Practical Insurance Planning – Module 1 (PIP1)

Practical Insurance Planning – Module 1 (PIP1)

 

PIP1 is the first of two modules that deal with insurance planning for families of various wealth levels and planning situations.

This module reviews and reinforces the key concepts of insurable interest and ownership, and the various distribution options available for the proceeds of insurance policies.

Trainees are then shown the many diverse family situations they are likely to encounter among their clients from blended families and families with special needs members to LGBT couples and families concerned about divorce, among others.

 

Course Objectives and Outcomes

When a person purchases an insurance policy, he has a few choices of how to deal with the proceeds when he passes away. He can for example:

  • Let the proceeds flow into his estate to be distributed according to his Will;
  • Give the proceeds to his wife through a nomination; or
  • Transfer the policy to another person through an assignment.
  • Stagger the proceeds through trust

The choice he makes should depend on the situation he is planning for. Various planning situations would influence the distribution option to be chosen that is most suitable.

 

Course Objectives and Outcomes

  1. To understand key insurance concepts like insurable interest and types of ownership.
  2. To examine the different distribution options of insurance proceeds.
  3. To study various planning situations and to evaluate what is the most suitable distribution option.

 

Contents Outline:

  1. Review of Insurance Concepts
    1. Insurable interest
    2. Ownership
  2. Distribution Options
    1. Using estate
    2. Using nomination
    3. Using assignment
    4. Using testamentary trust
    5. Using living trust
  3. Part C – Planning Situations
    1. Blended family
    2. Person with special needs
    3. Divorce
    4. Muslim
    5. LGBT