Creditor Insurance

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify types of insurance that may be offered through credit providers, such as:
    • Life insurance
    • Disability insurance
    • Critical illness insurance
    • Accidental death and dismemberment insurance
    • Job loss insurance 
  • Identify the types of credit for which creditor insurance may be available, such as:
    • Mortgage
    • Loan
    • Line of credit
    • Credit card
  • Identify factors to consider when contemplating the purchase of creditor insurance, such as:
    • Ownership and control
    • Cancellability
    • Period of coverage and expiry
    • Minimum and maximum amounts of coverage
    • Portability
    • Termination options
    • Application requirements
    • Definitions (i.e., disability and occupation for disability insurance)
    • Covered illnesses (for critical illness insurance)
    • Evidence of insurability requirements
    • Time of underwriting (pre- or post-claim)
    • Value of benefit payable
    • Beneficiary
    • Optional riders
    • Premium guarantees
    • Premiums
    • Potential impact of declines on other insurance applications
    • Tax impact

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify types of insurance that may be offered through credit providers, such as:
    • Life insurance
    • Disability insurance
    • Critical illness insurance
    • Accidental death and dismemberment insurance
    • Job loss insurance 
  • Identify the types of credit for which creditor insurance may be available, such as:
    • Mortgage
    • Loan
    • Line of credit
    • Credit card 
Additional Knowledge Expected of CFP Professionals
  • Explain factors to consider when contemplating the purchase of creditor insurance, such as:
    • Ownership and control
    • Cancellability
    • Period of coverage and expiry
    • Minimum and maximum amounts of coverage
    • Portability
    • Termination options
    • Application requirements
    • Definitions (i.e., disability and occupation for disability insurance)
    • Covered illnesses (for critical illness insurance)
    • Evidence of insurability requirements
    • Time of underwriting (pre- or post-claim)
    • Value of benefit payable
    • Beneficiary
    • Optional riders
    • Premium guarantees
    • Premiums
    • Potential impact of declines on other insurance applications
    • Tax impact