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