Life & Health Insurance Product Knowledge

01Term vs. Whole vs. Universal Life

Term life is temporary, no-cash-value coverage for a fixed period at the lowest premium. Whole life is permanent with fixed premiums and guaranteed cash value growth; universal life is permanent but lets the policyholder flex premiums and the death benefit, with cash value tied to current interest crediting rather than a fixed guarantee.

02Beneficiary Basics

A primary beneficiary receives the death benefit if living; a contingent (secondary) beneficiary only receives it if the primary predeceases the insured or can't be located. Beneficiary designations should be reviewed after major life events.

03Contestability Period

Nearly all life policies include a contestability period, typically about two years from issue, during which the insurer can investigate and deny a claim or rescind the policy for material misrepresentation on the application. After that period, the incontestability clause generally bars denial for application errors absent proven fraud.

04Replacement Rules Concept

When a new policy replaces an existing one, the client restarts the contestability and suicide-exclusion clock and may face new surrender charges or lose old guarantees. Agents must disclose the replacement and ensure it's genuinely in the client's best interest.

05HSA Eligibility with HDHP

To contribute to a Health Savings Account, a person generally must be enrolled in a High-Deductible Health Plan (HDHP) meeting IRS minimum deductible thresholds ($1,700 self-only / $3,400 family for 2026) and have no other disqualifying coverage.

06Medicare Supplement vs. Medicare Advantage

Medigap (Medicare Supplement) pairs with Original Medicare to help cover its gaps and lets the insured see any provider that accepts Medicare nationwide. Medicare Advantage (Part C) is a private plan that replaces Original Medicare, usually uses a network, and often bundles Part D — the two cannot be held together.