• Explain the purpose of permanent life insurance.¹ 
• Explain for whom permanent insurance may be suitable.
• Define the types of permanent life insurance.
  • Term-to-100
  • Whole life
  • Universal life
• Explain advantages and disadvantages of the types of permanent life insurance.
• Estimate the need for permanent insurance.
• Explain how each of the factors may impact the suitability of permanent insurance, such as:
  • Likelihood of risk occurring
  • Financial impact should risk occur
  • Ability to self-fund the potential loss (e.g. using income, liquidation of assets)
  • Tax impacts (associated with disposition of property and liquidation of assets)
  • Impact on standard of life
  • Impact on future goals
  • Estate planning objectives
  • Personal attitudes toward the use of insurance
  • Length of coverage required
  • Permanency of coverage required
  • Age of life insured
  • Health of life insured
  • Cash flow available for premiums
  • Policy features
• Evaluate how each of the factors may impact the suitability of permanent insurance.

Term-to-100

• Explain for whom a term-to-100 insurance may be suitable.
• Explain attributes of a term-to-100 life insurance policy, such as:
  • Constancy of death benefit
  • Constancy of premiums
  • Period over which premiums are payable
  • Period over which coverage is in effect

Whole Life Insurance

• Explain for whom a whole life insurance policy may be suitable.
• Explain attributes of a whole life insurance policy, such as:
  • Constancy of death benefit
  • Constancy of premiums
  • Period over which premiums are payable
  • Period over which coverage is in effect
  • Cash values
• Define terms associated with a whole life insurance policy, such as:
  • Reserve
  • Cash value
  • Cash surrender value
  • Participating policy
  • Non-participating policy
  • Dividends
• Explain options available to an individual when receiving a dividend from a whole life insurance policy.
  • Receive as cash
  • Use to automatically reduce the premium
  • Used to pay-up a policy or purchase additional insurance
  • Accumulate it within the policy
  • Use to purchase reducing term insurance
• Explain how premiums may be offset using dividends.
• Explain the impact to an individual when receiving a dividend from a whole life insurance policy.
  • Impact on amount of insurance coverage
  • Tax impact
• Explain payment options for a whole life insurance policy.
  • Level premium payment
  • Limited payment (e.g. paid up over shorter time period)

Universal Life

• Explain for whom a universal life policy may be suitable.
• Explain attributes of a universal life insurance policy, such as:
  • Variability of death benefit
  • Variability of premiums/contributions
  • Variability of cost of insurance (e.g. yearly renewable term, level term)
  • Period over which premiums are payable
  • Period over which coverage is in effect
  • Cash values
  • Number of lives that may be insured
• Explain the concept of how universal life insurance works.
• Explain the coverage amounts / death benefit options available on universal life insurance policies, such as:
  • Level death benefit
  • Level death benefit plus account value
  • Level death benefit plus accumulated deposits
  • Indexed death benefit
• Identify types of investments that may be held within a universal life insurance policy, such as:
  • Guaranteed types of investments
  • Variable types of investments
• Explain the potential impact of the choice of investments on a universal life insurance policy.
  • On the value of the investment
  • On the value of the insurance
  • On the premium (contributions) required

Endowment Policies

• Define an endowment policy.