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ALU 101 - Chapter 9: Life insurance products, marketing and distribution Questions and Answers 100% Correct | Graded A+ $12.49   Add to cart

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ALU 101 - Chapter 9: Life insurance products, marketing and distribution Questions and Answers 100% Correct | Graded A+

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ALU 101 - Chapter 9: Life insurance products, marketing and distribution Questions and Answers 100% Correct | Graded A+

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  • October 21, 2024
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  • 2024/2025
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  • alu 101
  • ALU 101
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ALU 101 - Chapter 9: Life insurance
products, marketing and distribution

Life coverage - ANSa agreement that protects individuals, households or groups in opposition to
loss of monetary value upon insured dying

CUPS - ANSCommission, Underwriting, products and carrier

Customer needs - ANS1. Guard and/or update financial cost
2. Pay off inevitable closing prices
three. Provide meaningful executive blessings
4. Transfer belongings successfully
5. Acquire tax-favored funding account (coins value account)

Product development - ANS1. Pricing
2. Underwriting
3. Administration
4. Advertising

Pricing - ANSadequate premium levels preserve the company, offering a cozy profit margin to
permit increase and to climate monetary enterprise cycles or failures; premiums need to be
sufficient to cowl each threat assumed

Major components in pricing - ANS1. Mortality
2. Expenses
3. Investments
4. Profit

Mortality - ANSrepresent predicted price of paying the dying gain on range of deaths within an
insured group over a time frame

Expenses - ANSinvolves the price to operate the agency

Investments - ANSassumptions approximately an affordable rate of go back that must be
earned to ensure monies are to be had to pay future claims

Profit - ANSseek income stage as a return on funding or a return on equity

New enterprise and underwriting evaluation - ANS1. Does the software ask the right questions

, 2. If new product, have the precise questions been delivered to the app?
3. Is the product designed & priced to permit substandard risks the possibility to purchase
product at a better top class?
4. Does the product's intro require a new underwriting magnificence?
Five. What are the proper underwriting age and death benefit quantity limits to help reach the
predicted morality assumptions?

Administration - ANSIssues to deal with: software, bureaucracy and methods, claims, criminal
and compliance, pricing and advertising substances

Product sorts - ANSTraditional products
Interest touchy
Special need merchandise
COLI/BOLI
Optional policy rider benefits

Main traditional life products - ANSWhole lifestyles and Term

Term lifestyles insurance - ANSprovide insurance for a described time period; ought to die
inside time period length; typically no financial savings or coins cost component; higher than
normal substitute lapse prices

Types of time period existence coverage - ANS1. Level time period
2. Decreasing time period
three. Increasing term

Level Term - ANSmaintain a consistent loss of life benefit at some stage in the in pressure
length

Decreasing term - ANSface quantity lower on designated agenda over the length of the
coverage however he premiums remain degree

Increasing time period - ANSface amount that will increase over the coverage duration, regularly
at a hard and fast percent charge to mirror a few shape of inflation

Key capabilities to assist make time period life insurance treasured - ANSrenewability and
convertibility

Renewability - ANSallow the policyholder to resume the coverage on the quit of the initial
duration for one or extra additional time period intervals with out evidence of insurability

Convertibility - ANSprovides the insured the right to convert term insurance to a everlasting
policy within a positive time or by using a certain age without proof or insurability

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