Personal Life Insurance Planning

Personal Life Insurance Planning

Personal Life Insurance Planning examines the type of client data needed to determine minimum life insurance coverage requirements. It identifies the various lump-sum cash needs at the death of a breadwinner and provides guidelines to enable advisers to recommend life insurance in amounts that fully protect clients. It identifies typical surviving family income needs following a breadwinner’s death. Advisers learn to calculate adequate survivor income and appropriate life insurance needed to provide required income. Social Security survivor benefits are discussed, including the Child’s benefit, the Mother’s or Father’s benefit, and Widow’s and Widower’s benefit.

Upon completion of this course, the student should be able to:

  • Understand the importance of basing client insurance requirements on a thoroughgoing analysis of needs.
  • Gather the appropriate client information required to perform an insurance needs analysis.
  • Identify and calculate a client’s family’s lump-sum needsat the death of a breadwinner.
  • Understand the Social Securitysurvivor benefits that need to be considered in analyzing survivors’ needs for life insurance to replace income.
  • Identify and calculate survivors’ incomeneeds during the dependency period, blackout period and retirement period.

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