200 lessons. E. Convince you to buy the policy that will pay her the highest commission. All guarantees are based on the continued claims paying ability of the issuing company. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. If you have a multiyear level term policy, A. Your needs will also change over time, so your life insurance needs may also change over time. Best Investment Options in India $140,000 B. C. Identified annuities to be the same as certificates of deposit. 48. $13,000 B. Likewise, when using the rule of 72, the number 72 is used in the calculation. What is the amount of life insurance they should carry using the easy method? to work after your death. This is also the most thorough method. A. Allison is a "nonworking" spouse who devotes all of her time to household activities. Or, you can call us at (800) 797-1000. Surrender charge. We are living in times of uncertainty. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm All of the following are major rating agencies for insurance except A. If you have a conversion term policy, A. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Life Insurance Underwriting 2003-2023 Chegg Inc. All rights reserved. The investment risk in investment portfolio is borne by the policyholder. But from a financial perspective, it does not have to be a crisisif you have good planning. Get unlimited access to over 88,000 lessons. Tim and Allison are married and have two children, ages 3 and 6. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. A. 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. Which of the following provisions should she take action on? A. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. For a non-Working Spouse. The first method is called the easy method. E. Credit life. 75. D. Decreasing term. Instruction$86,100 A. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. A. 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. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = Of course, it would be a tragedy were something to happen to your spouse. Can you buy life insurance for someone who is dying? See Answer Your annual income is $100,000. Let's review. Which of the following riders provided an additional benefit for his heirs? Cash value. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. Is life insurance for married couples cheaper? Jeff and Erica have two children. A. Waiver of premium disability benefit B. Which of the following is NOT important when buying life insurance? It equals the cost of replacing the property. You have no plans to increase the size of your family in \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a 37. Limited installment payment. 97. This method is called the non-working spouse method. What happens if you dont get life insurance? insurance needs for a family whose youngest child is 5 years Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. A deferred annuity allows an individual to receive payments from an annuity at some future date. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Solved Using the "nonworking" spouse method, what should be - Chegg Chapter 10 true and false Flashcards | Quizlet Insurance needed. Insurance Need: ? Claim Settlement Ratio 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 are the four methods of determining life insurance needs? I feel like its a lifeline. Which of the following riders should he consider? '`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+ Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. Group life C. Limited life D. Universal life E. Variable life, 50. 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. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. C. Policyholder. A deferred annuity allows an individual to receive payments from an annuity immediately. Please check your entries and try again. $12,000 B. This is a method that has you adding half of all your debts plus funeral expenses. the easy method to determine how much life insurance you should carry. When can I switch from original Medicare to an Advantage plan? What is the most important part of an insurance agents job? Which of the following allows an individual to receive a fixed amount of income over a certain period of time, or over his or her life? 25,00,000 which will remain same throughout the Policy Term. Features of Life Insurance Limited installment payment. A. 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. For example, say. This method is called the non-working spouse method. 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. Which of the following life insurance policies should she apply for? Multiply the number of years until the youngest child reaches 18 by $10,000. 41. Buying from a financially strong company B. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. A. Waiver of premium disability benefit B. 4.Tax benefit of Rs. D. Life income option. What method. 78. B. A. Adjustable life B. Insurance Need: . D. Fund expense. Use the multiple of income method to Amy has worked with students at all levels from those with special needs to those that are gifted. Using the easy 45. Yes! In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Use Exhibit 1-B. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. 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. 73. 700 cartons to be stored. Which of the following riders would allow her to receive cash now? If one should die, they think that funeral expenses would be $12,000. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. But life insurance rates can vary dramatically among applicants, insurers and policy types. Further, you estimate that your funeral will cost $6,000. B. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. E. Proceeds left with the company. Its like a teacher waved a magic wand and did the work for me. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. After you purchase a life insurance contract, you have a "free look" period that lasts A. Your spouse expects to continue Variable life C. Universal life D. Adjustable life E. Decreasing term life. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Todd plans to purchase a life insurance policy from a stock life insurance company. A. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Create your account, 18 chapters | Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Protection against loss of life for a specified term. The DINK method has you adding half of all your debts to your funeral expenses. B. determine the minimum amount of life insurance you should carry. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card D. Spend money. Term insurance for non-working spouse in India will be of great help. E. No interest will accumulate for any loans related to life insurance. If their youngest child is 5 years old, how much do they need? You policy will continue for one year. Whole life. TERMS OF SERVICE Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. Which of the following is NOT temporary insurance? \text{Liabilities:}\\ A. The total debts of you and your spouse include the following: mortgage, $200,000; auto loan, $16,000; credit card balance, $2,000; and personal debts of $4,000. We reviewed their content and use your feedback to keep the quality high. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. False. A. Term C. Credit life D. Endowment life E. Adjustable life, 53. C. Her contingent beneficiaries. What will be the surrender value of LIC policy after 5 years? Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. 59. The policy loan provision means that A. 12-3 Its free, with no obligation. Sum Assured as chosen by the Working Spouse under the Plan. Beneficiary. GST On Life Insurance $4,000. This gives you 7 years of wages at 70%. 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. What percentage of your income should you spend on life insurance? A. Can you get life insurance on a spouse? \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ 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. insurance needs using the DINK method. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ Estimate how much life insurance Tim and Allison should carry to cover Allison. In this episode, John continues his series on the. You can convert your policy to a permanent type at the end of the term. E. Single year term. This is a very common type of policy taken by homeowners who want to support their children financially. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. to work after your death. 66. The income replacement approach is a method of determining the amount of life insurance you should purchase. 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. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ Which of the following is NOT a type of permanent insurance? \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ Diffusion Let us complete them for you. 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. Suppose that yours is a typical family. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. D. Term. An individual can take out a loan on his or her term policy. \textbf{STEINER COLLEGE}\\ Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. E. Independently wealthy adult. A. old? Which method are they using to determine their life insurance needs? The recommendation is to have seven to ten years of life insurance. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. Group life C. Limited life D. Universal life E. Variable life, 52. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! This last method is called the family need method. 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. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. What is your life insurance need using the DINK method? They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. \text{Short-term investments}&&\text{7,666}\\ Collections on Tuition and Fees Receivable totaled$222,600. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. E. The policy requires that you pay a specified premium each year for the rest of your life. \text{Prepaid assets}&&\text{1,364}\\ Welcome to the Wealth Curve Talk Podcast. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. 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. B. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. All other trademarks and copyrights are the property of their respective owners. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. Do both you and your spouse need life insurance? C. The policy owner can borrow any amount up to the cash value of the policy. A. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Further, you estimate that your funeral will cost $6,000. You have a spouse, two kids, a dog and a mortgage - a typical family. B. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. About ___ of the U.S. life insurance companies are stock companies. An error occurred trying to load this video. 27. 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. Whole Life Insurance 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. 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. method, what should be your need for life insurance? 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.
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