Cards that need to be reviewed

7-pay

Once you violate the 7-pay test and don’t immediately correct it, it becomes MEC. Pre death distributions become (income taxable).

Noncancelled & Guaranteed Renewability

Income are the most comprehended underwriting; allow for guaranteed renewal up to a certain age without evidence of insurability.

Fraternal Organizations

Provide an-open network PPO

Income Needs

• Dependency

• Preretirement

• Retirement

  • Emergency fund = cash need NOT income need

Purchasing Life Insurance

Transferring Risk

Self Insurance

Retaining Risk

To borrowing against life insurance

Must have paid policy premiums for 3 years

Underwriting Techniques

• Charging Extra Premium

• Limiting Coverage

• Restrict Modifying the policy issued

In Individual accident and Health Insurance policys

• A change of beneficiary is mandatory provision

Health Policy’s exclude benefits that

are covered by Medicare

Single Premium Whole Life

If the premium was paid for a single premium whole life policy it = MEC, so when you withdraw there’s income taxation + 10% penalty if insured is under 59 ½

Required Life insurance provisions

• Grace Period

• Misstatement of age

• Incontestability provision

  • Wavier of Premium is NOT required

Employee Contributions to individual retirement plans

are deductible from ordinary income

Medicare Supplement Policy’s

may not indemnify against losses resulting from sickness or accidents

Utilization Management

• Prospective

• Concurrent

• Retrospective

LTC

Can be returned in 30 days

Chronic illness

must have a minimum time of 90 days (3 months) to qualify for LTC

POS

Means Gatekeeper PPO

• Allows in and out of networks