Is The Life And Health Insurance License Exam Difficult
The average pass rate for the life and health insurance exam sits around 50% for first-time test-takers. Improving chances for success will mean budgeting the time you know you need to study and retain the material.
Knowing how you best learn and take tests, having the best tools and courses available, and budgeting your study time wisely can increase your chances of passing the exam.
The most successful participants are ones that feel they were reviewing the information, rather than seeing it for the first time and winging it.
Types Of Life Insurance
There are two major types of life insuranceterm and whole life.1. Term LifeTerm insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions. There are two basic types of term life insurance policieslevel term and decreasing term. Level term means that the death benefit stays the same throughout the duration of the policy. Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policys term.
2. Whole Life/Permanent LifeWhole life or permanent insurance pays a death benefit whenever the policyholder dies. There are three major types of whole life or permanent life insurancetraditional whole life, universal life, and variable universal life, and there are variations within each type.
In the case of traditional whole life, both the death benefit and the premium are designed to stay the same throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company keeps the premium level by charging a premium that, in the early years, is higher than what is needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.
Protect And Prepare Your Loved Ones
The death of a loved one is not only emotionally devastating, but affects every aspect of an individuals life. Suddenly, everyday expenses are much harder to prepare for. Planning ahead by selecting the right life insurance option is the first step to protecting and preparing your family for whatever is ahead. Find a flexible, comprehensive coverage option that will secure your loved ones financial future before its too late.
As one of the less expensive types of life insurance, term coverage provides temporary financial protection for your loved ones throughout your working years. Its death benefit pays the money directly to your beneficiaries in order to help with funeral costs and ongoing financial obligations, such as daily living expenses, your childrens education, and future mortgage payments.
For complete details of the best plan for you and your family, talk to your companys benefits administrator or contact MetLife directly for more information.
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How Much Do Canada Life Personal Health Insurance Plans Cost
A comprehensive Canada Life health insurance policy including dental for a 40-year-old single, non-smoker woman in Ontario would cost $161.22 per month.
Your premium will be based on your individual circumstances. Canada Life will weigh a number of factors to determine your premium such as:
- the number of lives on your plan
- smoker status
To make sure you are getting the best plan for the best price, you must first establish what you want from your health insurance policy.
The price of health insurance varies greatly between insurers. Your health history, age, the coverage options offered, your province, and more affect pricing. Use our comparison tool to get personalized health insurance quotes, all anonymously.
How To Study For The Life And Health Insurance Exam
Many states require test-takers to complete an authorized pre-licensing education course. Even if it is not a required part of your insurance license process, a pre-licensing education course is the best way to prepare for the life and health insurance exam.
For pre-licensing education courses, StateRequirement recommends:Kaplan Education Company
Pre-license education requirements are typically around 20 hours for the life insurance exam, 20 hours for the health insurance exam, and 40 hours for a combined exam, but can vary depending on your state.
You can choose between an in-person course, workbook, self-guided online course, or facilitated online course. Consider your other commitments and style of learning to determine the best fit for you.
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The Islamic Perspective: Term Life Insurance
This kind of insurance is very much equivalent to all the other kinds of protective insurance that were discussed in the previous article. The same arguments apply, namely:
There may however be a few unique objections to life insurance in particular which cannot be levelled against other kinds of insurance, so lets test if theyre compelling.
Arguments against life insurance in particular
The first one is that, unlike other kinds of insurance, life insurance seeks to insure against loss of life and the sustenance of ones family after ones death.
The nusus say:
When Ibrahim said: My Lord is He who gives life and causes to die
And He is the one who gave you life then He causes you to die and then will give you life.
There is not a single moving creature on the earth but Allah is responsible for providing its sustenance.
Do not kill your children for fear of poverty. We will give sustenance to all of you. To kill them is certainly a great sin.
do not throw with your hands into destruction
Indeed, Allah has purchased from the believers their lives and their properties for that they will have Paradise.
