Chapter 1: Life Insurance

1

How much life insurance do I need for my family?

1

Immediate Expenses

2

Future Expenses

3

Calculate all assets

5

Major Functions

9

Term Insurance

10

Annual Renewable & Convertible Term

11

Decreasing & Level Term

12

Deposit Level Term Insurance

12

Modified Premium Whole Life

13

Cash Value Insurance

13

Whole Life Insurance

13

Straight Life/Limited Payment

14

Modified Whole Life Policy

14

Preferred Risk Policies

14

Interest-Sensitive Whole Life

15

Universal Life Insurance

15

Modified Endowment Contract

18

Adjustable Life Contracts

18

Variable Life Insurance

19

Survivorship Life Insurance

21

Single Premium Life Insurance

21

Endowment Insurance

23

Blended Policies

24

Family Protection Blended Policies

24

Credit Life Insurance

25

Travel Life Insurance

25

Choosing an Insurance Company

27

Children’s Insurance Needs

28

Life Insurance

28

Are There Any Advantages?

29

Health Insurance

30

Chapter 2: Health Insurance

31

Presented Bills

32

Eroded Consumer Healthcare Confidence

38

Medicare

38

  Medicare Part A

39

  Medicare Part B & Medicare Part C

40

  Medicare Part D

41

State Universal Health Care Programs

41

Legislation

41

Affordable Health Care Act

42

  2010-2011

42

During 2011

43

  Effective in 2012

44

  Effective in 2013

45

  Effective in 2014

46

  Effective in 2015 & Effective in 2018

47

Benefits by Groups

48

  Benefits for Children

48

  Benefits for Young Adults

49

  Benefits for Early Retirees

50

  Benefits for Senior Americans

51

  Benefits for Minorities

52

  Benefits for Disabled Americans

53

  Benefits for Veterans and Military Personnel

54

  Benefits for Small Businesses

54

Where Are We Headed?

56

Incidental Health Care Protection

59

Dread Disease insurance

59

Hospital Indemnity Insurance

59

Dental Policies

59

Health Coverage for Overseas Travelers

59

Blanket Health Insurance

60

Group Credit Health Insurance

61

Chapter 3: Disability Insurance

62

The Need for Disability Insurance is Greater than you Think

63

Why Not Replace 100 Percent of the Family Income?

65

Determining the Amount of Coverage Needed

65

Social Security Does Not Supply the Income a Policy Will

66

Worker’s Compensation

67

Degrees of Disability Affects Policies & Programs

68

How Soon Should Disability Policy Benefits Begin?

69

Determining the Duration of Policy Benefits

70

Managing the Disability Income Benefits

70

Finding the Right Disability Policy

71

Employer-Provided Disability Coverage

71

Association Group Disability Insurance

72

Individual Coverage

74

Marketing Disability Income Products

76

Description of the Optional Provisions

77

  Waiver of Premium/Non-occupational Provision

77

  Transplant/Rehabilitation/Non-disabling/Preexisting/Free-Look

78

Common Riders

78

  Return of Premium Rider

78

  COLA/Social Security/Purchase Option Rider

79

  Residual Disability Income/Family Income Rider

80

  Accidental Death and Dismemberment Rider

80

Occupational Classifications

81

Special Circumstances

82

Is underwriting necessary?

82

The Insurance Producer’s Role in Underwriting

83

The Underwriting Process

84

Moral & Morale Hazards

86

The Underwriting Decision

87

Social Insurance/SSDI & SSI

88

Application for Social Security Benefits

90

Defining Substantial Gainful Activity (SGA)

90

Residual Functional Capacity (RFC)

91

Life and the Application

91

Laboratory/Supplemental Security Income (SSI)

93

Who is eligible for SSI?

93

Commonly Asked Questions

94

Chapter 4: Pet Insurance

96

North American Pet Health Insurance Association (NAPHIA)

96

Total U.S. Pet Industry Expenditures

96

Breakdown

96

Policy Exclusions

97

Considerations

98

Pet Insurance Model Act Key Elements

100

NAIC Model Law

100

Table of Contents Section/ 1. Short Title

101

Section 2. Scope and Purpose/Section 3. Definitions

101

Section 4. Disclosures

103

Section 5. Policy Conditions

105

Section 6. Sales Practices for Wellness Programs

106

Section 7. Insurance Producer Training

107

Section 8. Regulations/Section 9. Violations

107

Chapter 5: Planning for Retirement

109

Pre-Planning

109

Retirement Funding

110

How Much Money Will be Needed in Retirement

111

Annuities are issued by Insurance Companies

112

Parties to an annuity contract

113

The Insurer/The Contract Owner

114

The Annuitant/The Beneficiary

115

Annuity Development

116

Annuity Investment Options/Immediate Annuities

118

Immediate Variable Annuities

120

Using Variable Annuities for Retirement Planning

121

Deferred Annuities

124

Equity-Index fixed Annuity

125

Accumulation Annuity/ Which annuity is best?

126

What is Annuity Annuitization?

127

Why Annuitize?

