, then applies the policy mechanics year-by-year. Results are ranked to produce percentile bands (10th, 25th, 50th, 75th, 90th).

Model 1 — Historical Bootstrap

Samples with replacement from the actual S&P 500 annual total-return series (1928–present). Each simulation year draws one historical year at random. No distributional assumptions — the full fat-tail and skew of history is preserved. Start year bias is removed by sampling uniformly across all available years.

Model 2 — GBM (Geometric Brownian Motion)

Generates log-normally distributed returns using the configured mean and volatility parameters.

annual_return = exp(μ - σ²/2 + σ × Z) − 1
where Z ~ N(0,1), μ = param mean, σ = param vol

Model 3 — PRISM (Mean-Reverting)

An Ornstein–Uhlenbeck process that allows configurable drift and sigma. Returns tend toward a long-run mean rather than drifting freely, producing more conservative tails over long horizons.

r_t = r_{t-1} + θ(μ - r_{t-1})dt + σ_prism × √dt × Z
where θ = reversion speed, μ = PRISM drift

Lapse Detection

A simulation is flagged as lapsed when the net accumulation value (AV minus outstanding loan balance) falls below the lapse threshold (default 95% of outstanding loans). Lapsed scenarios are counted separately and excluded from the survivor percentile bands.

Annual Indexed Credit

Applied once per policy year to the net accumulation value after charges and before the next year's premium. Participation rate scales the raw index return before applying the cap and floor.

raw_credit = index_return × (participation_rate / 100)
net_credit = min(max(raw_credit, floor), cap)
AV_end = AV_start × (1 + net_credit)

Cap / Floor / Participation Rate

All three are editable and can be scheduled to change over time using the parameter schedule. Cap and floor are expressed as percentages (e.g., cap = 11 means 11%). A floor of 0 means the minimum credited rate is 0% — no negative index years affect the AV directly.

Cap Stress Scenario

The stress run uses the Cap Stress value instead of the base cap for all years. This models a carrier reducing the cap over the life of the policy — a common risk in IUL illustrations. Percentile bands are computed separately for base and stress runs.

Spread

If a spread is configured, it is subtracted from the raw participation-adjusted return before the cap and floor are applied: net_credit = min(max(raw_credit − spread, floor), cap).

Premium Load

Deducted from each premium payment before it enters the accumulation value.

net_premium = gross_premium × (1 − premium_load% / 100)

When imported from a carrier export, load % is derived from Year 1: |Premium Charge| ÷ Premium Outlay × 100.

Policy Fee

A flat annual fee deducted from the AV each year the fee is active (configurable number of years). Expressed in dollars per year.

AV = AV − policy_fee_annual (years 1 through policy_fee_years)

Admin Fee

A separate annual per-policy administration charge deducted every year for the life of the policy.

Cost of Insurance (COI)

If a COI column is present in the import, those values are used directly. If absent, COI is estimated internally from the insured's age, gender, and health rating using a simplified net amount at risk model:

NAR = death_benefit − AV
COI = NAR × qx / 1000
where qx = age/gender/class mortality rate per $1,000

Surrender Charges

Applied as a percentage of the AV during the surrender charge period. Year 1 charge % and the number of years are set manually. The charge grades linearly from the Year 1 rate to 0% at the end of the surrender charge period.

sc_rate_yr_n = sc_yr1_pct × (1 − (n−1) / sc_years)
surrender_value = AV × (1 − sc_rate_yr_n / 100)

Loan Mechanics

Policy loans reduce the net accumulation value available for indexing. The outstanding loan balance accrues interest annually at the configured loan rate.

loan_balance_end = (loan_balance_start + loan_drawn) × (1 + loan_rate/100)
AV_available = AV − loan_balance_end

Loan Rate Schedule

The loan interest rate can be scheduled to change at any policy year. The schedule editor allows multiple rate tiers (e.g., 5% years 1–10, 4% thereafter). Each tier uses the from-year as the start of that rate.

Indexed vs. Fixed Loan Crediting

The simulator applies a simplified model where the loan balance earns no index credit (i.e., the loaned portion sits in the fixed account at the loan rate). The AV available for indexing is therefore AV − loan_balance.

Lapse from Loans

If AV_available / loan_balance < lapse_threshold%, the simulation is marked lapsed for that year and all subsequent years. The lapse threshold (default 95%) is configurable.

