Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. A. Waiver of premium disability benefit B. What impact do they have on your wealth potential. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 False. loans. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. 40. E. Single year term. Beneficiary. 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. 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. Let's review. Instruction$86,100 Sum Assured as chosen by the Working Spouse under the Plan. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. Jumping the Wealth Curve with Edward E. Bao Jr. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. Under this method, the original principal that you save will still remain at the end of the income period. Is equipment floater the same as inland marine? The non-working spouse method is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. But from a financial perspective, it does not have to be a crisisif you have good planning. A. b. the number of each item you have in stock When using the rule of 70, the number 70 is used in the calculation. Estimate how much life insurance Tim and Allison should carry. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? to work after your death. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. 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. Which of the following is NOT a feature of whole life insurance? Term insurance B. Whole life B. lessons in math, English, science, history, and more. 70. Single adult living alone. Estimate how much life insurance Tim and Allison should carry to cover Allison. The companys cost of doing business. You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a 401(k) plans. D. The beneficiary can borrow any amount up to the total benefit. Your annual premium is $1,000. Which of the following riders should he consider? 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. It accumulates cash value. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. Contract. This method is used only to calculate child care needs, not the total financial needs of the family. Enrolling in a course lets you earn progress by passing quizzes and exams. 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. 12-3 Amy has a master's degree in secondary education and has been teaching math for over 9 years. the near future. C. The policy will return all premiums if you survive to the end of the policy. In other words, you will have to show why you want to insure the individual. What is non working spouse method? - InsuredAndMore.com \text{Short-term investments}&&\text{7,666}\\ Which of the following provisions should she take action on? Not necessarily. Estimate your total The Wealth Curve Talk with John L. Smallwood. E. None of these. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. 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. age 35 may expect to live. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. 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. \end{array} This term life policy will guarantee that you will pay the same premium for the duration of your policy. But life insurance rates can vary dramatically among applicants, insurers and policy types. Allison is a "nonworking" spouse who devotes all of her time to household activities. Of the following, which one is the most positive feature of whole life insurance? An individual can take out a loan on his or her term policy. E. Pay taxes. What is the amount of life insurance they should carry using the "nonworking" spouse method? C. Ordinary life. The last thing to realize is that calculating your life insurance needs can be tricky. D. Limited payment. Tim and Allison are married and have two children, ages 4 and 7. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. 5 days. A. Which of the following is the process of getting oxygen from the environment to the tissues of the body? They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Watch on to see what they are. The first is the easy method. . 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. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. In contrast to the biopsychosocial model, the biomedical model views health as ___________. 47. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. A. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. A. Further, you estimate that your funeral will cost $6,000. The policy loan provision means that 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. 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. 59. 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? B. Multiyear level term. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. 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. Easy method C. DINK method D. Family need E. Soccer mom 95. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. $140,000 B. \textbf{Assets}\\ C: Consumer Agencies & Organizations, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, How to Choose a College: Guidance Counseling, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Certificate Program, Effective Communication in the Workplace: Help and Review, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Intro to Excel: Essential Training & Tutorials, Information Systems and Computer Applications: Certificate Program, GED Social Studies: Civics & Government, US History, Economics, Geography & World, What is Whole Life Insurance? $18,000 C. $50,000 D. $130,000 E. $180,000, 84. 5. 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. Life expectancy for men is longer than that for women. $12,000 B. A. 44. E. No interest will accumulate for any loans related to life insurance. D. Insurer. Its free, with no obligation. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). 200 lessons. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. B. 37. method, what should be your need for life insurance? is =1.25\sigma = 1.25=1.25. Use the easy method to determine how much insurance she should carry. C. You can convert your term policy to a permanent policy. Here's how to calculate the estimated life insurance need: 1. Get unlimited access to over 88,000 lessons. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o D. Her parents. And a term insurance cover for house makers, non-working spouses, or say a housewife, proves helpful exactly here, ensuring your family tides over the financial damages in case something unfortunate happens. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. Which of the following is NOT important when buying life insurance? Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. C. Your premium will not increase because your policy is renewable. . Pay off a mortgage. What is the cost of living in California? Allison is a "nonworking" spouse who devotes all of her time to household activities. Welcome to the Wealth Curve Talk Podcast. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. A. Ben. You have no plans to increase the size of your family in 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. Another name for temporary life insurance is A. A. D. Household with children. If their youngest child is 5 years old, how much do they need? The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Your premium may increase if you continue it for another term because you will be older. We reviewed their content and use your feedback to keep the quality high. It also collected $820 of Pledges Receivable that were unrestricted. Sum Assured as chosen by the Working Spouse under the Plan. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Use makes about $38,000 annually. A. Waiver of premium disability benefit B. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ Limited installment payment. Which method are they using to determine their life insurance needs? The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. This is a method that has you adding half of all your debts plus funeral expenses. A. What kind of policy would you want to purchase? Which of the following riders provided an additional benefit for his heirs? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. D. Life income option. Please consult your independent tax advisor for details. \textbf{STEINER COLLEGE}\\ This problem has been solved! Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Your spouse expects to continue to work after your death. Anita is a "nonworking" spouse who devotes all of her time to household activities. Yes. 