Seeking Security
Table of Contents
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Chapter 1: In the Beginning |
1 |
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Organization Steps |
2 |
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Three Basic Questions |
2 |
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Financial Profile |
3 |
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Liquid/Non-Liquid Assets |
3 |
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Personal Assets |
4 |
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Life Stage |
4 |
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Chapter 2: Establishing A Financial Picture & Net Worth |
7 |
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Net worth |
7 |
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Lifestyle |
7 |
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Save for it |
8 |
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Forced Savings |
9 |
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Undue Risk |
10 |
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Risk Takers |
11 |
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Questions to ask |
12 |
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Getting the basics |
13 |
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Financial Resources |
13 |
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Net Worth Worksheet |
15 |
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Cash Flow Journal |
18 |
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Chapter 3: Establishing Goals |
19 |
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Objectives versus goals |
19 |
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Five categories of goals |
20 |
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Set money aside |
21 |
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Charting Strategies |
22 |
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Goals tend to focus on: |
22 |
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Risk Protection: chart |
23 |
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What If the Unexpected Happens? |
24 |
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Chapter 4: Suitable Recommendations |
26 |
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Put and Take Account |
26 |
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Asset allocation |
27 |
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Three primary asset classifications |
27 |
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Long Term Investing |
28 |
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The Self-Taught Investor |
29 |
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Making Decisions |
29 |
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Five factors to consider in a financial investment. |
31 |
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Risk and Return |
31 |
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Current Income |
31 |
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Appreciation |
31 |
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Depreciation |
32 |
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Types of Risk |
33 |
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Inflation: The Silent Reducer |
33 |
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Deflation |
34 |
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Business Risk |
34 |
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Interest Rate Risk |
35 |
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Market Risk |
35 |
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Illiquidity Risk |
35 |
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Minimizing Risks |
36 |
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Six basic types of investments |
37 |
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Hard assets |
38 |
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Deflation/Inflation |
39 |
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Investing is a personal matter |
40 |
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Chapter 5: Emergency Funds |
43 |
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Certificates of Deposit |
44 |
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Yield/Compounding |
45 |
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Money Market Accounts |
46 |
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Chapter 6: Avoiding Debt |
48 |
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Not spending money takes discipline |
49 |
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Up front charges |
50 |
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Financial means of repayment |
51 |
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Credit reports |
52 |
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Basic credit card terms |
53 |
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When 20 percent is not really 20 percent |
54 |
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Adjusted Balance Method & Previous Balance Method |
54 |
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Average Daily Balance Method |
55 |
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Chapter 7: Safety Through Insurance |
56 |
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Risk Management |
56 |
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Errors & Omissions (E&O) |
56 |
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The Patient Protection and Affordable Care Act |
57 |
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Risk Adjustment and the Ability of States to Limit Insurer Payments |
58 |
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What if Americans Lost the ACA Benefits? |
59 |
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If it were repealed: |
59 |
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Fewer Uninsured Americans |
60 |
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Preexisting Conditions |
60 |
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Financial Assistance and Eligibility Standards |
61 |
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Data Matching Inconsistencies |
61 |
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Essential Health Benefits (EHB) |
62 |
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Definition of a “Typical” Employer Plan |
62 |
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The Original Plan |
63 |
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2012 Changes |
64 |
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2013 Changes |
65 |
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2014 Changes |
66 |
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2015 Changes |
67 |
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2016 – 2020 Changes |
68 |
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Long-Term Care |
68 |
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Defining Policy Benefits |
69 |
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Daily Benefit/Waiting Period/Maximum benefit period |
70 |
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Home care |
71 |
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Homebound |
71 |
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Prior Hospitalization /Inflation Protection/Preexisting Conditions |
72 |
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Level Premium/Waiver of Premiums |
73 |
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Care Levels |
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Skilled Care/Intermediate Care/Custodial Care |
73 |
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What Benefit Levels Should Be Recommended? |
74 |
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Policy Limitations |
75 |
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The Future |
77 |
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Chapter 8: Disability Insurance |
80 |
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Oversell |
81 |
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Possible solutions for a business when a partner is disabled |
82 |
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Basic Business Guidelines |
83 |
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Elimination or Waiting Period |
84 |
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Durational Periods |
84 |
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Residual Rider |
