2.0 Life Basics Overview
Learning Objectives
Upon completion of this chapter, you will be able to:
- Distinguish between a policyowner and an insured
- Identify the types of receipts issued when collecting premiums
- Recognize the primary sources of information used in underwriting
- Differentiate among standard, preferred, and substandard risk classifications
- Identify the personal uses of life insurance
- Compare various methods for determining the appropriate amount of life insurance needed
Overview
This chapter explains the life insurance process, including application completion, underwriting procedures, and policy delivery. It introduces the personal uses of life insurance and reviews methods used to determine the appropriate amount of coverage.
In addition, this chapter provides an overview of the various classes of life insurance policies and examines the concept of third-party ownership.