Educational objectives for the post April 2012 testing

1. CPCU 556 Personal Financial Planning Review Aid
Educational Objectives 1 Intro to Fin Planning
Describe personal financial planning goals and the personal financial planning cycle
Explain how individuals and families use financial planning techniques to achieve personal
financial planning goals
Summarize the types of personal insurance that can be used by individuals and families to
transfer risk
Demonstrate how each of the steps in personal financial planning process guides individuals and
families in their personal financial planning decisions.
Educational Objectives 2 Life Insurance
1. Describe the financial impact of the premature death personal loss exposure on the following
types of family structures
a. Singles w/o children
b. Single-parent families
c. Two-income family
d. Traditional families
e. Blended families
f. Sandwiched families
2. Describe the needs approach and the human life value approach for determining the
appropriate amount of life insurance
3. Describe the basic concepts underlying the major types of life insurance
4. Describe the characteristics, types, and purpose of term life insurance
5. Describe the characteristics, types, and purpose of whole (ordinary) life insurance
6. Describe the characteristics and purpose of universal life insurance
7. Describe the characteristics of variable universal life insurance
8. Explain how life insurance can be used to enhance the value of a business and provide business
continuity
9. Given an individual’s or a family’s financial information, risk tolerance, and premature death
exposures, apply the personal financial planning process to select an appropriate life insurance
plan.
Educational Objectives 3 Annuities
1. Describe the parties to and fundamental purposes of an annuity
2. Describe the characteristics of the major categories of annuities
3. Describe the financial elements of a variable deferred annuity
4. Compare annuities and life insurance
5. Explain how an annuity is used to fund a structured settlement
6. Given an individual’s or a family’s financial information, risk tolerance, and retirement funding
goals, apply the personal financial planning process to select an appropriate annuity
Donna M. Kesot, CPCU Page 1
The Institutes Financial Planning©

2. CPCU 556 Personal Financial Planning Review Aid
Educational Objectives 4 Disability and Health Insurance Planning
1. Describe the financial impact of disability and other health-related personal loss exposures on
individual and families.
2. Summarize the distinguishing characteristics of each of the following types of disability income
insurance
a. Individual disability income insurance
b. Group disability income insurance
c. Social Security disability income program
3. Describe the characteristics of the following non-governmental programs for providing
healthcare benefits
a. Traditional health insurance plans
b. Managed-care plans
c. Consumer-directed health plans
4. Describe each of the following programs for providing health-care benefits
a. Original Medicare
b. Medicare Advantage
c. Medicare Supplemental Insurance
d. Medicare Part D Prescription Drug Coverage
e. Medicaid
5. Describe the considerations an individual should review when choosing a long-term care
insurance policy, including typical benefits provided or excluded, coverage triggers, eligibility
provisions, and other economic issues
Educational Objectives 5 Postsecondary Educational Funding
1. Describe the planning considerations for funding postsecondary education and how they relate
to the annual funding estimate
2. Explain how to determine need-based financial aid for postsecondary education
3. Describe the advantages and disadvantages of various types of postsecondary education funding
sources
4. Given an individual’s or family’s financial information, risk tolerance, and postsecondary
education funding goals, apply the personal financial planning process to develop an
appropriate postsecondary education funding plan.
Educational Objectives 6 Retirement Planning
1. Describe the financial impact of the retirement personal loss exposure on individuals and
families
2. Describe the steps in the retirement planning process
3. Explain how to determine annual savings needs for retirement
4. Given an individual’s or a family’s financial information and retirement goals, apply the
retirement planning process to develop an appropriate paln
Donna M. Kesot, CPCU Page 2
The Institutes Financial Planning©

3. CPCU 556 Personal Financial Planning Review Aid
Educational Objectives 7 Retirement Funding
1. Describe (a) the evolution of retirement funding, (b) retirement funding categories, and (c) tax
advantages available for funding retirement.
2. Explain how employer-sponsored retirement plans are categorized
3. In terms of operation, eligibility, and advantages and disadvantages, compare these types of
employer-sponsored retirement plans
a. Qualified defined benefit plans
b. Qualified defined contribution plans
c. Nonqualified plans
4. Compare the various types of individual retirement accounts (IRAs)
5. Describe the advantages and disadvantages of a nonqualified annuity as a retirement funding
vehicle
6. Describe the following with regard to the US Social Security program
a. The basic characteristics of OASDHI
b. Covered occupations
c. The eligibility requirements for insured status
d. The types of benefits provided
7. Describe the retirement income choices for an individual or a family
8. Given an individual’s or a family’s financial information and retirement goals, recommend an
appropriate retirement savings and income strategy
Educational Objectives 8 Estate Planning
1. Describe the goals of estate planning and the parties involved in it
2. Describe the steps in the estate planning process
3. Recommend techniques an individual or a family can use to minimize federal gift and estate
taxes
4. Describe the benefits of using wills, trusts, and life insurance as estate planning tools
5. Given an individual’s or a family’s financial information and estate planning goals, recommend
an appropriate estate plan
Educational Objectives 9 Investment Basics
Describe basic investment risk and return concepts
Describe types of investment risk
Describe the types of investment strategies
Describe the characteristics of various types of investments
Given an individual’s or a family’s savings goals and tolerance for various investments risks,
recommend an appropriate investment strategy
Donna M. Kesot, CPCU Page 3
The Institutes Financial Planning©

4. CPCU 556 Personal Financial Planning Review Aid
Educational Objectives 10 Income Tax Planning
Describe basic concepts that apply to federal income tax for individuals
Describe the income taxation of life insurance and annuities
Describe the income tax concepts that apply to postsecondary education funding
Describe the income tax concepts that apply to retirement funding
Describe the income tax concepts that apply to the taxation of transferred property
Given information on a families retirement plan and its current and future tax brackets,
develop a tax minimization strategy
Donna M. Kesot, CPCU Page 4
The Institutes Financial Planning©