Life Insurance - Assessing Client Needs

Question 1

1. Types

Answer 1

1. Term Assurance
2. WOL

Question 2

2. Cover Required

Answer 2

1. Is it to replace an income?
2. Is it to pay off a mortgage?
3. Is it to provide for children?

Question 3

3. Who should be covered & for how long

Answer 3

1. Client only, single life
2. Client & spouse/partner
3. Joint life first death
4. Joint life second death

Question 4

4. Flexibility

Answer 4

1. Variable premiums
2. Variable sum assured

Question 5

5. Features required

Answer 5

1. CIC
2. Index linking
3. Guaranteed insurability option
4. WOP
5. Reviewable / convertible

Question 6

Other Considerations

Answer 6

1. Should the cover be part of a pension arrangement?
2. What is the impact of state benefits on the amount of cover needed?
3. Will the level of cover prevent state benefits from being claimed?
4. Can the client afford the premiums?