Washington Insurance Exam

Top 6 Life Insurance Policies

Here are some of the top types of life insurance policies:

Term Life Insurance: This type of policy provides coverage for a specific period, such as 10, 20, or 30 years. If the insured dies during the term, the beneficiaries receive the death benefit. Term life insurance is often the most affordable option and is ideal for temporary needs like covering a mortgage or providing for children until they become financially independent.
Whole Life Insurance: A type of permanent life insurance, whole life insurance provides coverage for the insured’s entire lifetime as long as premiums are paid. It also includes a savings component called cash value, which grows over time and can be borrowed against or withdrawn. Whole life insurance offers guaranteed death benefits, level premiums, and a cash value component that grows at a guaranteed rate.
Universal Life Insurance: Another form of permanent life insurance, universal life insurance offers more flexibility than whole life. Policyholders can adjust their premiums and death benefits within certain limits. The policy also includes a cash value component that earns interest based on market rates or a fixed rate determined by the insurer. There are different types of universal life policies, including indexed universal life and variable universal life.
Variable Life Insurance: This type of permanent life insurance allows policyholders to invest the cash value in various sub-accounts, which can include stocks, bonds, and mutual funds. The cash value and death benefit can fluctuate based on the performance of these investments. Variable life insurance offers the potential for higher returns but also comes with more risk compared to whole and universal life policies.
Final Expense Insurance: Also known as burial or funeral insurance, this is a type of whole life insurance designed to cover end-of-life expenses, such as funeral and burial costs. It typically offers lower coverage amounts and is easier to qualify for, making it a popular choice for seniors.
Guaranteed Issue Life Insurance: This type of policy is a form of whole life insurance that does not require a medical exam or health questions. It is typically used by individuals who may have health issues that prevent them from qualifying for other types of life insurance. Guaranteed issue policies usually have higher premiums and lower death benefits.

Each type of life insurance policy has its own benefits and drawbacks, and the best choice depends on individual needs, financial goals, and health status. If you are interested in selling insurance products, get your insurance licenses to become an insurance producer in the State of Washington. Order the online study program, or sign up for exam prep class today!

5 Benefits of Using Our Online Classroom to Study for Your Insurance Exams

As an up and coming insurance agent, you have to take your state’s insurance exams. It’s a given; there’s no way around it. And before you can take that exam, you’ll have to study. There are several ways you can choose to study for your state test. Below we compare the different study methods for you, so you can decide for yourself.

Approach #1: Test Prep Manual

There’s an entire national industry devoted to developing and selling Washington State insurance exam test preparation manuals. And there’s a high demand for them, especially among busy insurance students. The manuals from the national companies are great – they provide appropriate information, graphs and charts, and practice tests. That’s their good points. Their bad points far outweigh their good, in our opinion. Let’s see…..they can be quickly outdated since they are not located in Washington State or printing material for our state alone. From the time it takes to write them and publish them, things can change. Important things like laws and best practices.

Approach #2: In-Person Classes (US!!)

You know the drill – go to class, learn some stuff, take a test. Live-lecture, in-person, insurance classes do offer several advantages over studying for the whole thing on your own. If you like the feel of a textbook-type manual, and you like to highlight or write notes in the margins, the textbook is a must purchase if you study yourself online. However, the manual comes for free when you attend a live-lecture test prep class. And then there’s the live instructor. It can be helpful to have someone to answer questions, and to give real-world examples. And even though you will have to fit a few class days into your already busy lifestyle and schedule, it can save you time and money in the long run if you pass your state test on the first time.

Approach #3: Online courses (US!!)

We offer the best possible choice, we believe, in our online courses. Why? We’ll give you five reasons.

Various learning materials – We offer interactive test prep quizzes, as well as reading materials. We try to accommodate many learning styles and personalities. We’re more than just a boring old book or a live lecture insurance crash course.
Flexibility – No class to arrange your life and work schedule around. Access the online classroom 24 hour a day, 7 days a week. Fit us in between meetings or household chores. We’re here when you want to be here.
Cost – Our online classroom is offered at a reduced cost from our instructor-taught live lecture classes. While these classes tend to produce more first time test success, self studying online is a great second option. There are companies out there who charge hundreds of dollars for just 30 days of access to the study materials. Slater Insurance School offers training at an affordable price.
Adaptability – We can add new and updated material to our online classroom, at any time, instantly. We don’t have to wait until the next edition of the textbook comes out. We can be up to date within days, if not hours, of changes to insurance laws or accepted practices. Our information is always on top and up to date.
Effectiveness – We have great first-time test success rate. Interactive test questions that simulate a real exam experience, whether solely online or blended with in-person classes, tend to see students performing better on exams and tests, and retaining what they’ve learned longer. Want to be a better student? Study with us.

