Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. Your rates will vary based on your unique circumstances, just as they would if you were single. 25. Use the multiple of income method to A.M. Best. It also collected $820 of Pledges Receivable that were unrestricted. C. Your premium will be the same for the duration of your policy. Your annual premium is $1,000. E. The policy requires that you pay a specified premium each year for the rest of your life. Purchasing a life insurance policy is a basic and inexpensive task. Fell free get in touch with us via phone or send us a message. C. Her contingent beneficiaries. nonworking spouse whose youngest child is 5 years old? This method has you multiplying your annual gross income by 70% and then multiplying that by 7. What is Life Insurance? Fixed annuity B. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). If you have a multiyear level term policy, A. 74. $30,000 B. Allowed whole life insurance policies to be sold. The human-life approach is a method of calculating how much life insurance is needed for a family that is based upon their financial loss when the insured person in the family passes away. Institutional support 28,500. The income replacement approach is a method of determining the amount of life insurance you should purchase. copyright 2003-2023 Study.com. What is the most important part of an insurance agents job? E. Child. This method is called the non-working spouse method. 79. 65. Whole life. Your premium may increase if you continue it for another term because you will be older. B. 39. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. A. B. 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. Amy has a master's degree in secondary education and has been teaching math for over 9 years. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Can I stay on my parents insurance if I file taxes independently? If one should die, they think that funeral expenses would be $12,000. D. You can convert your policy to a permanent type at the end of the term. 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? C. Final life payment. Plus, get practice tests, quizzes, and personalized coaching to help you For example, your life insurance coverage amount will need to pay for funeral expenses, any outstanding debts, any remaining mortgage, and maybe even future financial support for a spouse or children. A. B.
Shaan and anita are married and have two children, ages 9 and - Brainly Group life C. Limited life D. Universal life E. Variable life, 49. E. Proceeds left with the company. Group life C. Limited life D. Universal life E. Variable life, 52. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL.
Chapter 10 true and false Flashcards | Quizlet Which of the following riders should he consider? Money Market | Graph, Demand Curve & Model, Rate of Return Formula & Examples| How to Calculate the Rate of Return, Bank Liabilities & Assets | Overview, Differences & Examples, How to Choose a Career: Guidance Counseling, Principles of Macroeconomics: Certificate Program, Principles of Microeconomics Syllabus Resource & Lesson Plans, AEPA Economics (AZ035): Practice & Study Guide, Holt McDougal Economics - Concepts and Choices: Online Textbook Help, DSST Personal Finance: Study Guide & Test Prep, Hawaii Real Estate Salesperson Exam: Study Guide & Practice, CPA Subtest III - Financial Accounting & Reporting (FAR): Study Guide & Practice, Glencoe Earth Science: Online Textbook Help, Holt McDougal Algebra 2: Online Textbook Help, McDougal Littell Algebra 2: Online Textbook Help, Create an account to start this course today. Let's review. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. ^Individual death claims settled and reported in public disclosures for FY 2021-22. NOT FDIC INSURED. You policy will continue for one year. What is the amount of life insurance they should carry using the easy method? The premiums & funds are subject to certain charges related to the fund or to the premium paid. 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. Limited installment payment. Or, you can call us at (800) 797-1000. Watch on to see what they are. 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. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Limited installment payment. But from a financial perspective, it does not have to be a crisisif you have good planning. A person who is named to receive the benefits from an insurance policy is a(n) A. One of our associate will call you back shortly. 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. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. $40,000 B. The second is the DINK method. Which of the following households most likely has the greatest need for life insurance? An error occurred trying to load this video. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. Estimate how much life insurance Tim and Allison should carry. In contrast to the biopsychosocial model, the biomedical model views health as ___________. A. Ben. With the right term insurance policy in place, stay prepared for any adversity. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest.
$4,000. Which of the following is NOT a type of permanent life insurance? It will take your youngest child 15 more years to reach 18. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2.
