Ronaldo And Mbappe Who Is Faster, Articles T

B. You have a gross annual income of $62,000. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. This method is called the non-working spouse method. Which method are they using to determine their life insurance needs? Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. A. D. Insurer. Try refreshing the page, or contact customer support. What is the cost of living in California? 81. They have determined that their annual income is $70,000 and their net worth is now $150,000. E. Single year term. 37. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. The premiums & funds are subject to certain charges related to the fund or to the premium paid. 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. C. Tell you why her product is better than the competitors. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. A. D. A fixed annuity is one where the investments made into the annuity are variable. Use Exhibit 1-B. Which of the following is NOT temporary insurance? She, wants to determine her insurance needs. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. D. Standard & Poors. So your life insurance requirement is 15 $10,000 = $150,000. 24. What is the amount of life insurance they should carry using the "nonworking" spouse method? 42. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. Which of the following policies should she buy? 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 is NOT a type of permanent insurance? Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year However, where the premium due in a financial year is being collected in previous financial year, the premium may be collected for a maximum period of three months in advance of the due date of the premium. 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. They plan to purchase life insurance using this formula: Current income 7 70%. B. 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. The last thing to realize is that calculating your life insurance needs can be tricky. Sum Assured as chosen by the Working Spouse under the Plan. Amy has worked with students at all levels from those with special needs to those that are gifted. 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. If you have a conversion term policy, A. TERMS OF SERVICE Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. Can you buy life insurance for someone who is dying? NOT INSURED BY ANY STATE OR FEDERAL AGENCY. 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. The process standard deviaton False. Estimate how much life insurance Tim and Allison should carry to cover Allison. A. 67. The question is, how big are yours? Investors in the Scheme are not being offered any guaranteed / assured returns. Using Exhibit 12-1, determine the average numbers of additional years males alive at 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. It equals the cost of replacing the property. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. GST On Life Insurance E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ All other trademarks and copyrights are the property of their respective owners. Your rates will vary based on your unique circumstances, just as they would if you were single. This problem has been solved! In this episode, John continues his series on the. Straight life C. Ordinary life D. Term life E. Cash value life. 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. How to estimate life insurance requirements for a non working spouse? Each earns $45,000 annually. C. Individual retirement accounts (IRAs). Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. B. Your premium may increase if you continue it for another term because you will be older. 96. Using the easy \textbf{Statement of Financial Position}\\ Which of the following statements is correct? This is a very common type of policy taken by homeowners who want to support their children financially. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. Now, if it's just you and your spouse, you can use the DINK method. C. Final life payment. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. Another name for a straight term policy is A. Renewable term. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! You have no plans to increase the size of your family in With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. T&C apply. A. E. None of these. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. C. Decreasing term. What is the most important part of an insurance agents job? \textbf{(amounts in thousands)}\\ 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! Sum Assured fixed at Rs. Endowment Plans This is a very common type of policy taken by homeowners who want to support their children financially. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. You estimate that funeral expenses will be $5,000. 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. The maturity benefit is Rs. You pay premiums each year for the rest of your life. Group life C. Limited life D. Universal life E. Variable life, 52. Use the easy method to determine how much insurance she should carry. What is Life Insurance? Purchasing a life insurance policy is a basic and inexpensive task. 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. Which of the following households most likely has the greatest need for life insurance? All of the following are major rating agencies for insurance except A. 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? \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ A deferred annuity allows an individual to receive payments from a life insurance policy immediately. Annuity Formula, Calculation & Examples | What is an Annuity? Multiply the income . A. Yes. Do both you and your spouse need life insurance? Work with our consultant to learn what to alter. A. Adjustable life B. 73. What. Can someone be denied homeowners insurance? nonworking spouse whose youngest child is 5 years old? Is equipment floater the same as inland marine? D. Fund expense. succeed. 69. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. to work after your death. 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 Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. 3 days. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). A.M. Best. D. Household with children. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? Collections on Tuition and Fees Receivable totaled$222,600. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of$26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of$4,700 ($790 was related to investments restricted for scholarships,$1,610 was related to the permanent endowment, the remainder was related to net assets without donor restrictions). 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. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Net deposits returned to students totaled $10. D. The policy features. age 35 may expect to live. \textbf{Liabilities and Net Assets}\\ NOT FDIC INSURED. 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. C. Final life payment. B. Which of the following riders provided an additional benefit for his heirs? Life expectancy for men is longer than that for women. 12-3 C. The policy will return all premiums if you survive to the end of the policy. After payment was received, tuition What method would probably be the best. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Its like a teacher waved a magic wand and did the work for me. b. the number of each item you have in stock D. Decreasing term. c. the charge per 100 pounds to ship goods by truck \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ DINK stands for double income, no kids. 4.Tax benefit of Rs. 2. 