85 |
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Guaranteed Renewable |
86 |
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Chapter 9: Life Insurance |
87 |
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What Is A Life Insurance Policy? |
87 |
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Insurer/Insured |
87 |
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Life Insurance Needs: worksheet |
89 |
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Planning for The Future |
90 |
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Premiums/Peril/Risk |
91 |
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Life Insurance Trust |
93 |
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Clarifying the client’s objectives |
94 |
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Life Insurance Trusts |
95 |
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Co-Trustees |
95 |
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Types of Life Insurance: Term |
96 |
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Four categories of Term |
96 |
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Whole Life Insurance |
96 |
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Straight Life/Limited Payment Life |
97 |
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Modified Whole Life/Preferred Risk Whole Life |
97 |
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Endowment Insurance Policies |
97 |
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Universal Life Insurance Policies |
97 |
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Loads/Stop-and-Go features |
98 |
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Variable Life Insurance Policies |
98 |
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Survivorship Life Insurance |
99 |
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Joint-And-Survivor Life Insurance |
99 |
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Participating Policy |
100 |
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Single Premium Whole Life Policies |
100 |
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What Are Tax-Deferred Annuities? |
101 |
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Annuity Defined |
102 |
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Chargebacks |
103 |
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The Annuity |
103 |
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Two safety features |
104 |
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The Reinsurance Network |
105 |
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Bailout Options/Limited Surrender Penalties |
105 |
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Index Rate Annuity/ Two-tiered Annuities |
106 |
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Ratio of the Investment/Exclusion Ratio |
107 |
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Why Owners Bought an Annuity |
108 |
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Annuity Contract Statistics |
108 |
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Top Sources of Funds for Purchasing Annuities |
108 |
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Annuity considerations |
109 |
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Per Stripes |
112 |
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Beneficiary-designated money |
112 |
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To recap: |
113 |
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Three basic types of annuity contracts |
114 |
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Single Pay Deferred Fixed Annuity |
115 |
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Interest First Rule |
115 |
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Annuity payout options |
116 |
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Recap definitions: |
116 |
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Wrap-Around Annuity aka Investment Annuity |
118 |
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CD-Like Annuities |
118 |
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Individual Retirement Accounts (IRA) |
120 |
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The Economic Growth and Tax Relief Reconciliation Act of 2001 |
120 |
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Company Ratings |
121 |
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Admitted Assets/Consolidated Assets/Investment Grade Assets |
122 |
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Owner’s Equity/Contingency Reserves |
123 |
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Unassigned or Permanent Surplus/Common Stock |
123 |
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Additional Paid-In Capital or Contributed Surplus |
123 |
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Mandatory Securities Valuation Reserve |
123 |
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Capital Ratio/Net Premium Income/Surplus Reinsurance |
124 |
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Chapter 10: Protecting Assets |
128 |
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Six different types of Coverage |
128 |
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Bodily Injury Liability |
128 |
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Property Damage Liability & Medical Payments Coverage |
129 |
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Uninsured Motorists/ Collision |
130 |
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Comprehensive Physical Damage/ No-Fault Laws |
131 |
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To Tell or Not to Tell |
132 |
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Insuring Our Greatest Investment: Home Sweet Home |
132 |
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Form 1 |
133 |
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Form 2 |
133 |
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Form 3 |
134 |
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Form 5 |
134 |
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Form 4 |
134 |
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Form 6 |
134 |
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Form 14 |
135 |
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Special Form Liability for Renters |
137 |
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Floaters/Personal Articles Floater |
137 |
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Chapter 11: Looking at Taxes Sensibly |
139 |
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Effective Tax Rate |
139 |
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Marginal Tax Bracket |
139 |
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Agents are sometimes the consumers |
141 |
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Chapter 12: Employer-Sponsored Insurance Benefits |
142 |
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Funeral Benefits & Dental Insurance |
142 |
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Disability Income Benefits/ Life Insurance |
143 |
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Medical Insurance |
144 |
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Characteristics of Group Insurance |
145 |
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Three general characteristics |
145 |
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Contract/Third-party Beneficiaries/Maser Contract |
145 |
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Certificate of Insurance/Certificate of Insurability |
145 |
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Period of Eligibility/Experience Rating/Class Basis |
146 |
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Adverse Selection |
146 |
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Considerations typically used |
146 |
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Group Plan Incentives |
148 |
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History of Group Health Insurance |
149 |
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Model Bills of the Health Insurance Association of America |
149 |
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National Association of Insurance Commissioners |
149 |
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HIAA Bill |
149 |
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Group health insurance contracts differ from individual contracts |
150 |
