Financial Protection with Insurance

Course Description & Objectives

Of course, it is necessary to financially protect oneself during all phases of adulthood, but typically we think of retirement when it comes to financial protection. Economic realities become more pronounced when income is changed by retirement. When there is no longer a regular income from a job, finances change. For individuals who saved enough to have the same income initially during retirement, it may seem like there will be no problems, but as time goes by that may no longer be true. Outside influences can change an adequate income to an inadequate income with the passage of time.

Insurance agents must understand the elements of insurance that help their clients have a financially secure retirement. This course addresses the financial issues people face in retirement, both initially and long-term. This course focuses primarily on the influences that are not always obvious to the newly retired individual and their agents, including long-term care requirements, the loss of spending power over time, and changes in financial expectations.

The first chapter gives an overview of the financial requirements of retiring, including the effects COVID-19 has had on the insurance industry. The United States has not had to deal with the severe effects of inflation for several decades, but inflation still plays a role. That is briefly discussed.

Primarily agents will be working with annuities, including individual retirement accounts (IRAs) and how they affect their clients. One aspect that many people overlook is the effects the SECURE Act has had on retirement planning. This 2019 Act affects how life insurance products are used for retirement planning. Agents must understand the effects and how to work with them. Many insurance producers are estate planning specialists, so they especially must consider how this has and will affect the plans currently in effect and the plans that are being created.

Life insurance is of course used to protect the people we love, but life insurance is also used in retirement and estate planning. This is covered in this course. An aspect that should never be overlooked is how annuities and life insurance might be used for money laundering. That topic is extensively covered in this course, including antimony laundering requirements (ALM).

Chapter 4 is an in depth look at the types of annuities, advantages, and disadvantages of using annuities at all ages, but especially for retirement purposes. The NAIC Annuity Best Interest recommendations are discussed. This chapter is best utilized by the experienced agent, but it will benefit even new agents, although new agents may need to read it twice to get the full value of the information.

Chapter 5 looks at health insurance. This has been a topic that has dominated the news as the Affordable Care Act has gone through the courts, experienced changes, and become increasingly popular with Americans, especially with the advent of COVID-19.

The final chapter covers ethics. Of course, ethics should be known by every insurance producer, but reviewing the various phases of ethics is always appropriate. Agents (and really everyone) knows it is wrong to lie, cheat, or steal, yet every year agents are fined for various hues of doing exactly that.

Course Objective

The course objective of Financial Protection is simple: to create better insurance producers through increased education. This course is primarily aimed at agents who have some experience, but any agent will benefit from it. Those who are new to the profession might have to read some chapters twice, particularly the one on annuities, since parts of that chapter are very detailed. When insurance producers finish this course they will have learned something new, even if experienced.