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CPCU 556 Personal Financial Planning Review AidEducational Objectives 1 Intro to Fin Planning        Describe personal fin...
CPCU 556 Personal Financial Planning Review AidEducational Objectives 4 Disability and Health Insurance Planning   1. Desc...
CPCU 556 Personal Financial Planning Review AidEducational Objectives 7 Retirement Funding   1. Describe (a) the evolution...
CPCU 556 Personal Financial Planning Review AidEducational Objectives 10 Income Tax Planning   Describe basic concepts tha...
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CPCU556 review guide

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Educational objectives for the post April 2012 testing

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CPCU556 review guide

  1. 1. CPCU 556 Personal Financial Planning Review AidEducational Objectives 1 Intro to Fin Planning Describe personal financial planning goals and the personal financial planning cycle Explain how individuals and families use financial planning techniques to achieve personal financial planning goals Summarize the types of personal insurance that can be used by individuals and families to transfer risk Demonstrate how each of the steps in personal financial planning process guides individuals and families in their personal financial planning decisions.Educational Objectives 2 Life Insurance 1. Describe the financial impact of the premature death personal loss exposure on the following types of family structures a. Singles w/o children b. Single-parent families c. Two-income family d. Traditional families e. Blended families f. Sandwiched families 2. Describe the needs approach and the human life value approach for determining the appropriate amount of life insurance 3. Describe the basic concepts underlying the major types of life insurance 4. Describe the characteristics, types, and purpose of term life insurance 5. Describe the characteristics, types, and purpose of whole (ordinary) life insurance 6. Describe the characteristics and purpose of universal life insurance 7. Describe the characteristics of variable universal life insurance 8. Explain how life insurance can be used to enhance the value of a business and provide business continuity 9. Given an individual’s or a family’s financial information, risk tolerance, and premature death exposures, apply the personal financial planning process to select an appropriate life insurance plan.Educational Objectives 3 Annuities 1. Describe the parties to and fundamental purposes of an annuity 2. Describe the characteristics of the major categories of annuities 3. Describe the financial elements of a variable deferred annuity 4. Compare annuities and life insurance 5. Explain how an annuity is used to fund a structured settlement 6. Given an individual’s or a family’s financial information, risk tolerance, and retirement funding goals, apply the personal financial planning process to select an appropriate annuity Donna M. Kesot, CPCU Page 1 The Institutes Financial Planning©
  2. 2. CPCU 556 Personal Financial Planning Review AidEducational Objectives 4 Disability and Health Insurance Planning 1. Describe the financial impact of disability and other health-related personal loss exposures on individual and families. 2. Summarize the distinguishing characteristics of each of the following types of disability income insurance a. Individual disability income insurance b. Group disability income insurance c. Social Security disability income program 3. Describe the characteristics of the following non-governmental programs for providing healthcare benefits a. Traditional health insurance plans b. Managed-care plans c. Consumer-directed health plans 4. Describe each of the following programs for providing health-care benefits a. Original Medicare b. Medicare Advantage c. Medicare Supplemental Insurance d. Medicare Part D Prescription Drug Coverage e. Medicaid 5. Describe the considerations an individual should review when choosing a long-term care insurance policy, including typical benefits provided or excluded, coverage triggers, eligibility provisions, and other economic issuesEducational Objectives 5 Postsecondary Educational Funding 1. Describe the planning considerations for funding postsecondary education and how they relate to the annual funding estimate 2. Explain how to determine need-based financial aid for postsecondary education 3. Describe the advantages and disadvantages of various types of postsecondary education funding sources 4. Given an individual’s or family’s financial information, risk tolerance, and postsecondary education funding goals, apply the personal financial planning process to develop an appropriate postsecondary education funding plan.Educational Objectives 6 Retirement Planning 1. Describe the financial impact of the retirement personal loss exposure on individuals and families 2. Describe the steps in the retirement planning process 3. Explain how to determine annual savings needs for retirement 4. Given an individual’s or a family’s financial information and retirement goals, apply the retirement planning process to develop an appropriate paln Donna M. Kesot, CPCU Page 2 The Institutes Financial Planning©
  3. 3. CPCU 556 Personal Financial Planning Review AidEducational Objectives 7 Retirement Funding 1. Describe (a) the evolution of retirement funding, (b) retirement funding categories, and (c) tax advantages available for funding retirement. 2. Explain how employer-sponsored retirement plans are categorized 3. In terms of operation, eligibility, and advantages and disadvantages, compare these types of employer-sponsored retirement plans a. Qualified defined benefit plans b. Qualified defined contribution plans c. Nonqualified plans 4. Compare the various types of individual retirement accounts (IRAs) 5. Describe the advantages and disadvantages of a nonqualified annuity as a retirement funding vehicle 6. Describe the following with regard to the US Social Security program a. The basic characteristics of OASDHI b. Covered occupations c. The eligibility requirements for insured status d. The types of benefits provided 7. Describe the retirement income choices for an individual or a family 8. Given an individual’s or a family’s financial information and retirement goals, recommend an appropriate retirement savings and income strategyEducational Objectives 8 Estate Planning 1. Describe the goals of estate planning and the parties involved in it 2. Describe the steps in the estate planning process 3. Recommend techniques an individual or a family can use to minimize federal gift and estate taxes 4. Describe the benefits of using wills, trusts, and life insurance as estate planning tools 5. Given an individual’s or a family’s financial information and estate planning goals, recommend an appropriate estate planEducational Objectives 9 Investment Basics Describe basic investment risk and return concepts Describe types of investment risk Describe the types of investment strategies Describe the characteristics of various types of investments Given an individual’s or a family’s savings goals and tolerance for various investments risks, recommend an appropriate investment strategy Donna M. Kesot, CPCU Page 3 The Institutes Financial Planning©
  4. 4. CPCU 556 Personal Financial Planning Review AidEducational Objectives 10 Income Tax Planning Describe basic concepts that apply to federal income tax for individuals Describe the income taxation of life insurance and annuities Describe the income tax concepts that apply to postsecondary education funding Describe the income tax concepts that apply to retirement funding Describe the income tax concepts that apply to the taxation of transferred property Given information on a families retirement plan and its current and future tax brackets, develop a tax minimization strategyDonna M. Kesot, CPCU Page 4The Institutes Financial Planning©

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