CFP Module 3 study guide
CFP Module 3 · Work through your exam, one topic at a time.
CFP Module 3 is the risk management, insurance, and employee benefits component of the CFP certification curriculum. It is aimed at candidates building a financial planning career who need to advise clients on protecting income, assets, and health rather than only accumulating them. The CFP Module 3 study guide has 10 sections and about 2,852 words.
01Principles of Risk Management and Insurance
Principles of Risk Management and Insurance tests whether you can identify a pure exposure, measure it, and justify a treatment. Expect insurable-interest timing, indemnity, subrogation, and the characteristics that make a risk insurable.
292 words, about 1 min02Life Insurance
Life Insurance tests policy structures, underwriting, beneficiary designations, cash-value mechanics, taxation, and needs analysis. Expect term versus permanent comparisons, maturity and death-benefit treatment, and policy-owner control.
278 words, about 1 min03Health Insurance and Health Care Financing
Health Insurance and Health Care Financing tests cost-sharing mechanics, managed-care networks, ACA market rules, HSA eligibility, and coordination of benefits. Expect calculations involving deductibles, coinsurance, and out-of-pocket maximums.
298 words, about 1 min04Long-Term Care Insurance
Long-Term Care Insurance tests benefit triggers, policy design, inflation protection, tax treatment, and the boundary between Medicare and Medicaid. Expect claim scenarios involving ADLs and cognitive impairment.
292 words, about 1 min05Disability Income Insurance
Disability Income Insurance tests the definition of disability, benefit design, taxation, and business disability coverages. Expect own-occupation versus any-occupation and residual-benefit calculations.
274 words, about 1 min06Property and Casualty Insurance
Property and Casualty Insurance tests homeowners and auto coverage, property valuation, coinsurance, deductibles, and common exclusions. Expect a coinsurance-penalty calculation.
280 words, about 1 min07Liability and Umbrella Insurance
Liability and Umbrella Insurance tests negligence, liability coverage triggers, umbrella excess mechanics, and gaps between personal and commercial policies. Expect at-fault loss allocation.
273 words, about 1 min08Employee Benefits and Group Insurance
Employee Benefits and Group Insurance tests group underwriting, ERISA, COBRA, cafeteria plans, and the tax treatment of employer-provided coverage. Expect group term life imputed-income math.
271 words, about 1 min09Government Benefit Programs (Social Security, Medicare, Medicaid)
Government Benefit Programs tests Social Security eligibility and benefit timing, Medicare parts and enrollment, Medicaid long-term-care rules, and taxation of benefits. Social Security full retirement age depends on birth year.
309 words, about 2 min10Business Insurance and Risk Management
Business Insurance and Risk Management tests commercial property and liability coverage, business income, key-person and buy-sell planning, and workers compensation. Expect a business-income coinsurance calculation.
285 words, about 1 min