This lesson examines the core categories of insurance products offered to individuals and businesses.
6.1 Life Insurance
Life insurance provides a financial benefit to the policyholder’s beneficiaries upon their death . Key products in this category include :
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Term Life Insurance:Â Provides coverage for a specific period. It is pure protection, with no savings element.
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Whole Life Insurance:Â Provides coverage for the entire lifetime of the insured, with a savings component that builds cash value .
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Endowment Insurance:Â Pays a benefit if the insured survives a specific term, providing both protection and a savings element .
Other products include annuities and retirement plans, which provide income during retirement . Topics include the features of different life insurance policies, demand for life insurance, and valuation approaches .
6.2 General (Non-Life) Insurance
General insurance covers most other forms of risk, providing protection for property, liability, and other perils . Key products include :
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Property Insurance:Â Protects against damage to property from perils like fire, theft, and weather .
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Liability Insurance:Â Protects against legal liability for injuries or damage caused to others .
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Automobile Insurance:Â Covers vehicles and liability arising from their use .
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Health Insurance:Â Covers medical expenses .
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Commercial Insurance:Â Policies designed for businesses, such as commercial property and liability, workers’ compensation, and business interruption insurance .
6.3 Specialized and Emerging Products
In addition to the core products, the industry offers specialized insurance for unique risks, including marine, project and engineering insurance, and cyber liability insurance . The curriculum often includes a variety of personal and commercial lines, including employees’ benefits and retirement plans . Understanding these diverse products is essential for advising clients and managing risk in a complex world.