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. B. Its free, with no obligation. IN THIS ARTICLE Disability income insurance, which complements health insurance, can replace lost income and help protect you and your family from an otherwise financially catastrophic illness or injury. A. B. Mortality and expense risk charge. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Net deposits returned to students totaled $10. Another name for a straight term policy is A. Renewable term. An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money, The lower the interest-adjusted index, the lower the cost of a 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. Straight life. Were your family to lose that, you lose all of that labor. Create your account, 18 chapters |
Futures Contract in Finance Purpose & Examples | What Are Futures?
Estimating Life Insurance Needs Using the DINK Method You The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. Term insurance for non-working spouse in India will be of great help. The question is, how big are yours? 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. Also, if you try to make up some of that yourself, you lose income and income potential.
Chapter 10 Personal Finance - Subjecto.com More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. Please check your entries and try again. C. It is more expensive than term insurance. 96. When can I switch from original Medicare to an Advantage plan? Is equipment floater the same as inland marine? 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. 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. $12,000 B. Using the nonworking spouse method, what should be the life Protection against loss of life for a specified term. T&C apply. She was recently divorced.
Using the nonworking spouse method what should be the life insurance Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? Further, you estimate that your funeral will cost $6,000. Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid.
40. D. Insurer. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. Whole life B. You own a home with a mortgage of $110,000, and Fixed Annuities are long-term insurance products. Amy bought a life insurance policy and named Ben as her beneficiary. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. 27. Contract.
PDF Life Insurance Needs: Rules of Thumb - Wickham Services $12,000 in 15 years. C. Final life payment. Insurance Premium
So your life insurance requirement is 15 $10,000 = $150,000. Jeff and Erica have two children. A. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. What method would probably be the best. For a non-Working Spouse. 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. d. 28. What is your life insurance need using the DINK method? D. Allowed annuities to be purchased for individual retirement accounts. Which of the following provisions will affect the amount of money his beneficiaries will receive? Which of the following is a poor choice for the amount of protection offered for an individual? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. What is the cost of living in California? A. Estimate how much life insurance Tim and Allison should carry to cover Allison. A deferred annuity allows an individual to receive payments from an annuity immediately. To Buy: 1800-258-5899 (9:30 AM to 6:30 PM), For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003, Managing Director & Chief Executive Officer. Something went wrong. Group life B. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. D. You must pay interest on any outstanding policy loans. You can convert your policy from permanent to term at any time. \quad\text{Deposits held in custody for others}&&\text{700}\\ 66. You can convert your policy to a permanent type at the end of the term. Fixed annuity B. Lastly, it allows you to keep your future obligations: college, paying off debts, weddings, bar mitzvahs and bat mitzvahs, sweet sixteens, and all the other things that you want to do for your kids. False. Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? 59.
B. A. 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. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. He has since died. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. Best Investment Options in India
The timing for payments of a variable annuity are variable. On occurrence of first death or diagnosis of terminal illness, to either of you, the sum assured on death corresponding to the affected life is paid and the policy continues with life cover for the other life with reduced premium. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Goods & Services Tax will be charged on the premium amount. You have to drive them to and from school, oversee homework and music practice. Sell you the highest level of coverage available. C. 10 days. They plan to purchase life insurance using this formula: (18 Youngest childs age) $10,000. Which of the following is NOT a feature of whole life insurance? The first method is called the easy method. A. Multiply the income . Using the DINK method, what should be your need for life insurance? B. Renewable term. The process standard deviaton 46. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. A process has specification limits of LSL 5 540 and USL 5 550. 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. What is the amount of life insurance they should carry using the "nonworking" spouse method? 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. You have no other debt. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. D. The policy features. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. 42. 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. B. Estimate how much life insurance Tim and Allison should carry to cover Allison. 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. A. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. 67. 1. 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. Whole Life Insurance
Single adult living alone. A. Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. Experts are tested by Chegg as specialists in their subject area. 38. You are the wage earner in a typical family, with $55,000 gross annual income. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. What kind of policy would you want to purchase? Jumping the Wealth Curve with Edward E. Bao Jr. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. 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. 2. A. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. nonworking spouse whose youngest child is 6 years old? A. Variable life C. Universal life D. Adjustable life E. Decreasing term life. This last method is called the family need method.