Option A — Level Death Benefit

The death benefit remains at the initial face amount. As the AV grows, the net amount at risk (NAR) decreases, which lowers COI charges over time. The policy must maintain a corridor between DB and AV per IRC §7702.

Option B — Increasing Death Benefit

The death benefit equals the face amount plus the accumulation value. The NAR stays relatively constant, keeping COI charges higher but preserving a larger death benefit as the AV grows.

DB_option_B = face_amount + AV

DB Reduction (Corridor / Custom)

The DB reduction mode determines how the death benefit is managed when it exceeds the IRC §7702 corridor limit. Corridor mode automatically reduces the face amount to stay within the corridor. Custom mode reduces the face amount to a specified target once the AV reaches a threshold.

Corridor Factor

Per IRC §7702, the death benefit must be at least a corridor multiple of the AV. The corridor factor decreases with age (e.g., 250% at age 40, 130% at age 70, 100% at age 95+). The simulator enforces this minimum at each policy year.

Supported Formats

Upload a carrier illustration export as .xlsx or .csv. The tool auto-detects the format — no column renaming needed for Securian ExportIllus. For other carriers it matches by column name using the aliases below.

Securian / MN Life (ExportIllus)

File → Export → Spreadsheet → ExportIllus format. All metadata is auto-parsed: age, gender, health class, death benefit, loan rate, par rate, and schedules. Cap rate is not auto-populated — it varies by product. Set manually from the product spec.

Required Columns

Column	Req	Also recognized as	Notes
Policy Year	Yes	Year, Policy Yr, Yr	Sequential starting at 1.
Beginning Of Year Age	Yes	Age, Attained Age, Insured Age	Derives current and end age.
Premium Outlay	Yes	Annual Premium, Premium, Planned Premium	Use 0 for distribution-only years.
Non-Guaranteed Accumulation Value	Yes	Accumulation Value, Account Value, Cash Value, CV	AV before loan subtraction. Year 1 calibrates the model.
Non-Guaranteed Death Benefit	Yes	Death Benefit, Face Amount, Total Death Benefit, DB	Year 1 sets initial DB.
Premium Charge	Optional	Premium Load, Load Charge	Year 1 \|value\| ÷ premium = load %.
COI Charge	Optional	COI, Cost of Insurance, Mortality Charge	Calculated internally if omitted.
Policy Issue Charge	Optional	Issue Charge, Policy Charge	Active years derived from row count with charge > 0.
Additional Charges	Optional	Admin Charge, Admin Fee	Year 1 value used as annual admin fee.
Annual Loan Amount	Optional	Loan Amount, Distribution Amount	Builds loan schedule automatically.
Total Loan Balance	Optional	Loan Balance, Outstanding Loan, Policy Loan	Reference only.

Other carrier exports

Pacific Life: PL Illustrator → Export to Excel from illustration output screen.
North American: Download Data button in the illustration portal — choose CSV format.
Nationwide: Illustration results → Export → Excel Workbook.
Other carriers: Any year-by-year export works. Rename columns to the headers above only if auto-detection fails.

Insured profile

Current age * Required

Gender * Required

Retirement age Needed for income analysis

Health rating * Required for COI calculation

Tobacco use * Required for COI calculation

Policy parameters

Annual premium outlay ($) * Required

Initial death benefit ($) * Required

Premium paying years * Required

Target end age * Must be greater than current age

DB option

Face reduction at end of premium period

When premiums stop, the face amount can be reduced to lower the net amount at risk (NAAR) and dramatically cut cost of insurance drag during the distribution phase. The IRS §7702(d) corridor sets the absolute floor — DB cannot fall below CSV × corridorFactor(age).

Reduction strategy

Policy charges

Enter the charges from your carrier illustration. These vary by product — nothing is hardcoded. Leave a field at 0 if your policy doesn't have that charge.

Premium load (%)

Policy fee ($/yr)

Policy fee period (yrs)

Annual admin fee ($)

Surrender charge yr 1 (%)

Surrender charge period (yrs)

Lapse threshold (%)

Loan/AV ratio that triggers lapse. Most carriers: 90–95%.

IUL crediting parameters

Define crediting parameters by period. First row applies from Year 1. Add rows to change parameters at any future policy year (e.g. cap drops at Year 5). Cap Off = uncapped, use when participation rate is the lever.

