Family Insurance Needs

Table of Contents

 

Chapter One

Life Insurance

How much life insurance do I need?              8

Immediate Expenses                                       10

Future Expenses                                              11

Calculating                                                      13                                

Major Functions                                             19

Term Insurance                                            21

Annual Renewable                                          22

Convertible                                                     22

Decreasing                                                      23

Level                                                               23

Deposit Level Term                                        23

Cash Value Insurance                                  25

Straight Life                                                    26

Preferred Risk                                                 26

Interest-Sensitive Whole Life                        27

Universal Life                                                 28

Modified Endowment Contract                      31

Adjustable Life                                               32

Variable Life                                                   33

Survivorship Life                                            35

Single Premium Life                                      36

Endowment Insurance                                 39

Blended Policies                                             40

Family Protection Blended Policies               41

Credit Life                                                      41

Travel Insurance                                             42

Choosing a Company                                      42

 

Chapter Two

Health Insurance

Introduction                                                    43

Presented Bills                                                45

Medicare                                                        51

Medicare Part A                                              52

Medicare Part B                                             53

Medicare Part C                                             53

Medicare Part D                                             54

State Universal Health Care Programs           54

Legislation                                                     55

  Affordable Health Care for America Act     55

2010-2011                                                       56

During 2011 the following became effective 57

Effective in 2012                                            58

Effective as of 2013                                        59

Effective as of 2014                                        60

Effective 2015                                                 62

Effective 2018                                               62

Benefits by Groups                                       63

  Benefits for Children                                   63

  Benefits for Young Adults                           65

  Benefits for Early Retirees                           66

  Benefits for Senior Americans                      67

  Benefits for Minorities                                  69

  Benefits for Disabled Americans                  69

  Benefits for Veterans and Military

Personnel                                                        70

  Benefits for Small Businesses                     71

Where Are We Headed                               73

Dental Policies                                               75

Incidental health Care Protection               76

Health Coverage for Overseas Travelers   76

Blanket Health Insurance                            77

Group Credit Health Insurance                  77

Disability Insurance                                        78

Pet Insurance                                                79

 

Chapter Three

A Child's Insurance Needs

Life Insurance                                                 81

There are advantages                                      82

Health Insurance                                             82

 

Chapter Four

Planning for Retirement

Pre-Planning                                                   84

Where will the money come from?                85

How much is enough?                                    86

Annuities; what are they?                            87

Annuity Development                                     91

Reinsurance network                                      91

Two-tiered annuities                                       92

Investment Options                                         93

Immediate Annuities                                    94

Payout period                                                  94

  Straight Life Annuity                                    95

  Refund Annuity                                            95

  Joint-and-Survivor Annuity                          95

Immediate Variable Annuities                        96

Using Variable Annuities for Retirement       97

11-point Checklist                                          99

Deferred Annuities                                       100

Equity-Index Fixed Annuity                           101

Accumulation Annuity                                 102

Which annuity is Best?                                   102

What is annuitization?                                    103

Seven-Pay Life Insurance                               105

  Exclusion ratio                                              105

Why would a policyholder annuitized?          107

  Bail-out Provision                                         109

What are some advantages of annuities?        110

FDIC / BIF / SAIF                                          110

Pass-through Insurance                                   111

1035 Tax-free Exchange                                 114

Guaranteed Death Benefit                              117

Are there any disadvantages?                         118

Pension Plans                                                121

ERISA                                                            121

Defined Benefit Plan                                      122

Defined Contribution Plan                              122

ESOPs                                                             123

Long-Term Care Insurance                         124

Why buy a LTC policy?                                 124

Defining Policy Benefits                                126

Long-Term Care Contracts                             127

  Integrated Policies                                        129

  Hospice                                                         131

  Age-rated Policies                                         133

Types of Care Facilities                                  134

Qualifying For a Policy                                  134

No Policy Covers Everything                         135

Activities of Daily Living                              137

Tax-Qualified Long-Term Care Contracts     137

Understanding the Difference in                                           

  Benefit Triggers                                           139

Federal Criteria                                               140

Assessing the Need                                        141

Realistically Speaking                                    141

Asset Inventory                                             143

Liabilities                                                       145

Estate Planning Tools                                     145

Asset Transfer                                                 147

Government Sponsored Programs                  147

Reverse Mortgages                                         148

Paid Family Member                                      150

Accelerated Life Insurance Benefits              151

The Largest Payer of LTC: Medicaid            152

Asset transfers for Medicaid Eligibility          153

Any Income Available                                    155

 

Chapter Five

Disability Insurance

Who needs disability coverage?                     156

Why not practical to 100% of income            158

How much coverage is needed?                     158

Social Security                                               159

  SSDI & SSI                                                   159

Workman's Compensation                          162

Degrees of Disability                                      162

How soon should benefits begin?                   164

How long should benefits last?                       164

Managing the DI Benefits                              165

Where is DI coverage available?                    166

Employer Provide Disability Coverage      166

Association or Group Disability                  168

Multiple employers Trusts                              169

Individual Disability Coverage                    170

  ARDI                                                            170

Uniform Policy Provisions                             171

Approaches to Selling                                     173

Description of Optional Provisions                174

  Waiver-of-premium Provision                      174

  Non-occupational Provision                         175

  Transplant Provision                                     175

  Rehabilitation Provision                               175

  Non disabling Injury Provision                     175

  Preexisting Conditions Provision                 175

  Free Look Provision                                     176

Common Riders                                            176

  Return of Premium Rider                             176

  COLA Rider                                                 176

   Social Security Rider                                   177

  Purchase Option Rider                                  177

Residual Disability Income                            178

Family Income Rider                                      178

Accidental Death & Dismemberment             178

Occupational Classifications                          179

Special Circumstances                                    181

Is Underwriting Necessary?                            181

Adverse Selection                                           182

The Agent's Role in Underwriting                  183

The Underwriting Process                              184

Moral & Morale Hazards                                186

The Underwriting Decision                            188

Social Insurance                                              189

SSDI & SSI                                                    190

Qualifying for SSDI                                      190

Qualifying for SSI                                         190

Following Application for SS Benefits          191

Definition of SGA                                          193

RFC                                                                 194

Life and the Application                                 194

Supplement Security Income                          196

Who is eligible for SSI                                   196

Commonly asked Questions                           197

 

