Life Insurance
Chapters in this video
- 0:00 When life insurance crosses into SEC territory
- 0:47 The regulatory stakes: Adam the advisor's licensing test
- 1:15 Term life: pure death benefit, zero cash value
- 1:59 Whole life: the concrete bunker of permanent coverage
- 2:42 Universal life: flexibility with insurer-set rates
- 3:37 Variable life: sub-accounts shift risk to the policyholder
- 5:03 Variable Universal Life (VUL): maximum flexibility and complexity
- 5:57 The complete risk shift cheat sheet
- 6:47 Equity indexed annuities: why they break the pattern
- 7:51 Rapid-fire exam recap
What this video covers
- Why term life is pure insurance with zero cash value and zero security status
- How whole life guarantees fixed premiums, fixed death benefit, and cash value at a rate set by the insurer
- What universal life adds: flexible premiums, adjustable death benefit, and insurer-set interest rates with a guaranteed minimum
- Who bears the investment risk for whole life and universal life, and why that means neither is a security
- Why variable life is a security: sub-accounts, no guaranteed cash value, and investment risk shifted to the policyholder
- The critical exam trap that variable life guarantees a minimum death benefit but guarantees zero cash value
- How variable universal life (VUL) combines flexible premiums with sub-accounts, and why it is the most flexible yet most complex insurance product
- The word "variable" as the single trigger for prospectus requirements, dual licensing, and SEC/FINRA regulation
Read the full lesson, free
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