From Yr Cap % Cap Off Part % Floor % Spread %

Premium schedule

Define premium outlay by period. Use policy year numbers (e.g. 1) or insured age prefixed with A (e.g. A61). Periods are inclusive on both ends.

Annual premium ($) From To

Loan & distribution schedule

Define loan draws by period. Mix fixed amounts and different periods. Use year numbers or A+age (e.g. A68 = age 68).

Rate % From year

Enter a negative amount to repay the loan in that period (reduces outstanding loan balance).

Death benefit option

Option B (increasing) keeps face amount constant and death benefit grows with accumulation value. Option A (level) maintains a level death benefit equal to the face amount.

Simulation configuration

Return model

Results dashboard

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Year-by-year detail

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Sensitivity analysis

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Run the simulation to generate a sensitivity analysis across key variables.

IUL vs. alternative vehicles

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Super admin dashboard

Manage all firms, owners, and advisors. Only you can see this.

Generate firm file

Fill in the firm details below. Click Generate & download to produce a ready-to-upload index.html pre-configured for that firm. Upload it to yourdomain.com/firmname/

FIRM IDENTITY

Firm name

Firm ID (URL slug, no spaces)

Default mode

Accent / brand color

Heading font color

Body text color

FIRM LOGO

Upload separate logos for dark and light modes. Recommended: transparent PNG or SVG, max 200px tall.

Dark mode logo

Click to upload (PNG, SVG, JPG)

Use on dark backgrounds

No logo

Light mode logo

Click to upload (PNG, SVG, JPG)

Use on light backgrounds

No logo

OWNER ACCOUNT

Owner name

Owner email

Owner password

All firms

Password hash generator

How passwords work in this system

Passwords are never stored in plain text. Every password is converted to a SHA-256 hash — a fixed-length fingerprint — before it is saved. When a user logs in, their typed password is hashed on the spot and compared to the stored hash. The original password is never saved anywhere.

When to use this tool: Use the hash generator when you need to manually set or reset a password by editing the USERS array in the HTML source — for example, to reset the super admin password or a baked-in owner password that cannot be changed from within the UI.

Step-by-step: Type the desired plain-text password below → click Generate → copy the hash string → open the HTML file in a text editor → find the relevant entry in the USERS array → replace the password: value with the new hash → save and re-upload to your host.

Advisors added through the owner dashboard can change their own passwords from the Account panel after login — they do not need this tool.

Plain-text password

Settings

About user management

User accounts are stored in the const USERS array at the top of this HTML file. Each user has an email, a hashed password, a role, and firm details.

Owners are created when you generate a firm file from the Super Admin dashboard. Their credentials are baked into the file you upload to Hostinger.

Advisors are added by the owner from inside the tool. Their accounts persist in the browser localStorage on the hosting server, so the same credentials work on every login from any device that hits that URL.

Passwords are never stored as plain text. Every password is converted to a SHA-256 hash before storage. When a user logs in, their typed password is hashed and compared — the original is never stored anywhere.

Resetting an advisor password — owners can set a new password for any advisor directly from the Advisors in your firm list on the dashboard. Click the key icon next to the advisor, enter a new password, and save. The advisor can log in with the new password immediately.

Resetting an owner or super admin password — generate a hash below, open the HTML file in a text editor, find the USERS array, replace the password value with the new hash, save, and re-upload to Hostinger.

Password hash generator

Reference: how password hashing works

All passwords in this system are stored as SHA-256 hashes, not as readable text. A hash is a one-way fingerprint — it cannot be reversed to reveal the original password. When a user signs in, the system hashes what they type and compares it to the stored hash.

This tool is for manual credential updates only — for example, resetting a super admin or owner password that is baked into the HTML source. Regular advisors can change their password from the Account panel after logging in.

To manually reset a password in the source file:

Type the new plain-text password below and click Generate hash
Copy the resulting hash string
Open this HTML file in a text editor (VS Code, Notepad++, etc.)
Find the USERS array near the top of the <script> block
Replace the relevant password: value with the new hash
Save the file and re-upload to your hosting provider

SHA-256 produces a 64-character hexadecimal string. Hashes are deterministic — the same password always produces the same hash — so you can verify your copy was successful by generating again and comparing.

Plain-text password

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