Alu 101 Chapter 9: Life Insurance Products, Marketing And Distribution

Front 1

What are 5 general customer needs/

Back 1

1. protect or replace economic value

2. pay off inevitable last expenses

3. provide meaningful executive benefits

4. transfer assets efficiently

5. accumulate tax favored investment account

Front 2

As both a legal and financial product a life insurance policy is a contract of ____

Back 2

promises

Front 3

What are the major components when determining pricing of premiums

Back 3

1. Mortality

2. expenses

3. investments

4. Profit

Front 4

Unlike whole life plans, term plans generally have no ____ or ____ value component

Back 4

savings or cash

Front 5

Two key features of term life insurance that help make it valuable include

Back 5

renewability and convertibility

Front 6

Modified premium or modified coverage us appropriate for what groups?

Back 6

Juveniles and young insured w. limited income and budget and lives of owner of new businesses are carrying a large debt load and are reinvesting the business profits into the business' growth

Front 7

List some interest sensitive products

Back 7

UL

intermediate premium whole life

Interest sensitive whole life

Variable life

Equity indexed UL

Front 8

COLI typically involve multiple lives and are typically used to fund:

Back 8

1. non-qualified deferred comp plans designed as 401K

2. supplemental employee retirement plans

3. or other deferred compensation plans

Front 9

Under normal qualified pension plans, highly compensated employees are limited to the

Back 9

Contribution limits they can make yearly

Front 10

Under waiver of premium rider, premiums are not paid by the owner but the cash value continues to grow as if they were paying. What is the definition of disability that one must meet?

Back 10

inability to perform ones own occupation for 24 mths, then for any occupation for which the insured might become rehabilitated or trained

Front 11

When underwriting Waiver of premium, what must also be considered when evaluating this rider besides medical hx?

Back 11

occupation and avocation

Front 12

The most significant living benefit rider is the

Back 12

Accelerated benefit rider

Front 13

What three characteristics trigger receiving benefits from the ABR

Back 13

Terminal illness

Critical Illness

LTC

and can generally be triggered by the inability of the PI to perform 2 ADL's or being confined to a nursing home

Front 14

Marketing efforts typically begin ___ to ___ days before product launch

Back 14

30-60

Front 15

Target marketing research is based on

Back 15

demographics, gender, age, socioeconomic data, as well as psycho graphic reasons a person is likely to purchase insurance

Front 16

What are advanced sales concepts?

Back 16

Different ways to market life insurance to show their flexibility (

Front 17

What is a captive or career agent?

Back 17

employees of a specific insurance carrier and exclusively sell the products the carrier offers

Front 18

What are independent producers

Back 18

Individuals that are not aligned with one particular insurance carrier they pick and choose who they will use based on product competitiveness, service, underwriting , and compensation

Front 19

What is a general agency?

Back 19

a service that caters specifically to the producer

Front 20

What additional support is offered to the producers?

Back 20

Advanced sales specialists

business case managers

dedicated underwriting teams

back office support staff

Front 21

What are producer groups?

Back 21

comprised of independent producers and are created as a way to use the institutional strength of a larger organization

Front 22

Why are producer groups usually formed>

Back 22

unhappy w/ previous selling arrangement

looking for a way to get increased compensation

want a stake of ownership/equity in the company for whom the are working

want a higher level of access to a wider range of life insurance carriers