Now that we’ve laid it all there for you, we think you’ll agree that our online classroom is THE place to be when studying for your insurance exams. Our variety, our flexibility, our cost, our adaptability and our effectiveness speak for themselves.

What Is Life Insurance?

We’re all familiar with the concept of life insurance. It’s a favorite motif in mystery television programs and novels. The young wife “bumps off” the old husband to get his million dollar policy. Or a friend covers up another’s suicide so as not to deny his wife and children of the life insurance pay off. We’re all familiar with it, but do we really KNOW what life insurance is all about? Today, we’re going to take a closer look and find out.

Brief History of Life Insurance

Life insurance has its root in the “burial clubs” of ancient Rome. You could pay a membership to the club to ensure that you received a “proper” and “appropriate” funeral, complete with professional mourners. Modern life insurance began in the early 1700s in London, with the Amicable Society for Perpetual Assurance. You joined the Society (males only) and paid a yearly amount for one to three shares. Once a year, the Society made a payment to your heirs based on how many shares you had been paying for. It was a way to ensure that you didn’t leave your wife and children destitute.

Life insurance was introduced into the United States in the 1760s, when Presbyterian and Episcopalian ministers developed a similar scheme for their ranks. By then, the practice of setting premiums based on age and overall health had been established. At the outbreak of the Civil War, over a dozen life insurance companies were begun, nearly all of them associated with specific occupations or firms. In the 1870s, the first military life insurance was founded, with both the Army and the Navy playing a part.

Types of Life Insurance

Life insurance typically takes one of three forms:

Term life insurance – issued for a set period of time, typically from 5 to 20 years. Premiums are set and guaranteed for the length of the policy.
Whole life insurance – issued for the policy holder’s lifetime. Premiums are set and typically do not change. Whole life has a cash value, which can be used as a savings component or even as an estate planning tool.
Universal life insurance – issued for the policy holder’s lifetime. Unlike whole life policies, the premiums are flexible, and can be raised or lowered throughout the lifetime of the policy holder. Like whole life policies, universal policies also have a cash savings component.

How Life Insurance Premiums Are Determined

Since the 1750s, when the first life table – a chart showing the risk of death at any age – was issued, premiums have been determined partially by the policy holder’s age at the time of the policy’s purchase. General health was taken into account not long after, as insurer’s began to see individual’s waiting until becoming ill or aged to purchase a policy.

Policy premiums are still determined by age and general health, although a recent change has been to take the individual’s family medical history also into account when determining how much your monthly premium will be. However, age and health have rarely, if ever, affected the total amount of the policy.

Life insurance is something we all know. And now, we know it a little better.

What to Expect From the Insurance Licensing Exam

However, with proper attention to your studies, a can-do attitude, and sufficient preparations, all of that hard work will pay off as you successfully pass your licensing exam. Here are some things you’ll need to know first.

10 Tips to Help you Study for Your Insurance Exams

Let’s face it – you have to take and, more importantly, pass your insurance licensing exam. It’s a harsh reality, but it doesn’t have to be a harsh experience. With adequate preparation and study, your insurance exam can be a pleasant, stress-free undertaking. Here’s some tips to help you survive your exams with your sanity, and your future career, intact.

Relax – It’s a big deal, I know.

But you can still treat it as just another milestone. Think positively about the experience of taking the exam. Visualize yourself knowing the answers and feeling confident and satisfied when you’ve completed the exam. Keeping a stress-free frame of mind will help prepare you emotionally for the “big day”.

Figure out how you study best.

Not everyone does well in study groups. Not everyone does best with only textual content. If you don’t already know, discovering the way in which YOU prepare best will go a long way to helping you prepare for your exam. Flashcards? Create them. An auditory learner? Record portions of your study guide or class materials and listen to them while you drive, workout, or relax. Don’t just follow the crowd if doing so will lead you to a lower performance come exam day.

Create a plan for exam prep at least a month before.

Allowing yourself adequate time to study and prepare will keep you from the stressful experience of “cramming” in the days and hours leading up to exam day. Repetitive, gentle review will also help you pinpoint problems or areas where you need extra help or additional material in plenty of time to arrange for it.

Complete all your test prep materials.

Any and all test prep materials should be used to their fullest potential. Spend the time to take the practice test online, for example, even if you feel you already know the subject matter. Use any study guides or booklets or sample exams made available to you. Not only will they give you a sense of what the real exam may be like, they’ll also help you to know how well you know the material the exam will cover.

