Of course, it would be a tragedy were something to happen to your spouse. Further, you estimate that your funeral will cost $6,000. B. Life expectancy for men is longer than that for women. nonworking spouse whose youngest child is 6 years old? A. . If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. Your spouse expects to continue to work after your death. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. For example, if your gross income is $65,000, then with the easy method, your life insurance requirement is ($65,000 * 0.7) * 7 = $318,500. 46. Amy bought a life insurance policy and named Ben as her beneficiary. 44. Something went wrong. 5% B. 48. E. Proceeds left with the company. a. a way of calculating an inventory's value C. Ordinary life. A. Adjustable life B. This website helped me pass! Goods & Services Tax will be charged on the premium amount. C. Final life payment. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. D. Insurer. When deciding the right amount of coverage required for your spouse, everyones need may be different. Which of the following is a charge you will pay when you purchase a variable annuity? C. A life insurance policy allows the beneficiary to receive proceeds at some future date. Then compute this number as an annual cost and multiply by the approximate number of years you would need those services, say until your children start going to college, or until you retire to take care of the house yourself. Limited installment payment. . Use A. 700 cartons to be stored. With the right term insurance policy in place, stay prepared for any adversity. What kind of policy would she want to purchase? Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o Multiply the income . ^Individual death claims settled and reported in public disclosures for FY 2021-22. $4,000. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. They have determined that their annual income is $70,000 and their net worth is now $150,000. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. Sell you the highest level of coverage available. For a non-Working Spouse. The premium paid in Unit linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. This last method is called the family need method. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Purchasing a life insurance policy is a basic and inexpensive task. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. The premium so collected in advance shall only be adjusted on the due date of the premium. E. An insurance company will calculate the annual amounts to pay each person for an annuity. We want to help you with that. Expert Answer 100% (1 rating) Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s View the full answer Previous question Next question Has the option to select any Coverage Option, any Optional In-Built Cover and any Benefit Payout Option at the stage of getting added for coverage under the policy. Your spouse expects to continue to work after your death. We are living in times of uncertainty. Features of Life Insurance Institutional support 28,500. Estimate how much life insurance Tim and Allison should carry. Steiner is a private college. E. 60 days. Most people buy life insurance to A. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. It will take your youngest child 15 more years to reach 18. In this case, 18 years. Having life insurance for income replacement means if you pass away, your family could have the financial support they need to maintain the lifestyle they're used to. Benefits of Life Insurance E. None of these. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. How long is the grace period for health insurance policies with monthly due premiums? Buying from a financially strong company B. Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? Protection against loss of life for a specified term. 41. nonworking spouse whose youngest child is 5 years old? \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ You have a gross annual income of $62,000. Allowed whole life insurance policies to be sold. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. B. C. Your premium will not increase because your policy is renewable. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. You can convert your policy from permanent to term at any time. Which of the following products allows an individual to receive payments beginning now? The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI \text{Net assets:}\\ 65. Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Which of the following life insurance policies should she apply for? 80. AssetsCashandcashequivalentsShort-terminvestmentsTuitionandfeesreceivable(netofdoubtfulaccountsof$12)Pledgesreceivable(netofdoubtfulaccountsof$280)PrepaidassetsProperty,plan,andequipment(netofaccumulateddepreciationof$104,240)Investments(atfairvalue,costof$162,000)TotalassetsLiabilitiesandNetAssetsLiabilities:AccountspayableandaccruedliabilitiesDepositsheldincustodyforothersUnearnedrevenueBondspayableTotalliabilitiesNetassets:WithoutdonorrestrictionsWithdonorrestrictionsTotalnetassetsTotalliabilitiesandnetassets$104,000229,940$7347,6662305,8721,364281,404158,400$455,670$21,13070090099,000127,730333,940$455,670. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. A. 79. E. None of these is correct. A. Shaan and Anita are married and have two children, ages 4 and 7. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Maximum amount that can be claimed as deduction for education loan, How to File ITR for Income under 2.5 Lakh, How to Reduce Tax Liability with Term Insurance, Know the Tax Benefit on Saving for Retirement, Need for a Life Insurance for the Non-Working Spouse, Making claim settlement easy for your beneficiaries, How has the occurrence of covid-19 affected insurance in INDIA, Factors That Affect Life Insurance Premiums, Reasons for Life Insurance Claim Rejection, Unclaimed Amount Movement To-senior Citizens Welfare Fund. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. What happens if you don't pay your health insurance deductible? Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. What is the amount of life insurance they should carry using the "nonworking" spouse method? B. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. the income provider's salary. Collections on Tuition and Fees Receivable totaled$222,600. 