Term & Universal Life
Table of Contents
Chapter 1: Defining Life Insurance |
6 |
|
|
Basic Concepts |
6 |
|
How Much is Enough? |
7 |
|
Calculating Expenses |
8 |
|
Another calculating method |
10 |
|
An Emergency Fund |
11 |
|
Child-Care Expenses |
11 |
|
Educational Fund |
11 |
|
Debt Repayment |
12 |
|
Coming to a Conclusion |
12 |
|
Insurance Companies Measure Risk |
13 |
|
What Type of Life Insurance is Appropriate? |
14 |
|
What Will the Insurance Cost? |
15 |
|
Term Insurance |
16 |
|
Reentry Level Term |
18 |
|
Level Decreasing Term Insurance |
19 |
|
Permanent Insurance |
20 |
|
Universal Life Insurance Policies |
23 |
|
Universal Life Evolution |
24 |
|
How Do Universal Life Policies Compare to Traditional Plans? |
26 |
Chapter 2: The Life Insurance Contract |
29 |
|
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Defining the Contract |
30 |
|
Policy Application |
30 |
|
Policy Ownership |
31 |
|
Preventing Money Laundering Activities |
32 |
|
Terrorism Produces Insurer Risk |
32 |
|
Legal Requirements Adopted |
33 |
|
Broker-Dealer Requirements |
35 |
|
AML Program Requirements |
36 |
|
Employee training can be in several formats |
37 |
|
Know Your Customer (KYC) |
39 |
|
Compliance |
39 |
|
Suspicious Activity Reports Filing Requirements |
40 |
|
A Change in Thinking |
40 |
|
Three stages of money laundering |
41 |
|
A Global Problem |
42 |
|
Covered Products |
43 |
|
Nine Identified ML Methods |
45 |
|
Money Laundering Indicators Not Unique to Insurance Products |
47 |
|
Policyholder Characteristics and Behaviors |
48 |
|
A Known Criminal or Criminal Associate or Relative |
50 |
|
Erratic or Abnormal Use of Policies |
50 |
|
High Premiums Compared to Verifiable Income |
51 |
|
Lack of Concern for Charges or Costs |
51 |
|
Undue Interest in Payout Options |
51 |
|
Change of Beneficiary |
52 |
|
Insurance on Assets that Appear Inconsistent with Income |
52 |
|
Early or Suspicious Claims |
52 |
|
Product Characteristics and Maintenance |
54 |
|
Customer Due Diligence (CDD) |
55 |
|
In Conclusion |
57 |
Chapter 3: Policy Features and Provisions |
59 |
|
|
Premiums / Policy Options |
59 |
|
Nonforfeiture Options |
59 |
|
Dividend Options |
60 |
|
Settlement Options |
61 |
|
State Required Provisions |
62 |
|
Incontestability |
63 |
|
Misstatements in the Application |
64 |
|
Deferment Clause |
64 |
|
Loan Values |
64 |
|
Grace Periods and Reinstatement |
65 |
|
Allowed Policy Provisions |
66 |
|
Suicide / Aviation |
66 |
|
War |
67 |
|
General Provisions |
67 |
|
Deduction of Indebtedness and Premium Refund |
67 |
|
Change of Beneficiary |
67 |
|
Assignment |
68 |
|
Beneficiary Designations |
68 |
|
Policy Payments |
70 |
|
Cash Values |
70 |
|
Dividends / Proceeds |
71 |
|
Special Clauses |
72 |
Chapter 4: Contract Use |
74 |
|
|
Group Insurance Principles |
74 |
|
Eligible Groups |
74 |
|
Single Employer Groups |
74 |
|
Multiple Employer Trusts (METS) |
75 |
|
Unions, Associations, and Other Groups |
75 |
|
Creditor-Debtor Groups |
75 |
|
Underwriting Advantages |
76 |
|
Keeping Current with Business Needs |
77 |
|
The Informed Consumer |
78 |
|
Providing a Quote |
78 |
|
The Contract Participants |
80 |
|
The Insurer |
80 |
|
The Insured |
81 |
|
Insurance Contract |
81 |
|
Underwriting and Rating |
82 |
|
Finance |
82 |
|
A Public Interest |
83 |
|
Key Person Insurance |
83 |
|
Buy-and-Sell Agreements |
84 |
|
The Key Person Principle |
85 |
|
Insurable Interest for Life Insurance |
86 |
|
Health Insurance on Key Employees and Owners |
87 |
|
The Small Company’s Exposure |
89 |
|
Loss of the Small Business Owner |
89 |
|
Planning Ahead for Death or Disability |
93 |
|
Insuring Entities |
94 |
|
Private and Government Insurance |
94 |
|
Private Insurers |
94 |
|
Life Insurance |
95 |
|
Property and Liability Insurance |
95 |
|
Government Insurance |
96 |
|
Voluntary Government Insurance |
96 |
|
Compulsory Government Insurance |
96 |
|
Mutual Companies |
97 |
|
Assessment Mutuals |
98 |
|
Non-assessable Mutuals |
100 |
|
Conversions |
100 |
|
Reciprocal or Inter-Insurer Associations |
101 |
|
Stock and Mutual Underwriting |
102 |
|
Factory Mutuals |
102 |
|
Superior Agents and Brokers |
104 |
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United Insurance Educators, Inc.
8213 352nd Street East
Eatonville, Washington 98328-8638
Email: mail@uiece.com