1 · Types of Life Insurance

Term Life — Pure death benefit. No cash value. Level, decreasing, or increasing. Expires at end of term.
Whole Life — Permanent. Fixed premium. Builds cash value. Guaranteed death benefit. Types: straight life, limited pay, single premium.
Universal Life — Flexible premium and death benefit. Separate cash value account. Can adjust coverage up/down.
Variable Life — Cash value invested in sub-accounts (securities). Requires Series 6 license. Death benefit can vary.
Endowment — Pays face amount if insured lives to maturity OR dies before. Higher premium than whole life.
Key Terms: Face Amount · Premium · Death Benefit · Cash Value · Surrender Value · Paid-Up Insurance · Extended Term

2 · Life Insurance Policy Provisions

Free Look Period — 10 days to return policy for full refund (TN).
Grace Period — 31 days after missed premium before policy lapses.
Reinstatement — Can reinstate lapsed policy within 3 years with proof of insurability + back premiums + interest.
Incontestability — After 2 years insurer cannot contest policy for misrepresentation (except fraud).
Suicide Clause — If insured dies by suicide within 2 years, insurer returns premiums only — no death benefit.
Misstatement of Age — Insurer adjusts benefit to what premium would have bought at correct age.
Beneficiary Types — Primary vs Contingent · Revocable vs Irrevocable · Per Stirpes vs Per Capita

3 · Health Insurance Basics

Deductible — Amount insured pays before insurance kicks in.
Coinsurance — % split between insured and insurer after deductible. (80/20 = insurer pays 80%, you pay 20%)
Copay — Fixed dollar amount per visit/service.
MOOP — Maximum Out of Pocket. After this, insurer pays 100%.
Premium — Monthly cost of the plan regardless of usage.
Network Types — HMO (must use network, referrals required) · PPO (flexible, no referral) · EPO (network only, no referral) · POS (hybrid)
Pre-existing Conditions — ACA prohibits denial or higher premiums based on health history for ACA-compliant plans.
COBRA — Lets you keep employer coverage 18 months after leaving job. You pay full premium + 2% admin fee.

4 · Disability & Supplemental Coverage

Short-Term Disability — Replaces income for short period (weeks to months). Elimination period: 0–14 days.
Long-Term Disability — Replaces 60–70% of income. Elimination period: 90–180 days typically.
Own Occupation — Can't do YOUR specific job. More expensive. More favorable for insured.
Any Occupation — Can't do ANY job. Harder to claim. Less expensive.
Accident & Health — Covers injuries from accidents and illness.
AD&D — Pays additional benefit if death or dismemberment results from an accident.
Hospital Indemnity — Fixed daily benefit for each day hospitalized. Pays regardless of other insurance.

5 · Medicare & Medicaid

Medicare Part A — Hospital coverage. Most get it free (worked 40 quarters). Covers inpatient, skilled nursing, hospice.
Medicare Part B — Medical coverage. Monthly premium (~$174/mo). Covers doctor visits, outpatient, preventive.
Medicare Part C — Medicare Advantage. Private plans that bundle A+B+often D.
Medicare Part D — Prescription drug coverage. Sold through private insurers.
Medigap — Supplements Original Medicare. Covers gaps like deductibles and coinsurance.
Medicaid — State + federal program for low income. Eligibility based on income. No premium for most.
Medicare Eligibility — 65+ OR under 65 with qualifying disability OR end-stage renal disease.

6 · Insurance Concepts & Definitions

Insurable Interest — Must exist at time of application. You must have financial interest in the insured's life.
Indemnity — Restores insured to pre-loss financial position. Can't profit from insurance.
Subrogation — Insurer steps into insured's shoes to recover from liable third party.
Utmost Good Faith — Both parties must be honest. Concealment or misrepresentation voids the policy.
Adhesion — Policy written by insurer, accepted or rejected as-is by insured. Ambiguities favor insured.
Aleatory — Unequal exchange — insured pays premiums, insurer may pay much more (or nothing).
Waiver vs Estoppel — Waiver = voluntarily giving up a right. Estoppel = can't take back a representation the other party relied on.

