INSU07022 2022 QFA Life Assurance - Theory

Identify the authorisation, regulation and operating structures of life assurance companies.

Evaluate protection policies, including life assurance cover, serious illness cover and business insurances, and savings and investment policies and tracker bonds issued by life assurance companies.

Demonstrate an understanding of the protection needs of consumers as outlined in the Consumer Protection Code.

Recognise the main features of valid wills and the principal provisions of the Succession Act, 1965.

Evaluate personal taxation liabilities, including incorporating the taxation treatment of consumers in relation to policies issued by life assurance companies; and

Calculate sums accumulated or discounted at compound interest and the impact of inflation over time on a consumer’s financial needs and resources.

This module is delivered with a blend of self-directed study supplemented by e-learning resources such as pre-recorded webinars and revision masterclasses. The teaching and learning modes will include:

Textbook

The Textbook is revised on an annual basis to reflect changes in legislation and regulation.  It is equivalent to the lecture notes students would receive in formal education institutions.

Revision Masterclass

Online lectures utilise lecture notes with extra reading material.  In these sessions real time practical examples will be used.  These classes provide the opportunity for the lecturer to maximise the use of formative assessment which helps the lecturer identify areas which the students are having difficulty with, so that adjustments can be made to the lecturing techniques, content of lessons and academic support.

In class discussion

Based on the theories/concepts underpinning business, in class discussion will be used to establish the level of understanding of the retail financial products.  Students will be encouraged to identify the application within their own place of employment and from the general business environment.

Self-Directed Questions

Self-Directed Questions will be used to determine their ability to review, fact-find and make recommendations while applying the knowledge they have acquired from the course textbook. 

Individual Work

Working as an individual will allow for the further development of self-discipline and enquiry.  

Personal Reflection

The personal reflection allows the student to look back over the learning experiences and identify areas for improvement and areas that worked well.

This module will be assessed 100% by final examination. Students who pass QFA - Financial Planning will be exempted from this module.

The repeat assessment will be 100% final examination.

Personal Financial Needs

• Main Types of Personal Financial Needs
• Benefits of Financial Planning
• Life Assurance Policies to Meet Financial Needs
• Life Cycle
• Examples of Personal Financial Needs

Life Assurance Cover

• Introduction
• Temporary Assurances
• Whole of Life Cover
• Ancillary/Optional Benefits
• Benefits
• Restrictions

Serious Illness Cover

• Lump Sum Cover
• Illness Income Cover
• Other Covers

Quantifying Protection Needs

• Protection Needs
• Quantifying Life Assurance Cover
• Quantifying Serious Illness Cover

Wills and Estates

• Estate
• Wills
• No Will
• Credit Union Savings

Business Insurances

• Business Structures
• Partnership Insurance
• Key person Insurance

Comparing Protection Cover

• Introduction
• Comparison
• Convertible Term Assurance v Whole of Life Cover
• Individual Mortgage Protection v Group Mortgage Protection
• PHI v Serious Illness Cover

Investment Bonds         

• Unit Linked Investment Bonds
• Tracker Bonds

Savings Plans

• Unit Linked Savings Plans
• Assessing Savings Needs
• Benefits
• Limitations
• Risks
• Comparing Unit Linked Savings Plans

Taxation            

• Income Tax
• Universal Social Charge (USC)
• Tax Calculation Example
• Income Tax Exemption Limit

Providing Advice            

• Personal Financial Needs
• Authorisation
• The Financial Planning Advisory Process
• Consumer Protection Code
• Financial Needs and Objectives
• Assessing Suitability
• Assessing a Client’s Attitude to and Capacity for Investment Risk
• Making a Recommendation
• Example: Protection Need
• Execution Only
• Provision of Information about an Investment Policy

Starting a Policy             

• A Legal Contract
• Step 1: The Proposal Form
• Step 2: Underwriting
• Principle of Utmost Good Faith
• Step 3: Acceptance
• Step 4: Issue of Policy
• Reinsurance
• Annual Statement of Value