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Self-Insured Plans |
151 |
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Specific Eligible Groups |
152 |
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Adverse Selection/Taft-Hartley Trusts |
152 |
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Multiple-Employer Trusts (METs) |
153 |
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Types of Medical Plans |
154 |
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Third-Party Administrator/In-house Administration |
156 |
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Health Maintenance Organizations (HMOs) |
157 |
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Three types of HMOs |
157 |
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Model Group Life |
158 |
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Contractual Provisions/NAIC Requirements |
159 |
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Situs |
160 |
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Level-premium/Unit purchase/Wholesale life/Term |
161 |
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Employees are separated into class |
161 |
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Beneficiary designations |
162 |
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Four different settlement options |
163 |
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Group Contract Termination |
164 |
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Coverage for employees ends when: |
164 |
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Pension Plans |
165 |
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ERISA(Employee Retirement Income Security Act) |
166 |
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IRC (Internal Revenue Code) |
167 |
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Flat Amount Formula/Flat Percentage Formula |
168 |
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Flat amount unit benefit formula/Percentage Unit Benefit Plan |
168 |
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Pension Benefit Guaranty Corporation (PBGC) |
169 |
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Fiduciaries/Plan administrators |
169 |
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The Insurance Consultant |
169 |
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Flexible Spending Accounts (FSA) |
170 |
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After Retirement |
171 |
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Income & Longevity Concerns |
173 |
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Chapter 13: Saving Adequately for Retirement |
177 |
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Rate of return |
178 |
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Monthly Income Options |
180 |
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Annuitant |
180 |
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“Pay yourself first” |
181 |
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Social Security Income |
182 |
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Chapter 14: Estate Planning |
183 |
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Testator/Executor |
184 |
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Special Provisions |
185 |
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Residuary Clause |
185 |
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Beneficiary arrangements/Spendthrift Clause |
186 |
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Property Distribution |
187 |
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Care for pets/Ademption |
188 |
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Family and public relationships/Property |
189 |
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Real property/Personal property/Fee-Simple Estate/Life Estate |
190 |
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Remainderman/Vested Interest/Contingent Interest |
191 |
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Reversionary Interest |
191 |
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Antenuptial Agreements/Legal Owner |
192 |
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Beneficial Owner/Equitable Title |
192 |
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Domiciles |
193 |
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Concurrent Ownership/Tenancy in Common |
194 |
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Undivided Interest/Partition Sale/Tenant-In-Common |
194 |
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Community Property/Separate Property/Mutual Will |
195 |
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Gifting and Other Property Disbursement |
196 |
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Donor/Donee |
196 |
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Direct Gifts/Third-Party Transfers/Indirect Gifts |
197 |
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Sham Gift |
197 |
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Preferential/Dower/Dowager/Courtesy/Statutory Share |
199 |
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Primary Beneficiary |
199 |
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Per Stirpes/Specific Bequests/Per Capita |
200 |
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Secondary Beneficiaries/Tertiary Beneficiaries |
201 |
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Following Legal Procedures |
202 |
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Self-Proving Wills |
202 |
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Prudent-Man Rule |
203 |
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Breach of Duty/Common Trust Funds/Guardian/Ward |
204 |
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Property Transfers |
205 |
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Location of the Will |
206 |
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The Will as A Legal Document |
207 |
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Last Will and Testament/Codicil |
208 |
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Holographic Will/Nuncupative Will/Living Will |
209 |
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Testamentary Trust |
211 |
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Selecting Trustees and Other Representatives |
211 |
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Executor/Executrix/Administrator/Administratrix |
214 |
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Settling the Estate After the Testator's Death |
214 |
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Community Property Agreement |
218 |
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Postmortem Management falls into seven categories |
220 |
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Chapter 15: Practical Ethics |
224 |
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Defining Ethics |
225 |
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Ethos/Moral Excellence |
225 |
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Why Be Ethical? |
227 |
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Psychological Egoism |
230 |
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What is the scope of Ethics? |
231 |
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What does it take to be a moral person? |
232 |
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Three Questions Addressed |
233 |
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Example #1 |
235 |
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Example #2 & #3 |
236 |
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Example #4 |
237 |
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What Are Our Responsibilities to Other Moral Persons? |
238 |
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Choosing to Sell Ethically |
239 |
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Objectivist Ethics |
240 |
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Human Nature |
242 |
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Can Ethics & Promotional Campaigns be Integrated? |
249 |
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Sympathy versus Empathy (definitions) |
250 |
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Learning to Be Ourselves |
251 |
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Due Diligence |
252 |
|
What does the term, due diligence, actually mean? |
252 |
United Insurance Educators, Inc.
(253) 846-1155