1. Chapter 10 Financial Planning with Life Insurance McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Life Insurance Chapter Objectives
Define life insurance and determine your life insurance needs.
Distinguish between the types of life insurance companies and analyze various types of life insurance policies these companies issue.
Select important provisions in life insurance contracts and create a plan to buy life insurance.
Recognize how annuities provide financial security.
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3. Objective 1 Define Life Insurance and Determine Your Life Insurance Needs
Primary Purpose of Life Insurance:
Life insurance:
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4. Purpose of Life Insurance
Other reasons:
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5. The Principle of Life Insurance
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6. Do You Need Life Insurance?
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7. Estimating Your Life Insurance Requirements
The Easy Method
The DINK Method
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8. Estimating Your Life Insurance Requirements
The “Nonworking” Spouse Method
The “Family Need” Method
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9. 2 Types of Life Insurance Companies
Objective 2 Distinguish Between the Types of Life Insurance Companies and Analyze Various Types of Life Insurance Policies These Companies Issue
2 Types of Life Insurance Companies
Type of Company
Owned by
Stock life Insurance
Shareholders
Mutual life insurance
Policyholders
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10. Stock Life Insurance Companies
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11. Mutual Life Insurance Companies
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12. Types of Life Insurance Policies
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13. Term Life Insurance
“Term Life”
Many types:
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14. Whole Life Insurance
“Straight Life”
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15. Whole Life Policy Options
Limited Payment Policy
Variable Life Policy
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16. Whole Life Policy Options
Adjustable Life Policy
Universal Life
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17. Other Types of Life Insurance Policies
Group life insurance
Credit life insurance
Endowment Life Insurance
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18. Key Provisions in a Life Insurance Policy
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19. Key Provisions in a Life Insurance Policy
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20. Key Provisions in a Life Insurance Policy
Life Insurance Policy Riders
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21. Choosing Settlement Options
Settlement Options = choices of how the insurance money is paid out
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22. Buying Life Insurance
Consider:
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23. Buying Life Insurance
Determine from whom to buy your policy
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24. Choosing Your Insurance Agent
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25. Buying Life Insurance Compare policy costs based on:
Interest-adjusted index
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26. Obtaining and Examining a Policy
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27. 10 Golden Rules of Buying Life Insurance
From Page 338, Personal Finance in Practice Box
Source: American Council of Life Insurance
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28. Should You Switch Policies?
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29. Objective 4 Recognize How Annuities Provide Financial Security
Financial Planning with Annuities
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30. Why Buy Annuities?
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31. Types of Annuities Fixed annuity Variable annuity
Can be included in IRAs and Keogh plans
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