Lifecycle Financial Planning - Calculating the Life Insurance Need & Basic Planning Concepts

Overview

Life insurance is a unique product. While many use it to protect their loved ones, it may also be used to gift money to charity, transfer for a business interest, or pay off debts. Life insurance is one of the more useful financial products that a client can own. However, the amount of life insurance that a client needs can change over time and can vary drastically depending on how it is being used. We often need to recalculate the life insurance need multiple times throughout a client’s lifetime. In this course, we will explore some basic planning techniques involving life insurance as well as some approaches to calculating the actual life insurance need. Utilizing real-life examples and discussion, we will compare the advantages and disadvantages of each approach. We will also discuss when an ILIT may come in handy, how life insurance can supplement retirement benefits, and the taxation of life insurance for both employers and employees.

Highlights

• Basic Types of Life Insurance
• Human Capital & Life Insurance
• Human Life Value Approach
• Multiple of Earnings Approach
• Needs Based Approach
• Special Uses of Life Insurance
• Taxation of Life Insurance
• Key Person Life Insurance
• Buy
• Sell Agreements

Prerequisites

Basic life insurance product knowledge

Designed For

CPAs, financial advisors, and insurance agents that are looking to improve their knowledge of how life insurance may be used to satisfy a variety of client needs.

Objectives

• State the basic differences between term, whole, variable, and universal life insurance
• Identify the steps in the Human Life Value Approach to calculating the life insurance need
• Recognize how employee life insurance benefits are taxed
• Recognize how an ILIT may be used in basic estate planning
• State how life insurance may be used to enhance the benefits of a retiring employee
• Recognize the different types of buy
• sell agreements

Preparation

None

Notice

This is a self-study/on demand course offered by a 3rd party vendor. Course access information will be emailed directly to you by Peters Professional Education (PPE). The course expires one year from the purchase date.