What Are The Different Types Of Health Insurance
There are several different types of health insurance in the U.S., including public coverage and private coverage.
Private healthcare coverage can be provided by an employer or purchased in the individual/family market. Members of the armed services and their families are covered under Tricare, and people employed by the federal government are covered under FEHB.
Both public and private plans tend to use a managed care model , in which a private insurer will manage and oversee the provision of services, the quality of the care provided, the reimbursement system, the provider network, and rules such as prior authorization or step therapy.
In the individual/family market, all major medical healthcare plans with effective dates of January 2014 or later are governed by the Affordable Care Act and required to be compliant with its provisions, regardless of whether theyre sold in the exchange or outside the exchange. These plans all offer coverage on a guaranteed-issue basis, regardless of an applicants medical history. But coverage is only available during open enrollment or a special enrollment period triggered by a qualifying event.
There are still grandmothered and grandfathered plans in effect in the individual and small-group markets in many states , but these plans have not been able to enroll new members except for new family members or new employees on existing employer-sponsored plans since 2013 or 2010, respectively.
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How To Pass The Life And Health Insurance Exam
Once you have completed your pre-licensing education course, its time to take the life and health insurance exam. Depending on your state, you may be able to take them in one combined exam or have to register for two separate tests. Your pre-licensing course will go over which exams you can register to take.
Passing all insurance exams is all about preparation. Most states allow a period of around 90 days to take the exam after you complete your course.
The sooner you register for and take the exam, the more fresh the information will be in your mind. Do not wait the full 90 days unless you have scheduling conflicts that prevent an earlier test date.
Do You Need Life Insurance After You Retire
There’s no one-size-fits-all answer. If, after you retire, you dont have issues paying bills or making ends meet, and your children are all self-sufficient, you likely dont need life insurance.
If you still have a lot of outstanding debt obligations or have children or a spouse that is dependent on you, keeping life insurance is a good idea. If you have considerable assetsenough to trigger estate taxeslife insurance placed in an irrevocable trust might be a way to get money out of your estate.
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How Do I Renew My Life And Health Insurance License
Each state has different steps and requirements necessary to complete the renewal of a specific insurance license. Most states have a renewal period of about two years and have renewal fees ranging from $15 $200 per line.
All states also require the completion of continuing education courses in order to renew your license. The average number of hours to be completed is sixteen thirty hours per line. These courses must be completed prior to your licenses date of expiration or a penalty fine will be added to your renewal fee.
- Find CE requirements for insurance agents | Insurance Continuing Education
- Looking for a new position? Check out StateRequirement Jobs a job board just for insurance professionals | Insurance Job Board
- Find what it takes to become a real estate agent | Real Estate Licensing
Information on this page has been gathered by a multitude of sources and was most recently updated on July 2020.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your states authority on insurance.
When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. Learn More
Life Vs Health Insurance
Life insurance pays out a lump sum to your beneficiaries in the case of your premature death. The idea is that the death benefit should be sufficient to replace future income loss, as well as cover expenses and obligations outstanding such as funeral costs, medical expenses, and other debtsor to fund college savings accounts or retirement years. This gives the family financial continuity so they do not struggle, despite the loss of you and your wage-earning capacity.
Health insurance, on the other hand, helps pay for medical expenses such as doctor’s visits, hospital stays, medications, tests, and procedures. This helps ensure that people can afford medical care and stay healthy.
The reality is that a lot of people genuinely need both types of protection, especially if they have dependents. If thats the case, the better idea is to limit coverage to what you truly need so you can afford both types of insurance.
Keep in mind that insurance needs can change dramatically during different life stages. What might seem essential for a parent with teen children might not be so important for a recent college graduate or a retiree.
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What Happens If You Fail A Life Insurance Medical Exam
If the information you submitted on the original application does not match the data collected during your medical exam, then you may be denied coverage, or you may receive a request for additional testing. Be careful because your life insurance policy may not be in force as a result of the change of circumstance.
