Insurance on the Person

1
Chapter 9

• Insurance on the Person

2
Why Purchase Life Insurance?

• Income replacement
• Estate preservation
• Tax benefits

3
Income Replacement

• Income for the readjustment period
• Financial support of dependents
• Other personal financial plans

4
Estate Preservation

• Medical expenses prior to death
• Disposal and ceremonial expenses
• Probate expenses

5
Tax Benefits

• Death proceeds are not taxable to the recipient
• Interest on cash value life Insurance policy is
  tax deferred until the cash value is withdrawn

6
Approaches to Providing Adequate Protection

• Needs Approach
• Human Life Value Approach
• Capital Retention Approach

7
Individual Life Insurance Policies

• Term insurance
• Whole life insurance

8
Group Life Insurance

• Group term
• Group whole life insurance
• Conversion
• Coverage for retirees

9
Life Annuity Contracts

• What is an annuity?
• Types of annuities
• Timing of annuity payments

10
Why Purchase Health Insurance?

• To pay medical bills
• To replace lost income

11
Individual Health Insurance Coverages

• Purpose
• Cost concerns
• Eligibility
• Medical expense insurance
• Major medical insurance
• Disability income insurance
• Portability of group plans
• Long-term care insurance

12
Group Health Insurance

• Eligibility
• Characteristics

13
Various Types of Group Health Insurance

• Basic and major medical
• Dental and vision
• Disability income
• Managed care
• Coordination of benefits

14
Various Types of Group Health Insurance (contd)

• Termination of benefits
• COBRA
• Coverage for elderly employees
• Coverage for retirees
• Taxation of group health benefits