4.Tax benefit of Rs. A. Waiver of premium disability benefit B. Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. B. TERMS OF SERVICE It equals the cost of replacing the property. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. The income replacement approach is a method of determining the amount of life insurance you should purchase. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. $30,000 B. C. You can convert your term policy to a permanent policy. 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. B. For a non-Working Spouse. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. D. Help you select the proper kind of protection within your financial boundaries. Easy method C. DINK method D. Family need E. Soccer mom 95. It also collected $820 of Pledges Receivable that were unrestricted. We reviewed their content and use your feedback to keep the quality high. Can you get life insurance on a spouse? $18,000 C. $50,000 D. $130,000 E. $180,000, 84. 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. $50,000 C. $80,000 D. $100,000 E. $180,000 B. Each of you What kind of policy is he planning to purchase? c. the charge per 100 pounds to ship goods by truck Sum Assured fixed at Rs. A. What is Life Insurance? Diffusion Let us complete them for you. 72. A. Features of Life Insurance D. The beneficiary can borrow any amount up to the total benefit. A. How long is the grace period for health insurance policies with monthly due premiums? The "Family Need" Method. \quad\text{Deposits held in custody for others}&&\text{700}\\ This is a method that has you adding half of all your debts plus funeral expenses. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ Jeff and Erica have two children. C. It is more expensive than term insurance. \text{Tuition and fees receivable (net of doubtful accounts of \$12)}&&\text{230}\\ the near future. Investors in the Scheme are not being offered any guaranteed / assured returns. 71. Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. 25,00,000 which will remain same throughout the Policy Term. A. You have a gross annual income of $62,000. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. DINK stands for double income, no kids. C. Retired couple with a pension. 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? Let us have a look at your work and suggest how to improve it! What is non working spouse method? - InsuredAndMore.com 27. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? What. How much storage space is required? Life Insurance E. Credit life. Which of the following policies should she buy? You own a home with a mortgage of $110,000, and C. The policy will return all premiums if you survive to the end of the policy. All guarantees are based on the continued claims paying ability of the issuing company. A. Waiver of premium disability benefit B. The Tax Reform Act of 1986 A. E. 60 days. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} A. Waiver of premium disability benefit B. Non-Working Spouse Method. Allison is a "nonworking" spouse who devotes all of her time to household activities. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Insurance Need: ? Whole life. e. a place in which to keep products until they are needed \end{array} The recommendation is to have seven to ten years of life insurance. Now, you take this number and subtract your available assets from this number. Group life B. What are the four methods of determining life insurance needs? 5 days. 45. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. 93. What is your life insurance need using the DINK method? $140,000 B. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. Solved Problem 12-10 Using the "Nonworking" Spouse Method to | Chegg.com 700 cartons to be stored. E. Your premium will be higher than a whole life policy premium. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. 79. E. A policy whose coverage stops after a period of time. Estimate how much life insurance Tim and Allison should carry. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A. The death benefit will be increased by the amount of an outstanding policy loan. C. Your premium will be the same for the duration of your policy. Pay off a mortgage. The insurer may tell you, or it may ask you to submit a form reporting the death. d. 28. B. Or, you can call us at (800) 797-1000. A. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? 2003-2023 Chegg Inc. All rights reserved. But from a financial perspective, it does not have to be a crisisif you have good planning. The investment risk in investment portfolio is borne by the policyholder. This is a method that has you adding half of all your debts plus funeral expenses. B. Multiyear level term. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. It will have a lower coverage amount and a waiting period (usually 2 year). A process has specification limits of LSL 5 540 and USL 5 550. B. The human-life approach is a method of calculating how much life insurance is needed for a family that is based upon their financial loss when the insured person in the family passes away. This problem has been solved! 36. b. the number of each item you have in stock C. Convertible term. Buying from a financially strong company B. D. Household with children. Yes. Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using An immediate annuity allows an individual to receive payments from an annuity beginning at once. 48. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. B. Such advance premium, if any, paid by the Policyholder shall not carry any interest. Solved Problem 12-10 Using the "Nonworking" Spouse Method to | Chegg.com Its like a teacher waved a magic wand and did the work for me. method for him to use to calculate his insurance needs? Term insurance B. Lastly, it allows you to keep your future obligations: college, paying off debts, weddings, bar mitzvahs and bat mitzvahs, sweet sixteens, and all the other things that you want to do for your kids. 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. D. Decreasing term. NOT BANK GUARANTEED. Do both you and your spouse need life insurance? $13,000 B. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. Fell free get in touch with us via phone or send us a message. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI 37. A. Estimate how much life insurance Shaan and Anita should carry. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Fixed annuity B. Jeff Willis has five kids and more debt than the, average family. The average cost of life insurance is $27 a month. D. Spend money. E. Proceeds left with the company. What kind of policy would you want to purchase? What is the cost of living in California? $343,000 C. $490,000 D. $700,000 E. $750,000, 86. C. Tell you why her product is better than the competitors. The last thing to realize is that calculating your life insurance needs can be tricky. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 35. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! Tim and Allison are married and have two children, ages 4 and 7. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o For example, say. This gives you seven years of wages at 70%. Benefits of Life Insurance Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Using time value of money and assuming you could invest your 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. 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. C. Moodys. A. E. All of these affect the price. Which of the following life insurance policies should she apply for? Each earns $45,000 annually. This last method is called the family need method. ^Individual death claims settled and reported in public disclosures for FY 2021-22. Goods & Services Tax will be charged on the premium amount. A. The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. She was recently divorced. 97. A. Waiver of premium disability benefit B. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. \textbf{STEINER COLLEGE}\\ 58. Enrolling in a course lets you earn progress by passing quizzes and exams. If you have a multiyear level term policy, A. The insurance industry rule of thumb that a typical, family will need 70% of salary for seven years in order to, adjust for the financial consequences of a wage-earner's, death is known as which of the following estimation. You can convert your policy to a permanent type at the end of the term. Group life C. Limited life D. Universal life E. Variable life, 50. Your premium may increase if you continue it for another term because you will be older. D. Life income option. 96. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Insurance needed. The Wealth Curve Talk with John L. Smallwood. Can non-working spouses qualify for a life insurance? 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. Preserved the tax advantage of annuities but curtailed deductions for IRAs. E. Weiss Research. A. We want to help you with that. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. 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. A. An error occurred trying to load this video. Carton is 0.75 m by 0.6 m by 0.8 m. \textbf{June 30, 2019}\\ Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. 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. nonworking spouse whose youngest child is 5 years old? The second is the DINK method. Create your account, 18 chapters | D. Life income option. E. The policy requires that you pay a specified premium each year for the rest of your life. Contract. C. The mortality rate it expects among its policy holders. 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. A. Adjustable life B. insurance needs for a family whose youngest child is 5 years Shaan and Anita are married and have two children, ages 4 and 7. So your life insurance requirement is 15 $10,000 = $150,000. 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. Time Value of Money Formula & Examples | What is Time Value of Money? Your spouse expects to continue Which statement is correct regarding mutual life. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. Annuity Formula, Calculation & Examples | What is an Annuity?