"I didn’t become a stockbroker to sell life insurance,” the old-timer at the next desk grouses at the sales material sent down from the insurance department. You recall his earlier complaints about having to take the life and health insurance state licensing examination. The old-timer does have a point-keeping up with the bond and equity markets is, in itself, a full-time occupation. But you have come to understand that if you confine client discussions to stock and bond investments, you are diminishing your own value to that client. For some clients, retirement accounts, savings, and insurance represent the bulk of their financial activities; individually owned stocks, bonds, and mutual fund shares are often what is left over.

You do not want to deal with the leftovers, nor do you want to be a secondary player in the financial lives of your clients. So it makes good sense to be knowledgeable and effective in the area of life insurance. And since insurance death benefits often result in sizable lump sums to be invested, you need to be knowledgeable and available to provide that service. This module serves as an introduction to this area of financial services.

A life insurance policy is a contract between an insurance company and the policy owner that promises to pay a specified sum of money when the insured person dies, as long as the policy is in force. This definition seems straightforward enough, but many additional promises can be made in the contract. This module provides a survey of the typical life insurance products and discusses how they can be used to accommodate the needs of brokerage clients.

Author: Jennifer Coombs

Jennifer Coombs is an associate professor at the College for Financial Planning. Prior to joining the College, Jennifer spent a decade working in the financial services industry in New York City, with a special focus on equity research and analysis. She holds a Bachelor of Science degree in Finance and Political Science from Clarkson University. You can contact Jennifer at jennifer.coombs@cffp.edu.

Complexity Level: Intermediate