Licentiate in Personal Financial Planning

Course details

Course Content

• Unit 1: The need for Financial Security and Insurance
• Unit 2: Legal Principles
• Unit 3: Developing a Personal Financial Plan
• Unit 4: Long Term Insurance Products
• Unit 5: Insurance Market and Practice
• Unit 6: Regulation and Consumer Protection

Target Audience

New entrants to the Industry, Appointed Representatives, Sales persons and all persons giving adivce on long term insurance products

Learning Objectives

At the end of this course Participants will be able to:

1. Unit 1: The Need for Financial Security and Insurance
   • Be aware of the hierarchy of needs of prsons in society and how this evolves through the different stages of the lifetime of a client
   • Define the risks of loss that can result in financial difficulties and how these can vary with circumstances such as fage, family status and employment
   • Explain the common goals of financial planning:
   • • Protection against Premature Death
     • Protection from poor health and disability
     • Protection from unemployment
     • Education for children
     • Higher Standard of Living
     • Managing Debt
     • Increase Perosnal Wealth
     • Retirement
     • Inheritance Tax Planning
   • Expalin the relationship of risk and insurance and which risks can be insured
   • Define Long term insurance and explain its objectives in respect of protection, savings and interest
   • Distinguish between Assurance and Insurance
   • Explain the economic basics of long term insurance; pooling, mortality, uncertainty, spread of risk, risk sharing, investment
   • Ouittne the typical inflows and outflows from a long term insurance pool
   • Ouittne the benefits of long term insurance to society in general
2. Unit 2: Legal Principles
   • Be aware o/eiements of a vafcd contract in relation to long term insurance contracts
   • Explain contract fulfillment, vc*d and voidable contracts and canceiation of contracts of insurance.
   • Be aware of the principles of the law of agency and its application to insurance
   • Define Insurable Interest and explain, with examples relating to long term insurance, how insurable interest may arise
   • Define Utmost Good faith
   • Define Material Facts and explain material facts in relation to moral and physical hazard, giving examples
   • Distinguish between facts which need to be disclosed and those which do not.
   • Distinguish between non-disclosure and misrepresentation and the effect on the contract of insurance when a breach by either party occurs
   • Explain proximate cause and its appfccation in different situations
   • Explain tine principle of indemnity and how it is applied in Long term Insurance
3. Unit 3 - Developing a Personal Financial Plan
   • Explain the relationship between a client and a financial planning advisor
   • Be aware ofthe duty of disclosure of the advisor to the client regarding his business status, their relationship, responsibility for suitability of advice and product information, disclosure of commission
   • Explain the five steps in financial planning:
     • Gathering important financial information
     • Analysing the present financial situation
     • Determine financial goals and objectives
     • Designing a financial plan for attaining these goals
     • Periodically reviewing and revising the plan
   • Explain the advantages of financial planning
   • Be aware o/obstades to financial planning
   • Explain the proposition of buying protection against risks resulting in personal finandal loss and how to arrive at the amount of protection required
   • Outline the basics of investing to attain finandal goals.
     • Investment Objectives
     • Investment risks
     • Types of Investments
   • Be aware ofhow inflation and common economic mcfccatcrs affect savings and investments
4. Unit 4 - Long Term Insurance Products
   • Explain and distinguish between the following baac products in Life Insurance
     • Mortgage Protection
     • Term Assurance
     • Whole of life
     • Endowment
     • Universal Life
   • Explain’Mlith Profits' poboes and how they work
   • Be aware of the folowing riders to provide additional protection that be applied to Life Assurance
     • Wavier of Premium
     • Critical Illness
     • Accidental Death Benefit
     • Permanent Total Disablity
     • Guarnteed Insurability
   • Explasn Permanent Health Insurance and the protection afforded in case of long term Aness or disability
   • Explain Long term care insurance and its purpose.
   • Distinguish between Personal Acodent and Permanent Health Insurance
   • Explain Annuities and be aware o/their basic forms: Immediate or deferred; temporary or life; guaranteed and capital protected; level or escalating
   • Explain "Unrt Linked' policies and how they work
   • Explain the purpose of collective investment funds
   • Out/methe nature and structure of a coiectrve investment fund and the parties involved: Fund manager; Fund Administrator; Trustees; Unit holders; Marketing and Distnbution company
   • Be aware ofthe meaning of terminology used in Coiectrve Investment Funds: Closed-end or Open End; Net Asset value; Gearing and Leverage; Switching; Public and private schemes; Limited Duration; Unit or Share class
   • Be aware of the investment types, investment strategies and investment mix employed by fund managers
   • Be aware of the charging, commission and fees structure of a collective investment fund
   • Be aware of the functions and features of pension schemes and products
   • Distinguish between occupational pensions, personal pensions, inpidual group and state pensions
   • Explain the circumstances, with examples, where each of the products mentioned above are suitable and how they fit in the diem's Finandal plan.
5. Unit 5 - Insurance Market and Practice
   • Outline the structure of the international long term insurance market and that in Bahrain
   • Distinguish between different types of long term insurance providers
   • Distinguish between the various types of insurance intermediaries and channels of ckstribution of long term insurance products and explain the main features in the context of the CBS Rule Book and market practice.
   • Explain the principles of "Best Practice” of selling long term insurance
   • Listthe common documentation related to long term insurance: proposal form, policy form, financial questionnaire,
   • Explain the consequences of withdrawing a proposal, cancellation, surrender, non-payment of premium, and switching of funds.
6. Unit 6 -Regulation and Consumer Protection
   • Be aware of the global role of the International Association of insurance Supervisors
   • List the functions of the Central bank of Bahrain (CB8) as the insurance supervisory authority for insurance in Bahrain under the Central bank of Bahrain and Financial Institutions law 2006.
   • Out/me the structure of Volume 3 - Insurance of the CB8 Rule Book
   • Be aware of the types of Authorization that apply to long term insurance activities in Bahrain
   • Outline the fundamental obligations of insurance bcensees and approved persons under the Prindpies of Business module of the CBB Rule Book
   • Be aware of the concepts applied as a means of controlling capital adequacy of insurance companies transacting long term insurance
   • Be aware ofthe obligations of insurance market practitioners for the prevention of insurance fraud and money laundering and be aware of common skjns of transactions that may involve financial crime.
   • Outline the principles of data protection and privacy laws.
   • Explain the GII Code of Conduct for its members
   • Outline the powers of enforcement and redress available to the CBB.
   • Be aware ^procedures and practice for the handling of complaints from insurance customers.