Chapter Six

Paying for College

Introduction                                                    199

Tips for savings for college                            200

Expenses incurred for college                        201

Estimating College Expenses                         202

How much does a family need to save?         203

What is the best way to invest?                   204

Bank Accounts                                                205

Certificates of Deposit                                    205

College Savings Bank                                     208

Bonds                                                              209

Life Insurance                                                 210

Annuities                                                         212

Mutual Funds                                                  214

UGMAs or UTMAs                                        216

2503(c) Minor's Trust                                     217

Prepaid Tuition Plans                                     217

Financial Aid                                                  218

Ways to Keep Expenses Down                     221

AP Courses & Exams                                     221

The Family Plan                                             221

Alumni Discount                                            222

Attending Community College                       222

           

Chapter Seven

Wills, Probate & Trusts

Wills                                                               223

  Intestate                                                        223

  Codicils                                                         225

Homemade Wills                                            228

Joint Wills                                                       228

Living Wills                                                    229

Rule of Revocation                                         230

Testamentary Trust                                         231

Probate                                                           231

Living Trusts                                                 232

Homemade Trusts                                           234

Funded Trusts                                                 235

Standby Living Trust                                      235

Revocable Living Trusts                                 237

  Bypass Trust                                                 238

  General Power of Appointment Trust          238

  QTIP                                                             238

  Irrevocable Life Insurance Trust                  239

  Charitable Remainder Trust                         239

  Charitable Lead Trust                                   239

Avoiding Probate                                          239

Revocable Living Trust Disadvantage           240

Power of Attorney                                          241

Guardians, Conservators & Committees        243

Irrevocable Living Trust                              244

Types of Irrevocable Living Trusts                246

  GRIT                                                             248

Uniform Gifts to Minors                                 249

Testamentary Trusts                                       249

Q-TIP / Q-DOT                                              250

Combination Trusts                                      251

Trust Record Keeping                                     252

Trustees                                                           252

Planning for Death                                          253

Joint Accounts                                                255

Choosing an Attorney                                     257

Special Provisions                                          258

  Spendthrift Clause                                        260

Ademption                                                      262

Real Property & Personal Property                263

  Simple Fee Estates / Life Estate                   264

  Remainderman / vested & contingent          265

Special Agreements                                        265

Domiciles & Property Ownership               266

  Concurrent Ownership                                  267

  JTWRS                                                         267

Gifting & Other Property Disbursement   269

Third Party Transfers                                      271

A Sham Gift                                                    272

Preferential                                                      273

Dower / Statutory Share                                274

Per Stirpes / Per Capita / Specific Bequests   275

Secondary & Tertiary Beneficiaries               276

Following Legal Procedures                           277

Self-Proving Wills                                          277

Property Transfers                                       281

Selecting Trustees & Other Representatives 282

Executor / Executrix                                       285

Administrator / Administratrix                       285

Settling the Estate after Death                        286

Common Property Agreement                        290

Empty or Non-Funded Trusts                         291

Preparation for postmortem managmt.     292

The Gross Estate                                             295

Funeral Planning                                             298

 

Chapter Eight

Divorce

Retirement Accounts                                      300

QDROs                                                           300

Defined Contribution Plans                            301

Defined Benefit Plans                                     302

Property                                                          303

Life Insurance                                                 304

Health & Medical Insurance                           305

Social Security                                                305

Wills                                                               306

 

Chapter Nine

Agent Ethics

Ethics                                                              308

  What are ethics?                                            309

Our Past Becomes Our Present                       311

Who Determines Ethics?                                312

    Virtues                                                        313

Ethics Decisions                                              314

Promoting Ethical Behavior                           316

Egoism versus Egotism                                  319

  What is the Scope of Ethics?                        320

  What does it take to be a moral person?       322

  What do I want my legacy to be?                 323

  EXAMPLE #1                                              325

  EXAMPLE #2                                              326

  What are our responsibilities?                       326

Selling Ethically                                              328

Education                                                        329

Getting Education in a Timely Manner          330

Laying Out Policy Benefits & Limitations     333

  Full Disclosure                                              334

Policy Replacement                                        336

Why would an agent replace their own?        336

When the Agent Allows Misconceptions       338

When Premium Appears too High                 339

Obtaining Proper Signatures                           339

Keeping in touch after the Sale                       340

Selling the “Fast Buck” Items                        341

Commingling Funds                                       342

Following Regulations                                    342

Competency                                                    345

  Simultaneous representation                         346

Admitted Assets                                             348

Consolidated Assets                                        348

Investment Grade Issues                                 348

Mandatory Securities Valuation Reserve       349

Capital Ratio                                                   350

Net Premium Income                                      350

Surplus Reinsurance                                       351

 

 

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, WA 98328

 

Fax: (253) 846-7536

www.uiece.com

 

Email:  mail@uiece.com