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Life Insurance

Course Overview


This course was created to teach advisors (CPAs, EAs, accountants, attorneys, financial planners, and insurance advisors) about a topic most non-insurance advisors despise, e.g. life insurance.   Most non-insurance advisors think of many life insurance agents as product pushers who are looking out for their own good.  The opinion mainly comes out of a lack of understanding about how life insurance works and how it can benefit clients.


The following material will explain to advisors the basics that hold true for all life insurance policies, and then specific information which differentiates Term, Whole, Universal and Variable life Insurance policies.  The material will also cover several new types of life insurance policies and why these policies are in many cases better than the traditional policies that have been sold for over 20 years.  The new types of policies are Return of Premium Term, No-Cash Value Universal Life and Equity Indexed Universal Life.


Non-insurance advisors who read and understand the following material will no longer have to wonder if the local life insurance agents are doing what is in their client’s best interests or what is in the insurance advisor’s best interest.


Life Insurance


1) Introduction

a) The Basics


2) Type of Life Insurance Policies

b) Term Life Insurance

i) Guaranteed Level Term (GLT)

            ii) Annually Renewable Term (ART)

                        iii) Return of Premium Term (ROPT)

            iv) Conversion privileges

            v) Conclusion on term life


3) Cash Value Life Insurance

a) Cash Surrender Value (CSV)

            b) Cash Account Value (CAV) 

            c) Policy Withdrawals

d) Modified Endowment Contract (MEC)

i) MEC tax treatment

ii) Technical definition of a modified endowment contract

iii) The seven-pay test

iv) Refund of Excess Premiums

v) Benefit reductions within the first seven contract years

vi) Reductions of Benefits Attributable to Nonpayment of Premiums

vii) Conclusion on the MEC rules

            c) Policy Loans


4) Whole Life Insurance

            a) 10 Pay and 20 pay Whole Lives

            b) Full Pay Whole Life

            c) Whole Life Insurance Conclusion


5) Universal Life

            a) Fixed Universal Life

b) Accumulation Universal Life

c) No-Lapse (Secondary Guarantee) Universal Life (Also known as “no-cash value” UL)


6) Variable Universal Life


7) Equity Indexed Universal Life (EIUL)

a) How are investment returns calculated in an EIUL?

b) Pros and Cons of the “new” EIUL policy:


8) Survivorship or "2nd-to-die" Life Insurance

Policy Riders


10) Underwriting


© 2017 The Wealth Preservation Institute • St. Joseph , MI • (269) 216-9978