Personal Life Insurance Planning - OR

In this course you will be introduced to terms and concepts used in connection with personal life insurance planning. Each new term is defined in the text and included in the Glossary. The concepts are explained and, where appropriate, are demonstrated through the use of examples.

This information is important for agents selling insurance products to customers and for advisers assessing the appropriateness of a life insurance recommendation for a client. An understanding of the methods used to determine suitable life insurance amounts to meet survivors’ lump-sum cash needs and income needs will assist the agent and adviser to better serve consumers and help ensure that appropriate life insurance amounts are recommended and purchased when they are suitable to meet client needs.

Upon completion of this course, you should be able to:

• Describe the early attempt to calculate appropriate life insurance amounts known as the human life value method.
• Understand the importance of basing client insurance requirements on a thoroughgoing analysis of needs.
• Gather the appropriate client information required to perform an insurance needs analysis.
• Identify and calculate a client’s family’s lump-sum needs at the death of a breadwinner.
• Understand the Social Security survivor benefits that need to be considered in analyzing survivors’ needs for life insurance to replace income.
• Identify and calculate survivors’ income needs during the dependency period, blackout period and retirement period.