Lesson 12 3 Life Insurance Introduction Life insurance

Lesson 12. 3 Life Insurance Introduction Life insurance is unique Most insurance protects the person who is insured Life insurance protects those left behind if the insured person dies It ensures your family and possessions – not you! Life insurance has been a corner stone of sound financial planning for many years July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 1

Lesson 12. 3 Life Insurance Objectives You should be able to do the following after completing this lesson. • Explain why people purchase life insurance • Discuss the life expectancy of women and men • Describe the two basic types of life insurance • Summarize how term and permanent life insurance works • Discuss who needs to purchase life insurance • Demonstrate how much life insurance you need using the rule-of-thumb and needs-approach methods • Identify how many companies sell life insurance in the US • Discuss the factors affecting the cost of life insurance July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 2

Lesson 12. 3 Life Insurance 12. 3. 1 – Why Buy Life Insurance? In this section, you will learn • What the life expectancy for men and women in the US is • How life expectancy affects your life insurance needs • What three common reasons for purchasing life insurance are • What the most important asset you have is • Why buying life insurance might not be the best way to save for retirement You will run the following Interactive Example • Investment vs. Insurance Example July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 3

Lesson 12. 3 Life Insurance 12. 3. 2 – Types of Life Insurance In this section, you will learn • What the two basic types of life insurance are • What permanent life insurance is • What term life insurance is • Which type of life insurance typically costs more and why • What the advantages and disadvantages of both term and permanent life insurance are July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 4

Lesson 12. 3 Life Insurance 12. 3. 3 – Who Needs Life Insurance? In this section, you will learn • Whether most people will need life insurance • What factors affect whether or not you need life insurance • When you should determine whether you need life insurance • How age affects the cost of life insurance July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 5

Lesson 12. 3 Life Insurance 12. 3. 4 – How much coverage is needed? In this section, you will learn • What methods are available to help you determine how much life insurance you need • What an insurance agent is and how they can help you • How the Rule-of-Thumb method works • How the Needs Approach works You will run the following Interactive Exercise • Rule-of-Thumb Coverage Amount Exercise July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 6

Lesson 12. 3 Life Insurance 12. 3. 5 – Obtaining Life Insurance In this section, you will learn • What an individual life insurance policy is • What a group life insurance policy is • Why group life insurance is typically term life insurance • When you will have to have a medical examination to get life insurance • What the Medical Information Bureau (MIB) is and what they do • How often life insurance premiums are paid July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 7

Lesson 12. 3 Life Insurance 12. 3. 6 – Selecting a Company and Policy In this section, you will learn • Whom you can purchase life insurance from in the US • How to determine and select a reputable company to buy life insurance from • Why it is important to compare the cost of life insurance from different companies • What affects the cost of life insurance • How often you should review and update your life insurance policy July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 8

Lesson 12. 3 Life Insurance Discussion Questions Is the investment component of permanent life insurance a good way to accumulate money for your retirement? Do women really pay less for life insurance than men and do those who smoke have to pay more for life insurance? July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved 9