25,00,000 which will remain same throughout the Policy Term. Answer: 111, Using the "nonworking" spouse method, what should be the life insurance needs for a nonworking spouse whose youngest child is 5 years old? Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. After you purchase a life insurance contract, you have a "free look" period that lasts A. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. Which of the following riders should he consider? The capital retention method is a method of determining the amount of life insurance needed by using an interest-only model to support your family. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. E. All of these affect the price. Easy method C. DINK method D. Family need E. Soccer mom 95. You have to drive them to and from school, oversee homework and music practice. Quickly and professionally. B. Limited installment payment. 200 lessons. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ I highly recommend you use this site! lessons in math, English, science, history, and more. Which of the following policies would meet her needs? You must pay interest on any loans. \text{Liabilities:}\\ A. T&C apply. Which method are they using to determine their life insurance needs? The premium shall be adjusted on the due date even if it has been received in advance. 47. A. Adjustable life B. \textbf{STEINER COLLEGE}\\ A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. As a member, you'll also get unlimited access to over 88,000 B. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Here's how to calculate the estimated life insurance need: 1. 401(k) plans. If you are looking for life insurance, you probably realize the need to secure your family financially, but if you are married, your safety net is probably incomplete unless your spouse also has an adequate life insurance coverage to take care of your familys overall financial needs. age 35 may expect to live. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. Using Exhibit 12-1, determine the average numbers of additional years males alive at A.M. Best. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. If you have a renewable term policy, A. Whole life. And a term insurance cover for house makers, non-working spouses, or say a housewife, proves helpful exactly here, ensuring your family tides over the financial damages in case something unfortunate happens. You may not purchase insurance once your term ends. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. She may need to change her coverage as her needs change. Which of the following households most likely has the greatest need for life insurance? Under this approach, the insurance purchased is based on the value of the income the insured breadwinner can expect to earn during his or her lifetime. Under this method, the original principal that you save will still remain at the end of the income period. is =1.25\sigma = 1.25=1.25. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. D. Her parents. Group life C. Limited life D. Universal life E. Variable life, 50. \text{Short-term investments}&&\text{7,666}\\ A. The policy terminates only after the sum assured on death or diagnosis of Terminal Illness of the second life, or on maturity of the policy term, thereafter. E. Made all annuities tax free. Single adult living alone. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. False. Fell free get in touch with us via phone or send us a message. What is your life insurance need using the DINK method? d. 28. Contract. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. E. Proceeds left with the company. $86,000 C. $98,000 D. $172,000 E. $217,000. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. The investment risk in investment portfolio is borne by the policyholder. Amy has a master's degree in secondary education and has been teaching math for over 9 years. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. B. Premium payments are fixed with a Variable Life Policy, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy. TERMS OF SERVICE The college received cash contributions without donor restrictions of$2,080, pledges to be collected in 2021 of $550, and cash contributions to the endowments of$335. When you're ready to purchase life insurance, you'll need to decide what coverage amount you need so that all your financial obligations and needs are met upon your death. 40. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. The sooner a person is likely to die, the lower the premiums he or she will pay, Life expectancy for men is longer than that for women. The policy loan provision means that A. Collect premiums for the insurance contract. Which method are they using to determine their life insurance needs? 26. Which of the following allows an individual to receive a fixed amount of income over a certain period of time, or over his or her life? Call the State Commissioner's Office for your State. A. Waiver of premium disability benefit B. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. You are the wage earner in a typical family, with $55,000 gross annual income. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. D. It builds cash value. Estimate how much life insurance Tim and Allison should carry to cover Allison. A. Another name for permanent life insurance is A. A. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Term C. Credit life D. Endowment life E. Adjustable life, 53. A. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. 1. D. Your policy will have the same premium as other term policies. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. Wendy has had a life insurance policy for five years. In many cases, the answer is yes. D. A fixed annuity is one where the investments made into the annuity are variable. B. B. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. If you are a family and either you or your spouse stays home with the children, it is most likely that only the working souse has life insurance coverage because thats the case with most families in our country. to work after your death. A. Adjustable life B. insurance needs using the DINK method. A. Waiver of premium disability benefit B. c. the charge per 100 pounds to ship goods by truck Work with our consultant to learn what to alter. Yes! \textbf{(amounts in thousands)}\\ Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. A. Ben. When it comes to purchasing life insurance, you need to make sure you are purchasing enough coverage to cover all your financial needs upon your death. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. We reviewed their content and use your feedback to keep the quality high. How much term does a non-working spouse get? Which of the following riders should he consider? This communication strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. She, wants to determine her insurance needs. Ag;sE2/yNNF;eF]!hiV^r^l PK ! Sum Assured fixed at Rs. Net deposits returned to students totaled $10. Answer . ECON 150 Chapter 12 Sample Questions-1.rtf, What is a government Can you think of a reason why we need a government We need, Adjusted Net IncomeLoss and Adjusted Diluted EPS from Continuing Operations The, Analytical approach with clearly and highly articulated recommendatio ns, Which of the following would be the most appropriate advice to give her A Take 2, 6 DML price variance 0 DML efficiency variance 18000U 7 DML flexible budget, Dim statements into comments by adding an apostrophe at the beginning of the, INT 220 Module Two Assignment Template (1).docx, A glucose B fructose C galactose D sucrose E lactose 81 The following are, Vancouver BC Canada Food 1 50K 70K San Andres DF Mexico Food 0 10K 30K Portland, youth_athlete_sports_performance_nutrition_questionnaire_v2.doc, for the compromise or arrangement According to this section 1 In the given case, Formative Assessments_ A Tool for Teacher and Student Development.pdf, B Topic Concept 181 Skill ApplicationAnalysis A geneticist introduces a. For example, say you have a remaining mortgage of $30,000, a credit card balance of $11,000, and a personal loan of $5,000. Home Flashcards Chapter 10 Personal Finance. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. False. $140,000 B. Investors in the Scheme are not being offered any guaranteed / assured returns. What is their total insurance need using the DINK method? $343,000 C. $490,000 D. $700,000 E. $750,000, 85. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. B. 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. 2. NOT BANK GUARANTEED. Estimate how much life insurance Tim and Allison should carry. D. Spend money. Your annual premium is $1,000. Your spouse expects to continue Life Insurance Underwriting A. In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. C. Individual retirement accounts (IRAs). She has since died. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ 2003-2023 Chegg Inc. All rights reserved. Types of Life Insurance Claim Settlement Ratio Each earns $45,000 annually. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Estimate how much life insurance Shaan and Anita should carry. Pay off a mortgage. D. You must pay interest on any outstanding policy loans. Which method are they using to determine their life insurance needs? Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. refunds of$11,200 were given. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Academic support 23,300 Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. And, lastly, the family need method is a method that has you calculating your immediate needs upon death, adding it to the ongoing needs of surviving family members, and then subtracting your available assets from it. For example, if your gross income is $65,000, then with the easy method, your life insurance requirement is ($65,000 0.7) 7 = $318,500. Jumping the Wealth Curve with Edward E. Bao Jr. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. She does not want to take a medical exam to get coverage because she has some underlying health conditions and is concerned that she might not qualify for a policy. The insurance industry rule of thumb that a typical, family will need 70% of salary for seven years in order to, adjust for the financial consequences of a wage-earner's, death is known as which of the following estimation. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. $13,000 B. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? You want to purchase a life insurance policy that pays a dividend. A. A. makes about $38,000 annually. D. 30 days. C. Administrative fee. A. was specifically designed for someone in her situation? Certificates of deposit. If you switch life insurance policies, you will automatically still be insurable, Annuities are most beneficial for individuals who expect to live only a short time, An investment in an annuity is the same as an investment in a certificate of deposit, Tuitionandfeesreceivable(netofdoubtfulaccountsof$12), Pledgesreceivable(netofdoubtfulaccountsof$280), Property,plan,andequipment(netofaccumulateddepreciationof$104,240), Investments(atfairvalue,costof$162,000), Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. If marriage has taken place after the policy commencement date, you can add the Spouse to your policy within one year from the date of the marriage. What is the amount of life insurance they should carry using the easy method? Protect the people who depend on the insured from financial losses caused by his or her death. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. Variety of Fund Options and Portfolio Management Strategies, Loyalty Additions + Wealth Boosters + Return of Mortality Charges, Optional In-built covers to enhance coverage, Policy Term of 1 year or less than 1 year. D. Standard & Poors. B. Which of the following allows an individual to receive an amount of income that will change based on the income received from stocks or other investments over a certain period of time, or over his or her life? Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. What impact do they have on your wealth potential. We look forward to speaking with you. She was recently divorced. A. The process standard deviaton A. B. C. The policy owner can borrow any amount up to the cash value of the policy. 76. What is the most important part of an insurance agents job? GST On Life Insurance Molly is thinking about buying a life insurance policy, but she is not sure about how much she will need in the next few years.
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