Life Insurance Workbook

1. H O W W I L L T H I S W O R K B O O KA N S W E R Y O U R Q U E S T I O N S ?THE QUESTIONS ANDANSWERS ON LIFEINSURANCE WORKBOOKCreated by the author of Questions & Answers on Life InsuranceTony Steuer, CLU, LA, CPFFE

2. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comAUTHOR OF:TONY STEUER, CLU, LA, CPFFE

3. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comTONY STEUER, CLU, LA, CPFFE• Author, Advocate andeducator for insuranceliteracy• Director of FinancialPreparedness - UnitedPolicyholders• Member: CaliforniaDepartment of InsuranceCurriculum Board• Member: NationalFinancial EducatorsCouncil CurriculumAdvisory Board

4. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comTHIS PRESENTATION WILL GIVE YOU ANOVERVIEW OF THE QUESTIONS ANDANSWERS ON LIFE INSURANCE WORKBOOKThis presentation:• Highlights important topicsin the workbook;• Gives you simple answers tothe top questions on lifeinsurance; and• Helps you to know the rightquestions in order to planwell and spend wisely.

5. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 1: EVALUATE YOURNEEDS & SITUATIONTake charge! It’s your money, soplan your way to smart spending.• Life insurance is for thebenefit of someone who isdependent upon yourincome, like a child,spouse/partner, or businesspartner.• To purchase the rightpolicy, it’s important to takethe time and evaluate yoursituation.

6. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP I: CALCULATE YOURNEED FOR LIFE INSURANCEProtecting family from…Income loss, debt, or estatetax liabilityWHAT ARE YOUR NEEDS?To determine how much lifeinsurance you need, use theworksheet or calculators onwww.lifeinsurancesage.com or byclicking on the image:

7. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comWhat if I have group life?(For example, through an employer.)If not, skip to the next slide.• Premiums typically increase annually or every fifthyear for group insurance plans;• Coverage is usually not portable (you can’t take itwith you);• Generally, group plans are more expensive for thosein good health (due to simplified or modifiedunderwriting); and• Coverage amounts are limited.

8. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 2: FINDING THE LIFE INSURANCE THAT’S BEST FOR YOUTERM LIFE INSURANCE OVERVIEWTerm Insurance provides coverage only for aspecified amount of time and expires without value.Types (most common):•Guaranteed Level Premium Term•Annual Renewable Term•Decreasing Term (a.ka. Mortgage Insurance)•Return of Premium TermView my presentation: Understanding Term Life Insurance at:http://www.lifeinsurancesage.com/slideshare/

9. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 2: FINDING THE LIFE INSURANCE THAT’S BEST FOR YOUPERMANENT LIFE INSURANCE OVERVIEWTypes (most common):•Whole Life•Universal Life•Variable Life•Equity Indexed Universal Life•Joint & Survivor (2nd to die)Permanent Insurance is designed to provide coverage untilyou die and often accumulates a cash value over time.View my presentation: Understanding Permanent Life Insurance at:http://www.lifeinsurancesage.com/slideshare/Insurance policiesmay look alike, buteach one isdifferent.

10. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.com• Evaluate your health (examples: physical build,cholesterol, medical conditions, family history, etc.)w Medical Records - review your medical records tounderstand your history and health.w Think of your health rating like a credit rating. Infinance the better your credit score, the morefavorable your interest rate. Good health andphysical fitness earn you a good credit score andthus a better rate.• Financial UnderwritingDifferent life insurance companies have differentunderwriting standards. Because these standardsdetermine the rates you pay, you want to be well awareof the differences among them before you sign on thedotted line.........................STEP 3: ASSESSING HEALTH AND OTHERFACTORS THAT IMPACT PREMIUM RATESWhich one is you?

11. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comPART II: EVALUATE COMPANIES & AGENTSSTEP 4: EVALUATING LIFE INSURANCE COMPANIESThe workbook gives you details on howinsurance companies are rated so that youcan evaluate your company, and explains:• Financial Strength Ratings• What these ratings are & where tofind them• Financial Analysis• Ethical Standards• NAIC/State Insurance Department -Complaints (for Variable Products -FINRA)Visitwww.lifeinsurancesage.comfor links to rating services,NAIC & FINRA

12. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 5: CHOOSING AN ADVISOR• Check on whether the professional working withyou is properly licensed with the Department ofInsurance in your State (and for Variable Productswith FINRA) at: www.lifeinsurancesage.com• What are there qualification & designations?Chartered Life Underwriter’s (CLU’s) havecomprehensive Life Insurance training (usewww.designationcheck.com to confirm)• Be aware of rogue designations - See the CaliforniaDepartment of Insurance Bulletin on SeniorDesignations.• Find an advisor at the Society of Financial ServicesProfessional (SFSP) website (www.financialpro.org)or at the LIFE website (www.lifehappens.org)

13. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 6: SELECTING POLICY COMPONENTS & RIDERSw Beneficiaries - always make sure to name a contingentbeneficiary.w Policy Owner - know how this financial tool works andhow changes or events can seriously affect it (i.e. policyloans). Ask questions if you don’t understandsomething.w Policy Riders - are they worthwhile? Popular ridersinclude:w Waiver of Premiumw Accelerated Death Benefit Rider• The workbook helps you to prioritize what is importantand empowers you to ask questions. Keep in mind thefollowing as you choose or evaluate a policy:Complete the application accurately, completely and truthfullyalong with all forms.

14. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comPART III: UNDERSTAND, MAINTAIN& MONITOR YOUR POLICYThe workbook reviews what you need to knowafter you’ve obtained a policy (or found an oldpolicy in a drawer.)Policies are living things. Keep track of them!Key information is explained so that you candecide to keep, replace or terminate a policy.

15. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comFREQUENCY OF PAYMENTIt matters how frequently you choose to pay your insurance. Changing howoften you pay can save you a lot of money (especially on term insurance).FREQUENCY OF PAYMENTMONTHLYANNUALCOST(%extrayoupay)SEMI-ANNUALClick here toopen an onlinecalculatorQUARTERLY3.92 - 8%4-20%2-6%0%

16. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 7: ASSESS YOUR POLICYIS IT LIVING UP TO YOUR EXPECATIONS?Gather and check for this information:• Death Benefit• What is the current benefit?• Type of Coverage• Term, Whole Life, Universal Life, Variable Life,Equity Indexed or something else...• Cash Value (if any)• Loan Values (if any)• Conversion Eligibility• If it’s term insurance, some policies allowconversion to permanent.• Any and all information is helpful in yourassessment!

17. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comFURTHER STEPS: ASSESSINGA PERMANENT (CASH VALUE POLICY)Here is what you need to monitor an existing lifeinsurance policy:• Current (most recent) annual statement• In-force illustration based on current assumptions• In-force illustration(s) with any desiredmodificationsSign up for an annual review package at:www.lifeinsurancesage.comRead about why (and how) a policy can under-perform in the Resources section at:www.lifeinsurancesage.comIs your policyrunning out oftime?

18. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 8: REPLACING A POLICY:TERM INSURANCEWhen replacing a term policy, consider these facts:• Premium• What is the actual net premium & is it guaranteed?• Length of guaranteed premium period• New Incontestability Clause & Suicide Provision• Most policies are issued with an incontestabilityclause, which means that unless you don’t payyour premium, the insurance company cannotcontest the insurance contract during your lifetimeas long as the original policy is in-force, no matterhow your health may change. Check for the periodof time that the company is allowed to contest.

19. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comSTEP 8: REPLACING A POLICY:PERMANENT (CASH VALUE) INSURANCE• What are the different assumptions & guaranteesin your policy?• Interest Rate, Dividend Scale, etc.• Cost of Insurance/Mortality Cost• Expense Charges• Qualification as an IRS Section 1035 Tax-FreeExchange• Is there a surrender charge?• What are other pros & cons?The above are the main areas, however, everypermanent life insurance policy is a complexfinancial product with unique features.Comparing permanentpolicies can be acomplex & trickyarea. Proceed withcaution

20. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comTERMINATING A POLICYTERM VS. PERMANENT• Term Policy: To cancel, notify thecompany and request immediatetermination (possible partial refund).• Permanent Policy: To cancel, you can:• Surrender the policy• Exchange the policy to an annuity• Gift the policy to an entity• Sell the policy in a secondarymarketplace.

21. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comMORE RESOURCESW W W. T O N Y S T E U E R . C O MFeel free to forward this free pdf download link to friends!Additional thanks to MyStoryCatcher.com and ThreeLineMedia.com

22. By Tony Steuer, CLU, LA, CPFFE Visit: www.tonysteuer.comDOWNLOAD THE FREE REPORTAT TONYSTEUER.COM:W W W. T O N Y S T E U E R . C O M

23. W W W. T O N Y S T E U E R . C O MTHANK YOU!Thank you for taking the time to watch this Presentation!