Apply the 50-10 rule when studying.

Your brain and body can only handle so much material at any one time. Your brain needs time to process the material being covered, and your body needs a break from sitting and studying. The 50-10 rule is simple: Study 50 minutes, then take a 10 minute break. During that break, get up and move around. Get a snack, go to the bathroom, take a walk up and down the hall, or around the block. Do some jumping jacks or mountain climbers or yoga stretches. Basically, do SOMETHING in that 10 minute period of time to raise your heartbeat a bit, and get your body moving.

Take your time.

Most exams last from 1 to 3 hours. And you have, if you’ve followed our other tips, a month or more to prepare for those 1 to 3 hours. An hour or two a day, every day, in the month before your exam will add up to 30 to 60 hours of exam prep time. You can’t get that in a cramming session. Also, by studying for an hour or two a day, you’ll be preparing yourself for the time it may take to actually complete the exam.

Know when to stop.

It’s actually best if you don’t study within 24 hours of exam time. First, you need this time to physically prepare for the test. Secondly, you can cause yourself to get stressed out and lose the confidence and self-composure you’ve built up. Lastly, if you don’t know something by now, chances of you actually learning it and retaining it are scientifically proven to be slim to none.

Get a good night’s rest.

Going into exam day exhausted and cranky from a poor, or shortened, night of sleep isn’t going to do anything for your mental capabilities or your test score. Sleep deprivation can cause a lack of mental focus – the last thing you need to take with you into the exam room.

Get a good start to the day.

Eat a good breakfast. Your body is going to need all the energy it can muster today. Avoid consuming too much caffeine. There’s no sense going into your test with the coffee jitters. Get some gentle exercise – walk the dog, do some yoga, take a swim. Nothing too taxing or overstimulating, but enough to both burn off any nervous energy and help your body build up for the day ahead.

Relax.

There’s no sense in getting all out of sorts come exam day. You’ve spent the last 4 weeks preparing. You know the material. You know your capabilities.You are mentally, emotionally and physically prepared to tackle your exam. Go in there with the confidence that you will come out successful and satisfied. You can do this!

Do you have any tips that helped you pass your insurance exam?
Share them in the comments below:

A Sneak Peek inside the Property Insurance Course (Part 3):

PART 3 - PROPERTY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 3 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

Have you ever wondered what events and items might not be covered under your homeowner’s insurance policy? Here are some common exclusions, meaning, they are usually not considered a covered loss and the insurance company will not pay for the damages.

Loss due to ordinance or law regulating construction, repair or demolition.
Earth Movement means landslide, mudflow, earth sinking, rising or lifting, and earthquake including land shock waves before, during or after a volcanic eruption.
Direct or Indirect Loss from Water Damage – Water damage means loss caused or contributed by: sewer or drain backup, water from below the ground including seeps or leaks through any part of the building, sidewalk, driveway, foundation or swimming pool. Water damage includes flood, surface water, waves, tidal water, overflow of a body of water or spray from any of these, whether driven by wind or not.
Loss due to power interruption whose source is off the premises.
Loss due to neglecting to protect property after a loss.
War and nuclear perils.
Intentional loss or illegal activities committed by or at the direction of an insured.
The coverage for discharge, overflow, vandalism and malicious mischief, theft, attempted theft, or damage to glass, is suspended whenever the dwelling has been vacant for more than 60 consecutive days.
Damage from volcanic action is not covered unless one gets a special Volcanic Action coverage. This covers volcanic blast or airborne shock waves, ash, dust or particulate matter, and lava flow. Volcanic Action coverage does not pay for damage to land, property in the open or in open sheds and buildings, and personal property in buildings not completely enclosed.

Your duties after a loss, also called Notice of Claim, include notifying the insurance company immediately after the loss, notifying the police if a law has been broken, protecting the property from further damage, submitting a proof-of-loss and inventory of damages to your insurance company within 60 days of the loss, and making the property available for inspection if required.

Enroll in our next Property Class

A Sneak Peek inside the Property Insurance Course (Part 2):

PART 2 - PROPERTY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 2 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

How are loss settlements determined by insurance companies?

