A. What. Allison is a "nonworking" spouse who devotes all of her time to household activities. A. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. Use 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. Course Hero is not sponsored or endorsed by any college or university. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Straight life C. Ordinary life D. Term life E. Cash value life. She may need to change her coverage as her needs change. With the right term insurance policy in place, stay prepared for any adversity. Buying from a financially strong company B. 5% B. B. 35. The return on its investments. A. Waiver of premium disability benefit B. C. Final life payment. Wendy has had a life insurance policy for five years. 1. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. C. Decreasing term. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. Which of the following riders would allow her to receive cash now? How much term does a non-working spouse get? 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. Jeff and Erica have two children. D. Spend money. refunds of$11,200 were given. Enrolling in a course lets you earn progress by passing quizzes and exams. How to Estimate Life Insurance Requirements - Study.com Chapter 10 Personal Finance - Subjecto.com copyright 2003-2023 Study.com. False. 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. 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. If you have a multiyear level term policy, A. Investors in the Scheme are not being offered any guaranteed / assured returns. C. It is more expensive than term insurance. D. It builds cash value. The Policy will terminate after payment of this benefit. The premiums & funds are subject to certain charges related to the fund or to the premium paid. Which of the following is NOT a type of permanent insurance? A. Single adult living alone. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. D. You must pay interest on any outstanding policy loans. The sooner a person is likely to die, the lower the premiums he or she will pay. Which of the following is NOT a feature of whole 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. Everyone is impacted by these 5 problems. Sum Assured as chosen by the Working Spouse under the Plan. Amy has a master's degree in secondary education and has been teaching math for over 9 years. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands), AssetsCashandcashequivalents$734Short-terminvestments7,666Tuitionandfeesreceivable(netofdoubtfulaccountsof$12)230Pledgesreceivable(netofdoubtfulaccountsof$280)5,872Prepaidassets1,364Property,plan,andequipment(netofaccumulateddepreciationof$104,240)281,404Investments(atfairvalue,costof$162,000)158,400Totalassets$455,670LiabilitiesandNetAssetsLiabilities:Accountspayableandaccruedliabilities$21,130Depositsheldincustodyforothers700Unearnedrevenue900Bondspayable99,000Totalliabilities127,730Netassets:Withoutdonorrestrictions$104,000Withdonorrestrictions229,940Totalnetassets333,940Totalliabilitiesandnetassets$455,670\begin{array}{lrr} For example, say you're the only one working in your family and your youngest child is three. Welcome to the Wealth Curve Talk Podcast. C. Final life payment. Amy has worked with students at all levels from those with special needs to those that are gifted. You have no other debt. C. Her contingent beneficiaries. Amy bought a life insurance policy and named Ben as her beneficiary. Chapter 10 true and false Flashcards | Quizlet All rights reserved. You estimate that funeral expenses will be $5,000. Types of Life Insurance B. You and your spouse are in good health and have reasonably secure jobs. A. Your premium may increase if you continue it for another term because you will be older. C. Moodys. Limited installment payment. An individual can take out a loan on his or her term policy. Insurance Need: . They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. T&C Apply. PK ! D. Your policy will have the same premium as other term policies. Sum Assured fixed at Rs. 401(k) plans. d. a way of shipping goods to customers Time Value of Money Formula & Examples | What is Time Value of Money? 44. What percentage of your income should you spend on life insurance? \textbf{Liabilities and Net Assets}\\ Is equipment floater the same as inland marine? 72. Not necessarily. Can I stay on my parents insurance if I file taxes independently? Life expectancy for men is longer than that for women. C. Your premium will not increase because your policy is renewable. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. E. Cash value life. The last thing to realize is that calculating your life insurance needs can be tricky. One of our associate will call you back shortly. Please check your entries and try again. If the policy exists, you can ask if you're a beneficiary. You have a spouse, two kids, a dog and a mortgage - a typical family. $30,000 B. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? Look through financial records. Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. . B. Premium payments are fixed with a Variable Life Policy, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy. For example, say. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. Easy method C. DINK method D. Family need E. Soccer mom 95. Of course, it would be a tragedy were something to happen to your spouse. age 35 may expect to live. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. E. Weiss Research. Ag;sE2/yNNF;eF]!hiV^r^l PK ! The premium shall be adjusted on the due date even if it has been received in advance. insurance needs for a family whose youngest child is 5 years Group life C. Limited life D. Universal life E. Variable life, 52. C. Ordinary life. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). 101. D. Allowed annuities to be purchased for individual retirement accounts. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. D. Life income option. 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. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. Create your account, 18 chapters | GST On Life Insurance Jeanne wants to purchase a life insurance policy with guaranteed premiums. A. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. E. Proceeds left with the company. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. Also, if you try to make up some of that yourself, you lose income and income potential. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. D. Limited payment. $12,000 in 15 years. Using the DINK method, what should be your need for life insurance? More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. Jumping the Wealth Curve with Edward E. Bao Jr. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Using the nonworking spouse method what should be the life insurance 42. Which of the following provisions will affect the amount of money his beneficiaries will receive? 96. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. Donald and Charlene are married and do not have any children. 59. 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. False. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. B. C. A life insurance policy allows an individual to receive payments from an annuity at once. A. 82. A. Adjustable life B. Under this method, the original principal that you save will still remain at the end of the income period. This term life policy will guarantee that you will pay the same premium for the duration of your policy. Another name for permanent life insurance is A. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Insurance needed. A. Each earns $45,000 annually. 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? Your premium will not increase when you renew it. B. Mortality and expense risk charge. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). 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. This is a method that has you adding half of all your debts plus funeral expenses. 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. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. a. a way of calculating an inventory's value Which of the following policies should she buy? Your annual income is $100,000. Suppose that yours is a typical family. Best Investment Options in India As a member, you'll also get unlimited access to over 88,000 About ___ of the U.S. life insurance companies are stock companies. 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. B. Bens beneficiaries. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. $12,000 B. D. Term life insurance plans. participating policy (dividends will be used to build up the cash value of the policy). 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. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. A. Institutional support 28,500. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. PDF Life Insurance Needs: Rules of Thumb - Wickham Services Do both you and your spouse need life insurance? Which of the following products allows an individual to receive payments beginning now? Term insurance for non-working spouse in India will be of great help. Please consult your independent tax advisor for details. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. You heard about several methods you can use to calculate your life insurance needs. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. 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. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. See Answer Chapter 10 True False Flashcards | Quizlet Group life C. Limited life D. Universal life E. Variable life, 51. The Wealth Curve Talk with John L. Smallwood. E. All of these affect the price. In contrast to the biopsychosocial model, the biomedical model views health as ___________. 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. You must pay interest on any loans. The maturity benefit is Rs. B. They have determined that their annual income is $70,000 and their net worth is now $150,000. 48. This gives you 7 years of wages at 70%. method, what should be your need for life insurance? Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. 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. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. A. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. This method is called the non-working spouse method. The companys cost of doing business. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. \end{array} This method is called the non-working spouse method. 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. 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. Allison is a "nonworking" spouse who devotes all of her time to household activities. lessons in math, English, science, history, and more. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. This method is called the non-working spouse method. Whole life. Use Exhibit 1-B. was specifically designed for someone in her situation? Further, you estimate that your funeral will cost $6,000. - 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? D. Life income option. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). You can convert your policy to a permanent type at the end of the term.

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