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. This website helped me pass! The insurer may tell you, or it may ask you to submit a form reporting the death. Marianne and Roger are in good health and have reasonably secure careers. Yes! 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. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. It will take your youngest child 15 more years to reach 18. 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. B. \textbf{June 30, 2019}\\ Which method are they using to determine their life insurance needs? What are the stages of the General Adaptation Syndrome (GAS)? For example, say. You and your spouse are in good health and have reasonably secure jobs. method for him to use to calculate his insurance needs? When deciding the right amount of coverage required for your spouse, everyones need may be different. Buying from a financially strong company B. Certificates of deposit. 82. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid. the easy method to determine how much life insurance you should carry. A deferred annuity allows an individual to receive payments from an annuity immediately. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Your spouse expects to continue to work after your death. A. Adjustable life B. \text{Short-term investments}&&\text{7,666}\\ Term C. Credit life D. Endowment life E. Adjustable life, 53. Ag;sE2/yNNF;eF]!hiV^r^l PK ! 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. The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets, Mutual life insurance companies specialize in the sale of nonparticipating policies, Another name for straight term is renewable return-of-premium term, Decreasing term pays less to the beneficiary as time passes, Return-of-Premium term pays out all premiums plus interest to a beneficiary. E. Cash value life. Now, you take this number and subtract your available assets from this number. I would definitely recommend Study.com to my colleagues. Which of the following is a poor choice for the amount of protection offered for an individual? 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. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. 26. 5% B. A. Waiver of premium disability benefit B. 80. \quad\text{Unearned revenue}&&\text{900}\\ 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. 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. 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 life insurance rates can vary dramatically among applicants, insurers and policy types. The return on its investments. B. Jeff Willis has five kids and more debt than the, average family. A. \textbf{Assets}\\ 58. 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? The second is the DINK method. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. DINK stands for double income, no kids. 44. [Content_Types].xml ( Y0}GM One of our associate will call you back shortly. 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. Your needs will also change over time, so your life insurance needs may also change over time. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. Allison is a "nonworking" spouse who devotes all of her time to household activities. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. You are a dual-income, no-kids family. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. B. Group life B. Jumping the Wealth Curve with Edward E. Bao Jr. What will be the surrender value of LIC policy after 5 years? The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. Get unlimited access to over 88,000 lessons. 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. Whole life. Which of the following is NOT important when buying life insurance? 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. copyright 2003-2023 Study.com. Easy method C. DINK method D. Family need E. Soccer mom 95. Another name for temporary life insurance is A. old? It will have a lower coverage amount and a waiting period (usually 2 year). Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. PK ! 45. 27. In other words, you will have to show why you want to insure the individual. 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. For example, say you're the only one working in your family and your youngest child is three. A. D. Limited payment. E. Proceeds left with the company. I highly recommend you use this site! A. Further, making sure that your non-working or part-time working spouse has the maximum amount of coverage based upon your coverage is a fundamental of good planning. Something went wrong. You can take out a life insurance policy on your spouse if you have an insurable interest. C. Retired couple with a pension. B. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). Fred bought life insurance five years ago. Diffusion Let us complete them for you. Protection against loss of life for a specified term. Which of the following riders should he consider? In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. B. Mortality and expense risk charge. Sell you the highest level of coverage available. E. The policy requires that you pay a specified premium each year for the rest of your life. Using the DINK method, what should be your need for life insurance? He has since died. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. DESIGNED BY: INTERSOFT ASSOCIATES. You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a Pay off a mortgage. D. It builds cash value. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. Ask to set up a Wealth Curve conversation. Competition among companies with comparable policies can affect the price a company charges for life insurance. 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. 25% C. 50% D. 75% E. 95%, 32. B. Dun & Bradstreet. What kind of policy would she want to purchase? $196,000 C. $280,000 D. $400,000 E. $430,000, 83. d. 28. What is the amount of life insurance they should carry using the easy method? Which of the following is NOT a feature of whole life insurance? D. Your policy will have the same premium as other term policies. Suppose that yours is a typical family. lessons in math, English, science, history, and more. Features of Life Insurance C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). 93. Experts are tested by Chegg as specialists in their subject area. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ Factors That Affect Life Insurance Premiums A. What is their total insurance need using the DINK method? 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. Answer . The timing for payments of a variable annuity are variable. True The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets False Mutual life insurance companies specialize in the sale of nonparticipating policies False 78. Your spouse expects to continue to work after your death. 65. . B. Using the nonworking spouse method, what should be the life insurance needs for a Using the DINK method, what should be your need for life insurance? D. Term life insurance plans. 5. 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. What kind of policy is he planning to purchase? To unlock this lesson you must be a Study.com Member. Insurance Need: . Amy has a master's degree in secondary education and has been teaching math for over 9 years. 41. is =1.25\sigma = 1.25=1.25. You own a home with a mortgage of $110,000, and A. Georgia was supposed to pay her premium by the 15th of the month. \text{Prepaid assets}&&\text{1,364}\\ A. Adjustable life B. 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. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. A. Life insurance companies issue a lot of paperwork. Surrender charge. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. Judy and James have a 4-year-old child.