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. DINK stands for double income, no kids. E. None of these is correct. Diffusion Let us complete them for you. Course Hero is not sponsored or endorsed by any college or university. A deferred annuity allows an individual to receive payments from an annuity immediately. With the right term insurance policy in place, stay prepared for any adversity. False. Which of the following products allows an individual to receive payments beginning now? If you have a multiyear level term policy, A. Types of Life Insurance 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. B. How to Estimate Life Insurance Requirements - Study.com With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. What is the most important part of an insurance agents job? Sell you the highest level of coverage available. The second is the DINK method. B. C. Temporary insurance. Judy and James have a 4-year-old child. Which method are they using to determine their life insurance needs? 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Ask to set up a Wealth Curve conversation. 46. Reasons for Life Insurance Claim Rejection, Head Office : 139 P Sector - 44,Gurugram - 122003Haryana, India, www.lifeinscouncil.org | IRDAI Registration no: 136. www.irdai.gov.in WEBNJV3CHODEC17 ENG | CIN: U66010DL2007PLC248825. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. A. You and your spouse are in good health and have reasonably secure jobs. Use Exhibit 1-B. C. Administrative fee. Fixed annuity B. old? You have to drive them to and from school, oversee homework and music practice. The average cost of life insurance is $27 a month. 72. E. Independently wealthy adult. E. Proceeds left with the company. 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 C. Identified annuities to be the same as certificates of deposit. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. Life Insurance for Spouse (Non-Working): All You Need To Know 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. Estimate how much life insurance Tim and Allison should carry to cover Allison. What percentage of your income should you spend on life insurance? 101. succeed. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. Limited installment payment. 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. The first method is called the easy method. participating policy (dividends will be used to build up the cash value of the policy). D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. Collections on Tuition and Fees Receivable totaled$222,600. This next method is for those with just one wage earner in the family. E. It is permanent life insurance. 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. Multiply the number of years until the youngest child reaches 18 by $10,000. 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. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. D. Term life insurance plans. Allowed whole life insurance policies to be sold. You have a spouse, two kids, a dog and a mortgage - a typical family. $13,000 B. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. 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. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. A. A deferred annuity allows an individual to receive payments from an annuity at some future date. Sum Assured fixed at Rs. . Limited installment payment. C. Decreasing term. Which of the following is a charge you will pay when you purchase a variable annuity? B. Mortality and expense risk charge. A. Certificates of deposit. 36. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Using the easy The investment risk in investment portfolio is borne by the policyholder. method for him to use to calculate his insurance needs? An immediate annuity allows an individual to receive payments from an annuity beginning at once. D. Your premium will not increase when you renew it. 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. Your premium will not increase when you renew it. D. The policy features. 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. \quad\text{Unearned revenue}&&\text{900}\\ $50,000 C. $80,000 D. $100,000 E. $180,000 B. A. B. E. Child. D. Life income option. A. Now, if it's just you and your spouse, you can use the DINK method. In this episode, John continues his series on the. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. E. Weiss Research. 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. 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. The recommendation is to have seven to ten years of life insurance. We look forward to speaking with you. B. Bens beneficiaries. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D This method has you multiplying your annual gross income by 70% and then multiplying that by 7. In this case, 18 years. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ 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? Carton is 0.75 m by 0.6 m by 0.8 m. 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! \text{Net assets:}\\ 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Student services 37,700 The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Which of the following life insurance policies should she apply for? What kind of policy is he planning to purchase? E. All of these. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. 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. He has since died. nonworking spouse whose youngest child is 5 years old? Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. The premium shall be adjusted on the due date even if it has been received in advance. Straight life. Your rates will vary based on your unique circumstances, just as they would if you were single. Of course, it would be a tragedy were something to happen to your spouse. E. A policy whose coverage stops after a period of time. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Were your family to lose that, you lose all of that labor. A. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. The Tax Reform Act of 1986 A. Solved Using the "nonworking" spouse method, what should be - Chegg A. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. This method is called the non-working spouse method. Which of the following policies should she buy? Jeff Willis has five kids and more debt than the, average family. 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. 42. B. the easy method to determine how much life insurance you should carry. I feel like its a lifeline. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. Suppose that yours is a typical family. 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. Which of the following statements is incorrect? Look through financial records. Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. Insurance Need: . 45. How much storage space is required? Surrender charge. All other trademarks and copyrights are the property of their respective owners. 1. \quad\text{Deposits held in custody for others}&&\text{700}\\ Protect the people who depend on the insured from financial losses caused by his or her death. 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. A. You heard about several methods you can use to calculate your life insurance needs. PPTX Life Insurance Chapter Fourteen - University of Arkansas You own a home with a mortgage of $110,000, and 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. 60. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. 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. You are the wage earner in a typical family, with $55,000 gross annual income. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. Variety of Fund Options and Portfolio Management Strategies, Loyalty Additions + Wealth Boosters + Return of Mortality Charges, Optional In-built covers to enhance coverage, Policy Term of 1 year or less than 1 year. 25% C. 50% D. 75% E. 95%, 32. GST On Life Insurance Tim and Allison are married and have two children, ages 3 and 6. Which of the following statements is correct? The timing for payments of a variable annuity are variable. Chapter 10 true and false Flashcards | Quizlet The sooner a person is likely to die, the lower the premiums he or she will pay. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. All of the following are major rating agencies for insurance except A. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. Wendy has had a life insurance policy for five years. determine the minimum amount of life insurance you should carry. Question: Problem 12-10 Using the "Nonworking" Spouse Method to Determine Life Insurance Needs [LO12-2] Tim and Allison are married and have two children, ages 16 and 17 . Term C. Credit life D. Endowment life E. Adjustable life, 53. Plus, get practice tests, quizzes, and personalized coaching to help you 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. 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.
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