Critical Illness 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 critical illness insurance policies that may be available.
    • Individual
    • Group
  • Identify that an individual critical illness insurance policy may be obtained from an insurance company. 
  • Identify providers of group critical illness insurance policies, such as:
    • Insurance companies
    • Employer-sponsored
    • Creditor protection
    • Association-sponsored
  • Identify the purpose for which critical illness insurance may be used.
  • Identify models that a critical illness insurance policy may use, such as:
    • Permanent plan
    • Term plan
  • Identify factors that may impact an individual’s ability to qualify for critical illness insurance.
    • Medical
      • Age
      • Health history
      • Family health history
    • Financial
      • Benefit amount
      • Financial need based on current income and net worth
    • Lifestyle
  • Identify illnesses that may be covered by a critical illness insurance policy, such as:
    • Life-threatening cancer
    • Heart attack
    • Stroke
    • Other life altering illnesses/diseases

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 critical illness insurance policies that may be available.
    • Individual
    • Group
  • Identify that an individual critical illness insurance policy may be obtained from an insurance company. 
  • Identify providers of group critical illness insurance policies, such as:
    • Insurance companies
    • Employer-sponsored
    • Creditor protection
    • Association-sponsored
  • Identify the purpose for which critical illness insurance may be used.
  • Identify models that a critical illness insurance policy may use, such as:
    • Permanent plan
    • Term plan
  • Identify factors that may impact an individual’s ability to qualify for critical illness insurance.
    • Medical
      • Age
      • Health history
      • Family health history
    • Financial
      • Benefit amount
      • Financial need based on current income and net worth
    • Lifestyle
  • Identify illnesses that may be covered by a critical illness insurance policy, such as:
    • Life-threatening cancer
    • Heart attack
    • Stroke
    • Other life altering illnesses/diseases
Additional Knowledge Expected of CFP Professionals
  • Identify policy provisions associated with critical illness insurance contracts, such as:
    • Covered illnesses
    • Term
    • Conversion options
    • Provision of benefits
    • Premiums
    • Exclusions
    • Riders 
  • Define terms associated with the continuation of a critical illness policy, such as:
    • Non-cancellable
    • Guaranteed renewable
    • Conditional renewable
    • Cancellable
  • Define terms associated with the provision of a benefit under a critical illness insurance policy, such as:
    • Benefit amount
    • Waiting period
    • Covered illnesses
    • Exclusions and limitations
  • Identify terms associated with the conversion options that may be available on critical illness insurance policies, such as:
    • To permanent critical illness insurance
    • To long-term care
  • Identify factors that may impact the premium of a critical illness insurance policy, such as:
    • Age
    • Sex/Gender
    • Current health
    • History of health
    • Type and number of covered illnesses
    • Benefit amount
    • Type and number of riders
  • Identify premium pay periods on which a critical illness insurance policy may be based, such as:
    • Lifetime of insured
    • Limited pay
    • Specific term
  • Identify exclusions that may be included in a critical illness insurance policy, such as:
    • Acts of war
    • Criminal offences
    • Intentional abuse of drugs and alcohol
    • Intentionally self-inflicted injuries
    • Attempted suicide
  • Explain the purpose of riders that may be added to critical illness insurance policies, such as:
    • Waiver of premium
    • Return of premium (on death, surrender, maturity of policy)
    • Automatic benefit increase
  • Identify types of approvals upon adjudication of an application for critical insurance, such as:
    • Approved as applied for
    • Approved with revision to terms of policy
      • Increased premium
      • Reduced benefit amount
      • Exclusions based on medical history or lifestyle
  • Explain factors that may be considered in structuring disability insurance coverage, such as:
    • Length of recovery period
    • Cash flow needs
    • Debt obligations
    • Goals (i.e., funding retirement or education goals)
    • Ability to self-fund during recovery period (e.g., draw on savings, sale of assets)
    • Other sources of income during recovery period
    • Affordability
  • Explain characteristics that may be used when comparing individual and group critical illness insurance policies, such as:
    • Ownership and control
    • Cancellability
    • Period of coverage
    • Portability
    • Termination options
    • Application requirements
    • Covered illnesses
    • Evidence of insurability requirements
    • Time of underwriting
    • Benefit recipient
    • Optional riders
    • Premium guarantees
    • Premiums
    • Tax impact