INSURANCE & RISK MANAGEMENT

Protecting wealth is as important as building it. These topics cover the full spectrum of insurance
products and risk management strategies.

TOPIC 62
Term Life Insurance: The Foundation of Life Coverage
Term life insurance provides the maximum death benefit per premium dollar and is the recommended foundation of
life insurance for most families. This topic covers how term policies work, how to calculate appropriate coverage
levels, and the convertibility options that provide flexibility as needs change.

How term life insurance works: level premium and death benefit
Term lengths: 10, 20, 30-year options
How much coverage do you need? Human Life Value method
DIME method for coverage calculation
Term vs. whole vs. universal: the cost comparison
Convertibility riders and their value
Life insurance for stay-at-home spouses and parents

TOPIC 63
Whole Life & Universal Life Insurance
Permanent life insurance products like whole life and universal life combine a death benefit with a savings or
investment component, making them more complex and significantly more expensive than term coverage. This
topic provides an objective analysis of permanent life products, their legitimate use cases, and the critical questions
to ask before purchasing.

Whole life: guaranteed premiums, cash value, and dividends
Universal life: flexible premiums and adjustable death benefits
Indexed universal life (IUL): features and risks
Variable universal life (VUL) and investment risk
Cash value accumulation: how it works and policy loans
When permanent life insurance makes sense
Surrender charges and illustrations: reading the fine print

TOPIC 64
Health Insurance: Plans, Networks & Cost Structures
Health insurance is the most complex and frequently used insurance product for most Americans, with cost-sharing
structures that can lead to unexpected out-of-pocket expenses. This topic breaks down plan types, key cost
components, network considerations, and marketplace options including ACA subsidies.

HMO vs. PPO vs. HDHP vs. EPO: plan type comparison
Premium, deductible, copay, coinsurance, and out-of-pocket maximum
In-network vs. out-of-network cost implications
ACA marketplace plans and subsidies
Employer-sponsored health insurance: pre-tax advantages
COBRA continuation coverage: eligibility and cost
Short-term health plans: risks and limitations

TOPIC 65
Health Savings Accounts (HSAs) & Flexible Spending Accounts (FSAs)
Health Savings Accounts offer a unique triple tax advantage — deductible contributions, tax-free growth, and
tax-free withdrawals for qualified medical expenses — making them one of the most powerful savings tools
available. This topic covers HSA and FSA mechanics, contribution strategies, and how to leverage an HSA as a
supplemental retirement savings vehicle.

HSA eligibility: HDHP requirement
Triple tax advantage of HSAs
HSA contribution limits and catch-up contributions
Investing HSA funds for long-term growth
Using HSA as a stealth retirement account
FSA: use-it-or-lose-it rules and grace period
Dependent care FSA vs. child and dependent care credit

TOPIC 66
Disability Insurance: Protecting Your Income
Disability insurance replaces a portion of income when illness or injury prevents someone from working, yet it is the
most underutilized major insurance category despite a 1-in-4 working American probability of disability. This topic
explains policy structures, critical definition differences (own-occupation vs. any-occupation), and how to structure
adequate coverage.

Short-term vs. long-term disability insurance
Own-occupation vs. any-occupation definitions of disability
Elimination period and benefit period selection
How much disability coverage do you need (60-70% of income)
Group disability through employers vs. individual policies
Taxation of disability benefits: employer-paid vs. self-paid
Disability insurance for self-employed and business owners

TOPIC 67
Long-Term Care Insurance & Planning
Long-term care costs are the single largest uninsured financial risk facing retirees, with nursing home care
exceeding $100,000 annually in many markets. This topic examines traditional and hybrid LTC insurance products,
Medicaid planning considerations, and how to integrate LTC risk into a comprehensive retirement plan.

What long-term care includes: ADLs and cognitive impairment triggers
Cost of long-term care: national and regional averages
Traditional LTC insurance: features and premium trends
Hybrid LTC products: life insurance with LTC rider
Medicaid and long-term care spend-down planning
Self-insuring for long-term care: asset thresholds
When to buy LTC insurance: age and health considerations

TOPIC 68
Property & Casualty Insurance: Home & Auto
Property and casualty insurance protects the two largest assets most families own — their home and vehicle —
against damage, theft, and liability claims. This topic covers the key coverage options, the critical difference
between ACV and replacement cost, and how to ensure adequate protection without overpaying.

Homeowners insurance: coverage types (HO-3, HO-6, HO-8)
Actual cash value vs. replacement cost coverage
Auto insurance: liability, collision, comprehensive
State minimum liability requirements vs. adequate coverage
Uninsured/underinsured motorist coverage
Bundling home and auto: discounts and considerations
Claims process and impact on future premiums

TOPIC 69
Umbrella Insurance: Extending Your Liability Coverage
An umbrella policy provides an additional layer of liability protection above the limits of home and auto insurance at
a remarkably low cost, typically around $150–$300 per year for $1 million in coverage. This topic explains how
umbrella policies work, who needs them most, and the underlying coverage requirements for eligibility.

What umbrella insurance covers and does not cover
How umbrella policies layer over home and auto liability
Coverage amounts: $1M to $10M in increments
Cost of umbrella insurance (typically $150-$300/year for $1M)
Who especially needs umbrella coverage
Underlying coverage requirements to qualify
Umbrella insurance for landlords and rental property owners

TOPIC 70
Church & Ministry Insurance & Risk Management
Churches and ministries face a unique set of insurance risks that require specialized coverage beyond standard
commercial policies, including liability for volunteers, sexual misconduct exposure, and property risks for multi-use
facilities. This topic outlines the essential insurance coverages for faith communities and the risk management
practices that can reduce both exposure and premiums.

Church property insurance: buildings, contents, and equipment
General liability for churches and ministry events
Directors and officers (D&O) liability for church leaders
Sexual misconduct liability coverage
Workers’ compensation for church employees and volunteers
Vehicle insurance for church vans and ministry transportation
Risk management policies: background checks and safeguarding protocols

TOPIC 71
Annuities: Insurance, Income & Retirement Planning
Annuities are insurance contracts that convert a lump sum into a guaranteed income stream, occupying a unique
space between insurance and investment in retirement planning. This topic provides an objective analysis of
annuity types, their fee structures, tax treatment, and the specific situations where they add genuine value to a
retirement income plan.

What annuities are: insurance contracts, not investments
Accumulation phase vs. distribution phase
Fixed, variable, and fixed-indexed annuities compared
Immediate vs. deferred income annuities
Surrender charges, fees, and expense ratios
Tax treatment of annuity distributions
When annuities make sense in retirement planning

TOPIC 72
Professional Liability & Errors and Omissions Insurance
Professional liability (errors and omissions) insurance protects service professionals against claims of negligence,
mistakes, or inadequate work that cause financial harm to clients. This topic explains the coverage structure, the
critical difference between claims-made and occurrence forms, and how professionals should determine adequate
coverage limits.

Professional liability vs. general liability: the distinction
Who needs E&O/malpractice insurance
Claims-made vs. occurrence policy forms
Tail coverage and retroactive dates
Professional liability for CPAs, attorneys, and consultants
Determining adequate policy limits
Premium factors: industry, revenue, and claims history

TOPIC 73
Workers’ Compensation Insurance
Workers’ compensation insurance provides wage replacement and medical benefits to employees injured on the
job while protecting employers from civil lawsuits related to workplace injuries. This topic covers state
requirements, premium calculation factors, classification code accuracy, and strategies for managing workers’
compensation costs.