Term Life Insurance

Course Description
Although most Americans understand that life insurance provides critically important financial protection, many people remain uninsured or lack sufficient coverage, mistakenly believing that insurance is too expensive and citing other financial priorities. However, one popular type of life insurance—term life—can help individuals obtain affordable insurance protection for temporary insurance needs.

This course takes a comprehensive look at the characteristics of term life insurance, including its renewability and conversion features, the types of riders that can be added to customize a policy, and the differences between level, decreasing, and increasing term life. It examines important life insurance concepts that are common to all types of term life insurance policies, such as beneficiary designations, settlement options, and taxation issues. The course also explores the many uses of term insurance in the individual and group market, as well as the factors to consider when deciding whether to purchase term life insurance protection.

The course includes the following chapters:

  • The Importance of Life Insurance
  • Term Life Insurance Characteristics
  • Policy Provisions and Riders
  • Other Uses of Term Life Insurance
  • Taxation of Term Life Insurance
  • Term Life Suitability and Strategies

Course Objectives
This is an intermediate level course. Upon completion, students will be able to:

  • understand the various misconceptions about life insurance that prevent people from purchasing coverage
  • compare and contrast term life insurance and permanent life insurance
  • understand how a term life insurance policy’s renewal option works
  • explain how a term life insurance policy may be converted to a permanent life insurance policy
  • describe the difference between attained age and original age conversion
  • compare and contrast level term, decreasing term, and increasing term insurance
  • identify the basic policy provisions that are normally part of a term life insurance policy
  • list the most popular additional benefits that can be added by rider to a term life insurance policy
  • describe the exclusions that a life insurance policy may contain
  • describe the characteristics of group term life insurance
    understand the purpose of credit life insurance
  • describe the income tax treatment normally given to life insurance premiums and death benefits
  • understand the different strategies that can be used to incorporate term life insurance into a comprehensive insurance plan



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