If you failed the medical exam or feel something on the medical exam was inaccurate you’ll want to ask the insurance company to send a copy of your medical exam results to you, or your doctor. This way if you failed because you have a health problem you can address that with your doctor. But, if you failed because of a mistake by the insurance company, you and your doctor can remedy the situation immediately. That way, your mistaken results will not stay on your health record and cause you to be denied for other insurance.
If you have failed a life insurance medical exam and have been denied coverage, you should contact a life insurance broker who has access to several life insurance policy types and companies. A broker may be able to find you coverage.
How To Choose A Life Insurance Coverage Amount
A good rule of thumb for estimating how much coverage you need is to:
The resulting number is how much life insurance you need. It may look high, especially if youve factored in income replacement for many years. Still, life insurance quotes are free, so it doesnt hurt to price out the coverage you need.
If it turns out to be unaffordable, you can buy what you can afford now to lock in a good rate. You can buy more later, just be aware that several years from now your rate will be based on your older age and any health conditions youve developed.
Here is a calculator to help you estimate how much life insurance you will need.
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Term Vs Whole Life Insurance
Term life insurance differs from whole life insurance. A term life policy has a death benefit, meaning the benefit is paid when the insured dies. A term life insurance policy has a set duration on the coverage period, after which the coverage expires .
In contrast, whole life insurance plans have living benefits and often feature savings components that build up over time. As the name implies, permanent or whole life insurance plans extend until the policy owner dies or reaches 100 years of age.
What Is Health Insurance And Why Do I Need It
Health insurance also referred to as medical insurance or healthcare insurance refers to insurance that covers a portion of the cost of a policyholders medical costs. How much the insurance covers and how much the policyholder pays via copays, deductibles, and coinsurance depends on the details of the policy itself, with specific rules and regulations that apply to some plans.
If you dont have health insurance and you end up needing medical care, you can be left with insurmountable medical bills or even face situations in which medical providers refuse to treat you. Only screening and stabilization in a hospital emergency department are guaranteed if youre uninsured. Other than that, its up to the provider to decide whether to treat you if your ability to pay for the care is in question. Even if your out-of-pocket costs seem high under the health plans available to you, having a health insurance card might make the difference between being able to obtain care or not.
Its also important to understand that you cannot just purchase health insurance when a medical need arises. Regardless of whether youre buying your own coverage or enrolling in a plan offered by an employer, theres an annual open enrollment period that applies, and enrollment outside of that window is limited to special enrollment periods triggered by qualifying events.
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Life Insurance Health Classes Explained
Meredith Mangan is the senior insurance editor for The Balance. She brings to the job 15 years of experience in finance, media, and financial markets. Prior to her editing career, Meredith was a licensed financial advisor and a licensed insurance agent in accident and health, variable, and life contracts. Meredith also spent five years as the managing editor for Money Crashers.
A life insurance health class, or rate class, is a risk category an insurance company assigns you based on your health, habits, and medical records. Your health class plays a large part in determining the premium on your life insurance policy.
Learn what a life insurance health class is, how it works, and common life insurance health classifications.
How Does A Life Insurance Health Class Work
In order to provide life insurance to a range of people, insurance companies need to appropriately group applicants according to their degrees of riskwhich roughly translates to how long they expect you to live for.
To do that, insurers consider the entirety of your application, including your answers to questions about your health, health history, familys health history, lifestyle, habits, and occupation, as well as your age and sex. They also may access your driving records, prescription history, and credit score to help determine which risk class to put you in.
Once this information is reviewed, the underwriter creates your risk profile and places you in the corresponding health or rate class.
A risk class is a group of insurance applicants who present to the insurer an equivalent mortality risk for life insurance.
The process of health-risk classifications protects insurance providers by letting them charge premiums that match the level of risk. Risk classification also ensures a fair underwriting process otherwise, healthier insurance applicants would unfairly subsidize individuals who are less healthy to make up for the earlier claims made by the unhealthy individuals.
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