Inforce Certification - Module 17: Policy Surrenders

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services.

Module Overview:

Module 17: Policy Surrenders

This module covers policy surrenders, where a policy owner cancels coverage. It explains the surrender process, cash value returns, tax implications, and handling large loans. It also discusses the process of when a term policies lapse and those implications.

Learning Objectives

• Define policy surrender and its implications.

• Understand who can request a policy surrender and the process of doing so.

• Explain how cash value and unused premiums are returned to the owner upon surrender.

• Recognize the potential tax consequences associated with policy surrenders, especially those involving large loans.

• Describe how term policies lapse due to non-payment.

COURSE CONTRIBUTORS