Foundations of Life Insurance
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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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
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Define
To state exactly the meaning of
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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.
- Explain foundational uses of life insurance, such as:
- Paying final expenses of insured
- Replacing income/asset values
- Funding of goals (upon the death of an individual)
- Retirement of debt
- Education costs for survivors
- Explain approaches to determine a suitable amount of life insurance for an individual, such as:
- Expense coverage
- Cash flow replacement
- Explain characteristics that may be used when comparing term life insurance, whole life, term-to-100 and universal life insurance, such as:
- Premiums over time
- Premium options
- Duration of policies
- Flexibility
- Options for non-payment
- Cash values
- Impact of interest rates
- Involvement in investment decisions
- Impact on overall asset allocation
- Diversification
- 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.
- Explain foundational uses of life insurance, such as:
- Paying final expenses of insured
- Replacing income/asset values
- Funding of goals (upon the death of an individual)
- Retirement of debt
- Education costs for survivors
- Explain approaches to determine a suitable amount of life insurance for an individual, such as:
- Expense coverage
- Cash flow replacement
- Explain characteristics that may be used when comparing term life insurance, whole life, term-to-100 and universal life insurance, such as:
- Premiums over time
- Premium options
- Duration of policies
- Flexibility
- Options for non-payment
- Cash values
- Impact of interest rates
- Involvement in investment decisions
- Impact on overall asset allocation
- Diversification
- Tax impact