130

Bailout Provision

132

What are Some Annuity Advantages?

132

FDIC

133

No-load or Commission-free

137

Avoidance of probate

138

Disadvantages

138

Surrender charges

139

Guaranteed death benefit

140

Pension Plans

141

Defined contribution plan

142

Longevity Affects Insurance and Underwriting

143

Long-Term Care Insurance

145

Defining Long-Term Care

145

Determining the Necessity

145

Defining LTC Policy Benefits

148

  Skilled Nursing Facility Care

148

  Intermediate/Custodial Nursing Care

148

Long-Term Care Insurance Policies

149

Medicare-certified agency coverage

152

Medicare’s Part A and Part B

153

Gaps in Medicare Hospice Coverage

153

Types of Care Facilities/Qualifying for a Policy

155

No Policy Covers Everything

156

Activities of Daily Living

158

Tax-Qualified Long-Term Care Contracts

158

Specific Definitions

159

Understanding the Difference in Benefit Triggers

160

Federal Criteria

160

Assessing the Need/Realistically Speaking

161

Asset Inventory

163

Liabilities

164

LTC Applicable Estate Planning Tools

165

Asset Transfer

165

Government Sponsored Programs

166

Reverse Mortgages

167

Paid Family Members

170

Accelerated Life Insurance Benefits

170

The Largest Payer of LTC Benefits is Medicaid

171

Asset Transfers for Medicaid Eligibility

172

Any Income Available

174

Chapter 6: Paying for College

175

Suggestions for saving for college

175

Tuition and fees/Room and board

176

Personal expenses/Books and Supplies/Travel and transportation

177

Estimating College Expenses

177

How much does a family need to save?

178

What is the best way to invest for college?

179

Deciding which savings vehicles to use

179

Bank Accounts/Certificates of Deposit (CDs)

180

529 Plans

181

Typical CDs

182

College Savings Bank

183

Bonds

184

Life Insurance

185

Annuities/Annuity Options

186

  Single-Pay Deferred Fixed Annuity

186

  Accumulation Annuity/Two-tiered annuities

186

  Wrap-Around Annuity/CD-like Annuities

187

Mutual Funds

188

UGMAs or UTMAs

189

2503(c) Minor’s Trust/Prepaid Tuition Plans

189

Financial Aid

191

Keep College Expenses Down

192

AP Courses & Exams in High School

193

The Family Plan/Alumni Discount/Attending Community College

193

Chapter 7: Integrating Insurance with Financial Planning

194

Life Insurance and Wills

194

Codicil

195

Using a Lawyer

196

Homemade Wills/Joint Wills

198

Rule of Revocation

199

Probate/Living Wills

200

Health-care durable power of attorney/Health-care proxy

201

Living Trusts

201

Homemade Trusts/Funded Trusts

203

Revocable Living Trusts

205

Avoiding Probate/Revocable Living Trust Disadvantages

207

Power of Attorney

208

Guardians, Conservators & Committees

209

Irrevocable Living Trusts

210

Types of Irrevocable Living Trusts

212

Uniform Gifts to Minors

213

Testamentary Trusts

214

Combination Trusts

215

Trust Record Keeping/Trustees

216

Planning for Death

217

Joint Accounts

218

Choosing an Attorney

219

Special Provisions

220

Beneficiary Designations

224

Types of Estates

225

Special Agreements/Domiciles and Property Ownership

226

Gifting & Other Property Disbursement

229

Following Legal Procedures

235

Insurance Policies Transfer Through Contract Designation

237

Selecting Trustees & Other Representatives

238

Settling the Estate after the Testator’s Death

241

Delays

243

Postmortem Management

245

The Gross Estate

248

Insurance for Funeral Planning and Final Expenses

250

Chapter 8: Insurance Ethics

253

The definition of ethics

253

Agent Liability

254

Annuity Best Interest Standards

256

Disclosure Obligation

260

Conflict of Interest Obligation

263

Documentation Obligation

267

Components of Suitability Obligations

268

What are Ethics?

269

Our Past Becomes Our Present

270

Who Determines Ethics?

271

Ethical Decisions

272

Promoting Ethical Behavior

273

Egoism versus Egotism

276

What is the scope of ethics?

277

What does it take to be a moral person?

278

“What do I want my legacy to be?”

279

  EXAMPLE #1

280

  EXAMPLE #2

281

What are our responsibilities to other moral persons?

281

Selling Ethically

283

Education

283

Laying Out Policy Benefits & Limitations

283

    Full Disclosure

284

Policy Replacement

286

  Why would an agent replace their own business?

286

When the Agent Allows Misconceptions

287

When Premium Appears Too High

289

Obtaining Proper Signatures

289

Keeping in touch after the Sale

289

Selling the “Fast Buck” Items

290

Commingling Funds

291

Following Regulations

292

Competency

293

  Simultaneous representation

294

Financial Strength of an Insurer

295

Admitted Assets/Consolidated Assets

296

Investment Grade Issues

297

Capital Ratio

298

Net Premium Income

298

Surplus Reinsurance

298