Fundamentals of Life Insurance

Course summary

While working in Life Insurance industry, knowledge of life insurance domain is essential to deliver the scope of responsibilities better. This course on 'Fundamentals of Life Insurance’ aims to provide an understanding on the need for Life Insurance, the importance of financial planning and the computation of HLV. The course deals with the types of life insurance policies that are available in general, the process of selection and classification of risks. The course also showcases the proposal forms and KYC documentation, processing insurance claims, policy renewals, persistency and lapsation. The course also provides knowledge of Unit Linked Insurance Plans and tax implication of life insurance policies.

Learning outcome

By the end of the course, learner will be able to:

  • Understanding on life insurance and how to prepare a financial plan.
  • Compute Human Life Value by gaining knowledge about the concept of HLV and its significance in life insurance.
  • Carry out the documentation process by understanding the procedure of filling proposal forms and KYC.
  • Describe the underwriting process and explain the process for insurance claims.
  • Explain how renewal of policy happens and the impact of persistency rate on the business.
  • Explain Unit Linked Insurance Plans, and the tax implications of life insurance plans.

Modules

Knowledge of financial planning is vital for any earning individual. Being in the domain for finance, it becomes indispensable for your role to have knowledge of financial planning. This module provides insight on financial planning and the strategies to help manage finances to meet ones' life goals.

The most important aspect of life insurance is the concept of human life value. This module gives an understanding on life cover, the ‘Value’ of a person who is to be insured in financial terms and the concept of Human Life Value.

With increasing need and variety of needs surfacing on the arena of life insurance, there are different types of life insurance policies. This module deals with the types of life insurance products and how to choose the right product based on the need.

The course helps learner acquire the knowledge of filling the proposal forms, become aware of the necessary proofs, and documents required for processing a policy.

Underwriting is the most critical aspect of life insurance processing since even a trivial mistake in underwriting will lead to gross damage to the insurance company. This module gives insight on how an insurance company examines, accepts or rejects the risk of the applicants through the process of underwriting.

Insurance is all about dealing with risks. Just as risk is unavoidable, so is the claim for any insurance company. This module explains what are insurance claims, its types and how the claims process take place.

The course gives an understanding of the need for policy renewal and persistency and how this will help in the reduction of lapsation.

The course gives an understanding of Unit Links Insurance Plans, who should invest in ULIPs, the charges applicable for ULIP, the type of funds and the underlying tax benefits.

The course deals with the tax implications of life insurance plans. The learner will get an understanding of how once can avail tax deductions through life insurance.

This module introduces learners to the core principles of life insurance. Learners will understand the significance of life insurance in financial planning and risk management.