7 · TN State Laws & Ethics

License Requirements — Must be 18+. Pass exam. Submit application + fingerprints. Renew every 2 years.
Continuing Education — 24 hours every 2 years. 3 hours must be ethics.
Twisting — Misrepresenting a policy to induce replacement. Illegal.
Churning — Replacing policies to generate new commissions without benefit to client. Illegal.
Rebating — Giving client part of commission as incentive to buy. Illegal in TN.
Misrepresentation — Making false statements about a policy. Grounds for license revocation.
Free Look — TN requires 10 days free look on life policies. 30 days on Medicare supplement policies.
HIPAA — Protects privacy of health information. Limits pre-existing condition exclusions in group plans.

Daily Study Plan — Week 2

Noon Session Guide — Weeks 2 & 3

For whoever is running the training — Tue/Wed/Thu both weeks

Format (each session ~45-60 min):
→ 0:00–0:10 — Open with "what did you study yesterday?" Quick verbal recap from agents
→ 0:10–0:35 — Teach the day's topic (use talking points below)
→ 0:35–0:50 — Quiz agents with 5-10 questions on the topic
→ 0:50–1:00 — Preview tomorrow's topic + what to study tonight

Medicare Session Talking Points:
→ "Medicare has 4 parts — think of them like channels on a TV. A is hospital, B is doctor, C is a bundle package, D is the drug store."
→ "Most people get Part A free — you need 40 work quarters. Part B costs about $174/month."
→ "Medigap fills the gaps — it's NOT Medicare. It supplements it."
→ "Dual eligible = both Medicare AND Medicaid. Medicaid can help pay Medicare costs."
→ Key trap: "Medicare does NOT cover long-term custodial care. Medicaid does."

Policy Provisions Talking Points:
→ "31 days grace, 10 days free look, 2 years incontestable, 3 years reinstatement — tattoo these numbers."
→ "Grace period = insurer still owes you. Free look = YOU can walk away."
→ "Guaranteed renewable = insurer MUST renew but CAN raise premiums class-wide."
→ "Non-cancellable = insurer cannot cancel AND cannot raise YOUR premium. Most favorable to insured."
→ Key trap: "Guaranteed renewable ≠ non-cancellable. Know the difference."

State Laws Talking Points:
→ "Twisting = lying to get a replacement. Churning = replacing just for commission. Both illegal."
→ "Rebating = sharing your commission with the client. Sliding = adding coverage without telling them."
→ "If the exam gives you an ethics question — the most ethical answer is always the right one."
→ "24 CE hours every 2 years. 3 of those must be ethics. License renews every 2 years."
→ Key trap: "They'll ask who regulates insurance in TN — answer: Tennessee Department of Commerce and Insurance."

Week 2 — Agent Checklist

☐ All Xcel Health modules completed
☐ All Xcel Life modules completed
☐ Attended all 3 noon sessions (Tue/Wed/Thu)
☐ Completed TN Health Simulator — score recorded
☐ Completed TN Life Simulator — score recorded
☐ Reviewed ALL missed questions with explanations
☐ 800+ dials for the week
☐ Pearson VUE exam scheduled for Week 3
☐ Numbers memorized: 10/31/2yr/3yr (free look/grace/incontestable/reinstatement)
☐ Can explain Medicare Parts A-D from memory

Daily Cram Schedule — Week 3

Week 3 — Pre-Exam Checklist

☐ Simulator score 75%+ on both Health AND Life
☐ All 14 numbers from the Numbers Drill memorized
☐ Can explain Medicare A/B/C/D from memory in 60 seconds
☐ Can explain twisting, churning, rebating, sliding — no hesitation
☐ Attended all 3 noon sessions (Tue/Wed/Thu)
☐ Know exam location and have directions ready
☐ Have both IDs ready (govt photo ID + signature ID)
☐ Alarm set — arriving 30 minutes early
☐ Stopped new studying by Wednesday night
☐ Got 7-8 hours of sleep Thursday night