IGIE 951 Life Course Outline

Life Insurance Basics

Lesson One: Life Insurance: Purpose, Functions, and Providers

  • Why do people buy life insurance?

  • Transferring economic loss

  • The risk of premature death

  • The life insurance industry

  • The financial services industry

  • Insurance providers

Lesson Two: Life Company Operations

  • Line units Actuarial, Investments, Marketing, Underwriting, Reinsurance, Customer Service, Claim Administration

  • Staff units Accounting, Information Systems, Legal, Human Resources

Lesson Three: Product Development and Distribution

  • Product development

  • Idea generation and screening

  • Comprehensive business analysis

  • Technical design

  • Implementation

  • Product introduction

  • Sales monitoring and review

  • Distribution systems

  • Agency distribution system

  • Ordinary agency system

  • Multiple-line agency system

  • Home service distribution

  • Brokerage distribution

  • Group insurance sales

  • Direct response system

  • Location-selling system

  • Worksite marketing

  • Bank-sold insurance distribution system

Lesson Four: Pricing Life Insurance Products

  • Review of basic insurance terms

  • Key pricing factors

  • Mortality rates

  • Investment income

  • Expenses

  • Gross premium

  • Reserves

  • Net amount at risk

Lesson Five: Life Insurance Products

  • Term insurance

  • Types of term insurance

  • Term insurance: Renewability and convertibility

  • Traditional whole life permanent insurance

  • Policy reserves and cash value

  • Premium-payment schedules

  • Other types of permanent life insurance

  • Modified whole life insurance

  • Joint whole life insurance

  • Universal life insurance

  • Interest-sensitive whole life insurance

  • Variable life insurance

  • Variable universal life insurance

  • Supplementary benefit riders

  • Guaranteed insurability rider

Lesson Six: The Insurance Policy

  • The application

  • Insurable interest

  • The policy’s face page

  • Policy provisions

  • Incontestability

  • Grace period

  • Nonforfeiture options

  • Policy loans

  • Misstatement of age

  • Reinstatement

  • Settlement options

  • Group life insurance