D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Institutional support 28,500. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ C. Ordinary life. D. Term. A. Adjustable life B. False. The most common settlement option for a life insurance program is the lump-sum payment. Likewise, when using the rule of 72, the number 72 is used in the calculation. 36. E. It is permanent life insurance. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. Factors That Affect Life Insurance Premiums Term insurance C. Whole life insurance D. Variable annuity E. 401(k). The ending balance in Accounts Payable and Accrued Liabilities was$1,935. Fred bought life insurance five years ago. 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. But from a financial perspective, it does not have to be a crisisif you have good planning. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? Your surviving family's ongoing needs are $800,000 for your spouse's needs, and your dependent children's needs are $400,000 for a limited period of time. Using the nonworking spouse method, what should be the life Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. $30,000 B. is =1.25\sigma = 1.25=1.25. Group life B. The sooner a person is likely to die, the lower the premiums he or she will pay. Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using $343,000 C. $490,000 D. $700,000 E. $750,000, 86. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. So with funeral expenses of $10,000, your life insurance requirement is: This next method is for those with just one wage earner in the family. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. An individual can take out a loan on his or her term policy. Contract. D. Life income option. B. 75. B. Net deposits returned to students totaled $10. If you mean you want to add life insurance coverage for your new spouse on your life insurance policy, you can contact your life insurance agent or carrier and request what it would cost to add a spouse rider for life insurance coverage to your existing policy. E. None of these is correct. Goods & Services Tax will be charged on the premium amount. The process standard deviaton Limited installment payment. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. 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. A. The maturity benefit in form of a lumpsum benefit equal to Rs.33,19,055 is paid at the end of the 20th year, provided the policy is in-force and all due premiums have been paid. $86,000 C. $98,000 D. $172,000 E. $217,000. Exam 3 Flashcards by Sam Cohen | Brainscape You may need to change your coverage amounts when this happens. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. A. Waiver of premium disability benefit B. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Another name for permanent life insurance is A. 700 cartons to be stored. T&C apply. C. Identified annuities to be the same as certificates of deposit. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. This gives you seven years of wages at 70%. The family needs approach requires you to purchase enough life insurance to allow your family to meet its various expenses in the event of your death. \text{Short-term investments}&&\text{7,666}\\ They have determined that their annual income is $70,000 and their net worth is now $150,000. Steiner is a private college. Fell free get in touch with us via phone or send us a message. Life insurance companies issue a lot of paperwork. C. Decreasing term. Group life C. Limited life D. Universal life E. Variable life, 52. Please check your entries and try again. B. nonworking spouse whose youngest child is 5 years old? Which of the following is a poor choice for the amount of protection offered for an individual? Pay off a mortgage. Your spouse expects to continue to work after your death. Competition among companies with comparable policies can affect the price a company charges for life insurance. Watch on to see what they are. This method is called the non-working spouse method. All of the following are major rating agencies for insurance except A. E. Pay taxes. Explanation: Generally when there is only one working spouse in a household and you want to get insurance to cover child care needs, you can use the non-working spouse method which is very simple to calculate but will also carry a very low amount. This is a method that has you adding half of all your debts plus funeral expenses. Fixed annuity B. 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. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. Home Flashcards Chapter 10 Personal Finance. The Tax Reform Act of 1986 A. B. A. Adjustable life B. Further, you estimate that your funeral will cost $6,000. The return on its investments. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. When calculating an amount, ask yourself what it will cost to hire someone to replace your spouse and perform all the tasks your non-working spouse does throughout the day. Were your family to lose that, you lose all of that labor. E. Convince you to buy the policy that will pay her the highest commission. Insurance needed. It's 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. Call the State Commissioner's Office for your State. Allison is a "nonworking" spouse who devotes all of her time to household activities. Which of the following is NOT a feature of whole life insurance? A. Now, if it's just you and your spouse, you can use the DINK method. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. Amy has a master's degree in secondary education and has been teaching math for over 9 years. insurance needs for a family whose youngest child is 5 years Question: Problem 12-10 Using the "Nonworking" Spouse Method to Determine Life Insurance Needs [LO12-2] Tim and Allison are married and have two children, ages 16 and 17 . You can convert your policy to a permanent type at the end of the term. DESIGNED BY: INTERSOFT ASSOCIATES. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. You have a gross annual income of $62,000. There's no one-size-fits-all answer to this because every family is different, but a 15- to 20-year policy between $250,000400,000 is a general rule. Preserved the tax advantage of annuities but curtailed deductions for IRAs. Limited installment payment. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. C. Convertible term. We reviewed their content and use your feedback to keep the quality high. . A. B. So to recap, you can not take out a life insurance policy on someone without their knowledge, and no one should be able to do it to you. 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? Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited. B. Mortality and expense risk charge. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. This next method is for those with just one wage earner in the family. 60. 25. C. You can convert your term policy to a permanent policy. Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. Estimate how much life insurance Tim and Allison should carry. \end{array} Can you get life insurance on a spouse? Ask to set up a Wealth Curve conversation. 80. 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. 97. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. False. B. 68. In case of death of the Life Assured during the Policy Term, Sum Assured on Death basis the Coverage option opted, less cumulative monthly income(s) already paid shall be payable. Time Value of Money Formula & Examples | What is Time Value of Money? C. Her contingent beneficiaries. Not necessarily. Georgia was supposed to pay her premium by the 15th of the month. She may need to change her coverage as her needs change. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. Something went wrong. A. C. A life insurance policy allows an individual to receive payments from an annuity at once. 25,00,000 which will remain same throughout the Policy Term. 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. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. Ask a Family Member's Financial Advisor. E. Single year term. 3 days. What happens if you don't pay your health insurance deductible? E. Proceeds left with the company. E. All of these. The timing for payments of a variable annuity are variable. All other trademarks and copyrights are the property of their respective owners. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. What kind of policy would you want to purchase? succeed. 38. 93. Sell you the highest level of coverage available. 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. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? Find the symmetric intervals around the mean of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL that respectively include the cholesterol levels of 68.3%,95.4%68.3 \%, 95.4 \%68.3%,95.4%, and 99.7%99.7 \%99.7% of all children. 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. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. \textbf{Liabilities and Net Assets}\\ A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. About ___ of the U.S. life insurance companies are stock companies. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Focus on Personal Finance: Online Textbook Help, Life Insurance Companies: Definition & Types, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, How to Estimate Life Insurance Requirements. 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. The first is the easy method. Its free, with no obligation. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. D. Household with children. Most people buy life insurance to A. Using the DINK method, what should be your need for life insurance? 1. It also collected $820 of Pledges Receivable that were unrestricted. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. 200 lessons. D. Help you select the proper kind of protection within your financial boundaries. Which of the following provisions will affect the amount of money his beneficiaries will receive? Each earns $45,000 annually. One of our associate will call you back shortly. False. copyright 2003-2023 Study.com. The non-working spouse method is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Which method are they using to determine their life insurance needs? insurance needs for a family whose youngest child is 5 years Such advance premium, if any, paid by the Policyholder shall not carry any interest. Your rates will vary based on your unique circumstances, just as they would if you were single. 2. The last thing to realize is that calculating your life insurance needs can be tricky. Jeanne wants to purchase a life insurance policy with guaranteed premiums. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. old? It will take your youngest child 15 more years to reach 18. Whether you're married, domestic partners or simply sharing a life with someone you love, taking out a pair of affordable term life insurance policies can provide both financial security and peace of mind. 25% C. 50% D. 75% E. 95%, 32. b. the number of each item you have in stock Which of the following is NOT temporary insurance? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). Ag;sE2/yNNF;eF]!hiV^r^l PK ! refunds of$11,200 were given. 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. $40,000 B. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Try refreshing the page, or contact customer support. D. 30 days. Estimate how much life insurance Tim and Allison should carry to cover Allison. A. \text{Prepaid assets}&&\text{1,364}\\ For a non-Working Spouse. - Definition & Types, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Unique Selling Proposition (USP): Examples & Definition, What Is Product Placement? Your spouse expects to continue C. Individual retirement accounts (IRAs). Under this method, the original principal that you save will still remain at the end of the income period. It equals the cost of replacing the property. E. No interest will accumulate for any loans related to 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. A. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} 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. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. The recommendation is to have seven to ten years of life insurance. 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. 78. Straight life C. Ordinary life D. Term life E. Cash value life. 99. The cash value of the policy is expected to be What kind of policy is he planning to purchase? E. Made all annuities tax free. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Sum Assured fixed at Rs. 101. Can you buy life insurance for someone who is dying? 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. Use the multiple of income method to Solved Using the "nonworking" spouse method, what should be - Chegg What is the amount of life insurance they should carry using the "nonworking" spouse method? \textbf{June 30, 2019}\\ Your annual income is $100,000. Using the nonworking spouse method, what should be the life A. Past performance of the investment funds do not indicate the future performance of the same. Allowed whole life insurance policies to be sold. Shaan and anita are married and have two children, ages 9 and - Brainly Which of the following life insurance policies should she apply for? Amy bought a life insurance policy and named Ben as her beneficiary. Investors in the Scheme are not being offered any guaranteed / assured returns. They plan to purchase life insurance using this formula: Current income 7 70%. Can non-working spouses qualify for a life insurance? The cholesterol level in children follows a normal distribution with a mean level of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL and a standard deviation of 35mg/dL35 \mathrm{mg} / \mathrm{dL}35mg/dL. You can take out a life insurance policy on your spouse if you have an insurable interest. The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. Jumping the Wealth Curve with Edward E. Bao Jr. Using time value of money and assuming you could invest your D. Allowed annuities to be purchased for individual retirement accounts. Use Benefits of Life Insurance Also, if you try to make up some of that yourself, you lose income and income potential. Term C. Credit life D. Endowment life E. Adjustable life, 53. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Each plans to continue to work after the other one dies. Life Insurance for Spouse (Non-Working): All You Need To Know E. Child. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. \textbf{Assets}\\ Catherine Carey has made the choice to stay home and raise her three kids while her husband works. What impact do they have on your wealth potential. Using the DINK method, what should be your need for life insurance? How long is the grace period for health insurance policies with monthly due premiums? C. Your premium will not increase because your policy is renewable. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Your annual premium is $1,000. Which of the following statements is incorrect? You have no plans to increase the size of your family in If we really see it through the lens, probably the Non-working Spouse, as the life insurance industry calls it, has more of the work to do without getting paid as much as its office-going counterpart. 5 days. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. A. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ B. E. The policy requires that you pay a specified premium each year for the rest of your life. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. B. Bens beneficiaries. B. Let us have a look at your work and suggest how to improve it! A. Adjustable life B. 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. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. method, what should be your need for life insurance? Which of the following policies should she buy? Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. I feel like its a lifeline. Using Exhibit 12-1, determine the average numbers of additional years males alive at A. Waiver of premium disability benefit B. D. It builds cash value. . C. Tell you why her product is better than the competitors. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. Group life C. Limited life D. Universal life E. Variable life, 50. was specifically designed for someone in her situation? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. 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. The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called A. Lump-sum payment. Endowment Plans a. a way of calculating an inventory's value 70. \text{Net assets:}\\ '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Answered: Shaan and Anita are married and have | bartleby Group life C. Limited life D. Universal life E. Variable life, 49. This is a very common type of policy taken by homeowners who want to support their children financially. Insurance Need: ? What will be the surrender value of LIC policy after 5 years? $140,000 B. Collections on Tuition and Fees Receivable totaled$222,600. NOT BANK GUARANTEED. Estimate your total Cross), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Psychology (David G. Myers; C. Nathan DeWall), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Give Me Liberty! A. Get unlimited access to over 88,000 lessons. All guarantees are based on the continued claims paying ability of the issuing company. Multiply the income . How much storage space is required? d. a way of shipping goods to customers C. 10 days. B. 26. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Answer . Is equipment floater the same as inland marine? E. Proceeds left with the company. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = Who will receive the benefits from her policy? Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. Use Exhibit 1-B. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. 58. Please consult your independent tax advisor for details. Of the following, which one is the most positive feature of whole life insurance? Fixed Annuities are long-term insurance products. An error occurred trying to load this video. You can convert your policy from permanent to term at any time. After you purchase a life insurance contract, you have a "free look" period that lasts A. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. I would definitely recommend Study.com to my colleagues. A person who is named to receive the benefits from an insurance policy is a(n) A. The death benefit will be increased by the amount of an outstanding policy loan. The insurer may tell you, or it may ask you to submit a form reporting the death. Need for a Life Insurance for the Non-Working Spouse - Canara HSBC Life A. Ben. Which of the following is the process of getting oxygen from the environment to the tissues of the body? We are living in times of uncertainty. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. 35. Estimate how much life insurance Tim and Allison should carry. If you have a renewable term policy, A. The DINK method has you adding half of all your debts to your funeral expenses. Jeff and Erica have two children. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. Which of the following is a charge you will pay when you purchase a variable annuity? Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. You have no other debt. 81. E. Your premium will be higher than a whole life policy premium. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. Term insurance B. You must pay interest on any loans. A. 45. Easy method C. DINK method D. Family need E. Soccer mom 95. D. Insurer. The income replacement approach is a method of determining the amount of life insurance you should purchase. Which statement is correct regarding mutual life. Carton is 0.75 m by 0.6 m by 0.8 m. A. Life insurance is a wise purchase of all individuals. Your spouse expects to continue to work after your death. Which of the following is NOT a type of permanent life insurance?
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