knowledge topics
Creditor Insurance
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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
- Explain the factors to consider when contemplating 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 (e.g. 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
Glossary of Verbs (mouse over to see definition)
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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
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK