Whole life B. Your premium may increase if you continue it for another term because you will be older. . 1. 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. Use Which of the following policies would meet her needs? In other words, you will have to show why you want to insure the individual. \quad\text{Unearned revenue}&&\text{900}\\ Cash value. The first is the easy method. C. Her contingent beneficiaries. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. I would definitely recommend Study.com to my colleagues. All other trademarks and copyrights are the property of their respective owners. $50,000 C. $80,000 D. $100,000 E. $180,000 B. 37. Instruction$86,100 C. Policyholder. A. A. Adjustable life B. Megan wants to purchase a life insurance policy that will allow her to invest in stock. Time Value of Money Formula & Examples | What is Time Value of Money? 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. Features of Life Insurance A. B. Multiyear level term. You can take out a life insurance policy on your spouse if you have an insurable interest. Now, if it's just you and your spouse, you can use the DINK method. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. There are many life circumstances you need to consider, but depending on your circumstances, there are different methods you can use to figure out your life insurance coverage requirement. B. D. Household with children. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. E. The policy requires that you pay a specified premium each year for the rest of your life. Sum Assured as chosen by the Working Spouse under the Plan. What are the stages of the General Adaptation Syndrome (GAS)? Most people buy life insurance to A. C. The mortality rate it expects among its policy holders. 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. E. It is permanent life insurance. D. Term life insurance plans. Another name for permanent life insurance is A. Find the factor on the chart where the nonworking spouse's age intersects with the working spouse's income from the column on the left 3. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. 43. After payment was received, tuition $18,000 C. $50,000 D. $130,000 E. $180,000, 84. D. A fixed annuity is one where the investments made into the annuity are variable. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. E. Single year term. Non-Working Spouse Method. C. Convertible term. Can someone be denied homeowners insurance? Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. E. Proceeds left with the company. The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs.10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. A. Adjustable life B. A. E. Proceeds left with the company. This last method is called the family need method. For a non-Working Spouse. TERMS OF SERVICE This is a very common type of policy taken by homeowners who want to support their children financially. 1. Amy has worked with students at all levels from those with special needs to those that are gifted. You and your spouse are in good health and have reasonably secure jobs. Group life C. Limited life D. Universal life E. Variable life, 51. 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. was specifically designed for someone in her situation? Marianne and Roger are in good health and have reasonably secure careers. B. Mortality and expense risk charge. The Tax Reform Act of 1986 A. Which of the following is NOT a type of permanent life insurance? PK ! 96. A. 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. This method is meant for those with typical families where both spouses work, are in good health, with average debt, and with no more than three kids. 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. Term C. Credit life D. Endowment life E. Adjustable life, 53. Which of the following riders would allow her to receive cash now? 5 days. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Endowment Plans Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. Which of the following is NOT important when buying life insurance? Life Insurance A. Riders in Insurance Here's how to calculate the estimated life insurance need: 1. A. 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. D. Spend money. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Ask a Family Member's Financial Advisor. 46. copyright 2003-2023 Study.com. 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. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. B. PERSONAL FINANCE TIPS DELIVERED DIRECTLY IN YOUR INBOX, By submitting your name and email you are allowing us to store your personal data and send you emails. I highly recommend you use this site! An immediate annuity allows an individual to receive payments from an annuity beginning at once. Student services 37,700 You have no plans to increase the size of your family in This is a very common type of policy taken by homeowners who want to support their children financially. Purchasing a life insurance policy is a basic and inexpensive task. 700 cartons to be stored. C. Your premium will not increase because your policy is renewable. B. In most cases in India, the non-working spouse is a woman and it may be unimaginable to account for the financial implications in case of their absence, keep aside the emotional damage. Estimate how much life insurance Tim and Allison should carry to cover Allison. NOT BANK GUARANTEED. A. Look through financial records. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Which of the following policies would meet her needs? 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. Each of you Tax benefits/savings are subject to provisions under section 80 C, 80 CCC, 80 D, 10(10A), 10(10D) and other sections of the Income Tax Act, 1961. The insurer may tell you, or it may ask you to submit a form reporting the death. $12,000 B. Buying from professionally qualified representatives C. Ignoring the reputations of local agencies D. Working with a representative who will help you select the proper kind of protection within your financial boundaries E. Asking family or friends for recommendations to choose an insurance company. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. Anita is a "nonworking" spouse who devotes all of her time to household activities. If their youngest child is 5 years old, how much do they need? Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. What is their total insurance need using the DINK method? Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. 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. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ However, at a minimum, you should consider the financial value of child care, house care, and other domestic services that your spouse has been taking care of at present. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! Of course, it would be a tragedy were something to happen to your spouse. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. What happens if you don't pay your health insurance deductible? Polly wants the opportunity to change the amount she pays for her annual premium through the life of her insurance policy without changing her coverage. is =1.25\sigma = 1.25=1.25. 81. To unlock this lesson you must be a Study.com Member. Protection against loss of life for a specified term. 74. A. to work after your death. B. It will take your youngest child 15 more years to reach 18. Claim Settlement Ratio Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. E. Child. When deciding the right amount of coverage required for your spouse, everyones need may be different. Which of the following is NOT temporary insurance? 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! E. Your premium will be higher than a whole life policy premium. So your life insurance requirement is 15 $10,000 = $150,000. 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. How to estimate life insurance requirements for a non working spouse? The investment risk in investment portfolio is borne by the policyholder. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. 72. B. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ This is also the most thorough method. 3.The maturity benefit calculated for a 25 years old healthy male who has opted for Canara HSBC Life Insurance Guaranteed Savings Plan with Guaranteed Savings Option through insurers website, annual premium Rs. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). to work after your death. C. Your premium will be the same for the duration of your policy. 25,00,000 which will remain same throughout the Policy Term. If you have a conversion term policy, A. Wendy has had a life insurance policy for five years. Estimate how much life insurance Shaan and Anita should carry. What kind of policy is he planning to purchase? 99. 59. . Of the following, which one is the most positive feature of whole life insurance? Whole life. It accumulates cash value. B. Certificates of deposit. This method is used only to calculate child care needs, not the total financial needs of the family. age 35 may expect to live. Most participating policies are sold by: 102. B. Its like a teacher waved a magic wand and did the work for me. E. All of these. All guarantees are based on the continued claims paying ability of the issuing company. A. What is the cost of living in California? 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. Which of the following provisions will affect the amount of money his beneficiaries will receive? Using the DINK method, what should be your need for life insurance? Donald and Charlene are married and do not have any children. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] What is your life insurance need using the DINK method? Estimate how much life insurance Tim and Allison should carry. The recommendation is to have seven to ten years of life insurance. Academic support 23,300 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. e. a place in which to keep products until they are needed Easy method C. DINK method D. Family need E. Soccer mom 95. While it is wise to buy a life insurance policy to protect the income of the earning spouse, covering the non-working spouse may not seem as important. Please check your entries and try again. Using the nonworking spouse method, what should be the life insurance needs for a D. Your policy will have the same premium as other term policies. C. The policy will return all premiums if you survive to the end of the policy. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. 45. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. They plan to purchase life insurance using this formula: Current income 7 70%. You estimate that funeral expenses will be $5,000. C. It is more expensive than term insurance. Under this method, the original principal that you save will still remain at the end of the income period. What kind of policy would she want to purchase? A. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. 82. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. E. Whole life insurance plans. 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. 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. 38. The cash value of the policy is expected to be Jeff Willis has five kids and more debt than the, average family. Fixed Annuities are long-term insurance products. 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. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Allison is a "nonworking" spouse who devotes all of her time to household activities. [Content_Types].xml ( Y0}GM Another name for a straight term policy is A. Renewable term. You policy will continue for one year. is your life insurance need based on the easy method? 25. a. a way of calculating an inventory's value Which of the following products allows an individual to receive payments beginning now? C. Final life payment. Which of the following is the process of getting oxygen from the environment to the tissues of the body? Which statement is correct regarding mutual life. 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? Which method are they using to determine their life insurance needs? Jeanne wants to purchase a life insurance policy with guaranteed premiums. Frank, age 38, was hit by a car and died. Course Hero is not sponsored or endorsed by any college or university. Whole life. Fixed annuity B. Which of the following households most likely has the greatest need for life insurance? Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? D. The beneficiary can borrow any amount up to the total benefit. \textbf{STEINER COLLEGE}\\ If one should die, they think that funeral expenses would be $12,000. 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. Estimate how much life insurance Tim and Allison should carry. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ 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. Answer . 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. Which of the following riders should he consider? B. 12-3 Call the State Commissioner's Office for your State. This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. A. Waiver of premium disability benefit B. B. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ Carton is 0.75 m by 0.6 m by 0.8 m. f. include taxes, storage fees, and handling costs, Purchasing a life insurance policy is a basic and inexpensive task, Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death, 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, Life insurance is a wise purchase of all individuals, The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets, The "Family Need" method of estimating life insurance includes factors such as social security and liquid assets, Decreasing term pays less to the beneficiary as time passes, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy, Competition among companies with comparable policies can affect the price a company charges for life insurance, An interest-adjusted index is a method evaluating the cost of life insurance by taking into accounting the time value of money, The lower the interest-adjusted index, the lower the cost for life insurance policy, If you change your mind about your insurance policy, you have 60 days to return it to receive a refund of your premium, The most common settlement option for a life insurance program is the lump-sum payment, If you switch life insurance policies, you will automatically still be insurable, Annuities are more attractive for people who expect to live only a short time, The earnings from an investments in an annuity is taxed the same as earnings from an investment in the certificate of deposit, An administrative fee of $150 per year may be deducted to cover record-keeping and other administrative expenses related to a variable annuity, When you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically, If you have misplaced a life insurance policy, your state's insurance commission may be able to help you locate it, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. If you have a renewable term policy, A. Sum Assured fixed at Rs. E. Credit life. What is the most important part of an insurance agents job? Or, you can call us at (800) 797-1000. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. The sooner a person is likely to die, the lower the premiums he or she will pay. Net deposits returned to students totaled $10. Diffusion Let us complete them for you. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). E. None of these is correct. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. old? the easy method to determine how much life insurance you should carry. \textbf{Statement of Financial Position}\\ Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 48. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. A. Adjustable life B. For example, say. Life expectancy for men is longer than that for women. 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. 26. B. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? In contrast to the biopsychosocial model, the biomedical model views health as ___________. You are a dual-income, no-kids family. She has since died. The return on its investments. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. \text{Prepaid assets}&&\text{1,364}\\ D. Her parents. T&C Apply. This term life policy will guarantee that you will pay the same premium for the duration of your policy.
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