1.2 Industry Overview
It's a fact of life - Death will strike us all at some point in time; most of us never knowing when. We don't expect it; our loved ones don't expect it. Most of us assume it'll happen at a ripe old age somewhere way off in the distant future. No one wants to believe that it may strike prematurely, leaving our family and loved ones distraught. Wouldn't it be nice if we could make sure that those aggrieved do not have to suffer financially as well? We can - Life Insurance.
Life insurance is based on actuarial or mathematical principles and guarantees a specified sum of money upon the death of the person who is insured.
What about in the meantime? We're all going to suffer from some sort of health problem throughout our lives - it could just be the common cold, or it could be worse. Johnny wants a new pair of shoes, but his sister got the flu and Mom needs to spend the money on a doctor and medicine. Wouldn't it be nice if she didn't have to spend so much money to make his sister well and still be able to afford to buy Johnny the new shoes? She can - Health Insurance.
Health insurance evolved from scientific principles to provide funds for medical expenses due to sickness or injury and to cover loss of income during a disability.
What is Tom going to do to make sure that his wife continues to have an income if he dies before her? Wouldn't it be nice if he could provide her with a steady flow of income for the rest of her life? He can - Annuities.
Annuities provide a stream of income by making a series of payments to the annuitant for the annuitant's lifetime or for a specifically designated period of time.
Life insurance, health insurance, annuities, and Florida law are the focus of this course. By the time you've completed the course, you'll be ready to take the Florida Agent's Exam for Life (including Variable Annuity) and Health Insurance.
- What are the two basic reasons for insurance?
Overall Advantages of Insurance
- Compensation for the loss of income at the death of the insured
- Creation of an estate
- Future security (funds can be distributed according to needs)
- Compensation for lost earning power at retirement
- Financial protection against disability, death, or catastrophic illness