Actual Cash Value (ACV) means the cost of repairing the damage, minus reasonable depreciation (wear and tear, deterioration and obsolescence).
Replacement Cost (RC) means the current cost, at the time of loss, to repair or replace the damaged property with new materials of like kind and quality, without deduction for depreciation, but not more than the policy limit.
Stated Value Coverage, a.k.a. Agreed Value…..Property is insured for a set value. The value is determined on the policy date, not at the time of the loss. This is usually accomplished by scheduling a particular item on the policy.
(Fair) Market Value is a concept which does not usually apply to insurance settlements. Market value means the selling value of the property. The (fair) market value on real property would not be a good indicator of the insurable value for fire insurance. In a down market, a home might sell for less than it cost to be rebuilt.
Salvage Value…. The Salvage Clause is a condition in a property policy that gives the insurance company the right to take title to property after payment of a total loss. Salvage Value is often referred to as the value of damaged property taken over by an insurer to reduce its loss. The insurance company will sell the damaged property. Most insurance companies will offer the insured an option to purchase the salvage back from the insurer for what the insurance company might receive from a salvage yard.

Enroll in our next Property Class

A Sneak Peek inside the Property Insurance Course (Part 1):

PART 1 - PROPERTY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 1 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

Insurance is designed to transfer the financial impact of a loss from an individual or company to an insurance company. In exchange for the protection (agreement of indemnification) of the insurance company, an insured must pay premiums.

Property and Casualty Insurance Contracts are indemnification contracts. Indemnification means to restore a person to his or her original position before the loss, with no gain.
Property Insurance indemnifies a person or business who has an interest in physical property for the loss or the loss of income-producing abilities.
Casualty Insurance, often referred to as Liability Insurance, indemnifies for a wide variety of losses caused by an insured to a third party. Casualty Insurance includes Commercial Liability, Auto, Workers’ Compensation, Crime, Surety (Bonds), etc.
Law of Large Numbers: Risks are usually not considered insurable unless the insurance company has a large enough number of similar risks and a large enough base of previous loss experience to be able to accurately predict future losses. It is the law of large numbers that makes accurate predictions of group losses possible. The larger the number of risks, the more predictable the number of losses becomes.

Enroll in our next Property Class

A Sneak Peek inside the Disability Insurance Course (Part 3):

PART 3 - DISABILITY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 3 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

How might a business benefit from different types of Disability insurance policies?

Buy-Out, a.k.a. Buy-Sell, is an agreement to buy out the interest of a partner or a persons’ interest in a firm, following a disability. A Disability Income policy would fund the buy-out agreement. Disability Buy-Sell coverage can be designed to provide benefits to a corporation to buy out a disabled stockholder’s or director’s share of the business. The policy will generally pay an installment benefit to the corporation for up to a year and then finally pay out a lump sum benefit to the corporation so it can buy out the disabled partner. Premiums are not tax-deductible; however, the benefits are received tax free.
Business Overhead Expense: Disabled individuals not only suffer a loss of income but also may incur a loss because of continuing business expenses. This situation frequently arises among self-employed persons such as doctors, lawyers and insurance producers.

Business Overhead Expense is designed to cover routine overhead (e.g., rent or lease payments, utilities, advertising, etc.) and wages. The purpose is to allow the business to keep its doors open and the business intact until the owner returns or is able to sell the business. Benefits usually are paid for 1 or 2 years. BOE premiums are tax-deductible to the business, and thus the disability benefits received are taxable to the business. However, the taxable benefits are then used to pay tax deductible expenses.

Key Person/Partner insurance protection replaces the income lost when an essential employee, who can also be the owner, is unable to work. The policy pays benefits directly to the business to help fund the hiring and training of a replacement.
The policy is owned by the business
The premium is paid by the business, but is NOT tax deductible
The business is the beneficiary, and receives an income tax free benefit
The person (usually an employee) is the insured
The key person (insured) must qualify for the coverage

Enroll in our next Disability Class

A Sneak Peek inside the Disability Insurance Course (Part 2):

PART 2 - DISABILITY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 2 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

How is a Flexible Spending Account different from a Health Savings Account?

Flexible Spending Accounts (FSAs) allow employees to be reimbursed for medical expenses. FSAs are usually funded through voluntary salary reduction agreements with an employer. No federal income taxes are deducted from the employee’s contribution. The employer may also contribute.

The benefits of the FSA are:

No employment or federal income taxes are deducted from the contribution.
Withdrawals may be tax free if you pay qualified medical expenses.

Self-employed individuals are NOT eligible for a flexible spending arrangement.

Use It or Lose It” Rule: Distributions from the FSA are paid only to reimburse for qualified medical expenses incurred during the period of coverage. This means that amounts in the account at the end of the plan year cannot be carried over to the next year. You must use the money in the calendar year and submit the claims by the annual deadline, or the money remaining in the account goes back to the employer, so, use it or lose it.

The “use it or lose it” rule is why a person should plan carefully, and conservatively, when making contributions into an FSA.

Enroll in our next Disability Class