82. She, wants to determine her insurance needs. Of course, it would be a tragedy were something to happen to your spouse. Using time value of money and assuming you could invest your 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 Each earns $45,000 annually. D. Decreasing term. The policy loan provision means that A. Try refreshing the page, or contact customer support. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. This is a method that has you adding half of all your debts plus funeral expenses. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. T&C Apply. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. Buying from a financially strong company B. \textbf{June 30, 2019}\\ 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. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. B. Claim Settlement Ratio
C. A life insurance policy allows the beneficiary to receive proceeds at some future date. The maturity benefit is Rs. They have determined that their annual income is $70,000 and their net worth is now $150,000. the income provider's salary. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. B. After payment was received, tuition Allison is a "nonworking" spouse who devotes all of her time to household activities. Life insurance companies issue a lot of paperwork. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. C. The policy owner can borrow any amount up to the cash value of the policy. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ We are living in times of uncertainty. See Answer
Diffusion Let us complete them for you. This is a method that has you adding half of all your debts plus funeral expenses. A. Adjustable life B. Factors That Affect Life Insurance Premiums
Jeff and Erica have two children. . \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ What are the stages of the General Adaptation Syndrome (GAS)? We look forward to speaking with you. The Policy will terminate after payment of this benefit. E. Pay taxes. 35. The "Family Need" Method. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ a. a way of calculating an inventory's value Your spouse expects to continue to work after your death. Tim and Allison are married and have two children, ages 4 and 7. If you have a renewable term policy, A. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. But life insurance rates can vary dramatically among applicants, insurers and policy types. You may not purchase insurance once your term ends. insurance needs using the DINK method. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. method, what should be your need for life insurance? C. The mortality rate it expects among its policy holders. B. 700 cartons to be stored. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? 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? Which of the following statements is incorrect? 5 days. age 35 may expect to live. 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. B. Bens beneficiaries. The most common settlement option for a life insurance program is the lump-sum payment. $50,000 C. $80,000 D. $100,000 E. $180,000 B. Using the easy There are many situations to consider, and the methods you just heard about may or may not fit your needs. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, determine the minimum amount of life insurance you should carry, the easy method to determine how much life insurance you should carry. C. The policy will return all premiums if you survive to the end of the policy. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! As a member, you'll also get unlimited access to over 88,000 D. Limited payment. E. None of these is correct. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? Estimate your total Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. 1. 101. Welcome to the Wealth Curve Talk Podcast. Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? Which method are they using to determine their life insurance needs? For example, say your immediate needs upon death are $10,000 for funeral expenses, $50,000 for emergencies, and $95,000 for mortgage, credit card, and college loans. \textbf{Liabilities and Net Assets}\\ You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. 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. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. 76. C. Identified annuities to be the same as certificates of deposit. Past performance of the investment funds do not indicate the future performance of the same. \end{array} 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. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. \textbf{Assets}\\ About ___ of the U.S. life insurance companies are stock companies. Multiply the number of years until the youngest child reaches 18 by $10,000. Jeff Willis has five kids and more debt than the, average family. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. A. 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. Allison is a "nonworking" spouse who devotes all of her time to household activities. Let us have a look at your work and suggest how to improve it! A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. Likewise, when using the rule of 72, the number 72 is used in the calculation. $86,000 C. $98,000 D. $172,000 E. $217,000.
Chapter 10 True False Flashcards | Quizlet Do both you and your spouse need life insurance? It equals the cost of replacing the property. 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. B. \text{Liabilities:}\\ Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.