A. Ask a Family Member's Financial Advisor. A process has specification limits of LSL 5 540 and USL 5 550. B. Surrender charge. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 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. refunds of$11,200 were given. Sum Assured as chosen by the Working Spouse under the Plan. B. Estimate how much life insurance Tim and Allison should carry. determine the minimum amount of life insurance you should carry. D. Decreasing term. C. The policy will return all premiums if you survive to the end of the policy. $40,000 B. Your annual premium is $1,000. $13,000 B. . 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Group life C. Limited life D. Universal life E. Variable life, 52. They have determined that their annual income is $70,000 and their net worth is now $150,000. Allison is a "nonworking" spouse who devotes all of her time to household activities. 68. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Before you purchase, be sure to talk to your financial professional about the annuitys features, benefits, and fees and whether the annuity is appropriate for you, based on your financial situation and objectives. 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? Georgia was supposed to pay her premium by the 15th of the month. 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. 41. Suppose that yours is a typical family. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. Instruction$86,100 This gives you 7 years of wages at 70%. E. Convince you to buy the policy that will pay her the highest commission. Most participating policies are sold by: 102. The first is the easy method. Which of the following is NOT a feature of whole life insurance? Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. Certificates of deposit. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. 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. A. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. \quad\text{Deposits held in custody for others}&&\text{700}\\ Diffusion Let us complete them for you. 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. The companys cost of doing business. Multiply the income . Megan wants to purchase a life insurance policy that will allow her to invest in stock. B. Create your account, 18 chapters | Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? You can get your paper edited to read like this. D. 30 days. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. Collections on Tuition and Fees Receivable totaled$222,600. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Further, you estimate that your funeral will cost $6,000. 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. 37. Further, you estimate that your funeral will cost $6,000. 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. Plus, get practice tests, quizzes, and personalized coaching to help you Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. E. None of these. This next method is for those with just one wage earner in the family. E. Your premium will be higher than a whole life policy premium. Endowment Plans It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). C. Final life payment. Quickly and professionally. A. But from a financial perspective, it does not have to be a crisisif you have good planning. 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. A. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Each plans to continue to work after the other one dies. Fred bought life insurance five years ago. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. Factors That Affect Life Insurance Premiums Can someone be denied homeowners insurance? One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! C. It is more expensive than term insurance. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. Yes! 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. D. Life income option. Let's review. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. Explanation: Generally when there is only one working spouse in a household and you want to get insurance to cover child care needs, you can use the non-working spouse method which is very simple to calculate but will also carry a very low amount. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. GST On Life Insurance Is equipment floater the same as inland marine? The question is, how big are yours? \textbf{June 30, 2019}\\ In this case, 18 years. Course Hero is not sponsored or endorsed by any college or university. Your spouse expects to continue to work after your death. the near future. \text{Liabilities:}\\ Group life B. Your needs will also change over time, so your life insurance needs may also change over time. d. 28. Welcome to the Wealth Curve Talk Podcast. Estimate how much life insurance Tim and Allison should carry to cover Allison. B. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. B. Amy bought a life insurance policy and named Ben as her beneficiary. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. B. E. Whole life insurance plans. Using the nonworking spouse method, what should be the life Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. What kind of policy would she want to purchase? B. Dun & Bradstreet. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? Which of the following statements is incorrect? Collect premiums for the insurance contract. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. You have a spouse, two kids, a dog and a mortgage - a typical family. Can non-working spouses qualify for a life insurance? C. Individual retirement accounts (IRAs). Using the DINK method, what should be your need for life insurance? Your rates will vary based on your unique circumstances, just as they would if you were single. 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. The settlement option that pays the life insurance proceeds in equal periodic payments for a specified number of years after your death is called A. Lump-sum payment. Protect the people who depend on the insured from financial losses caused by his or her death. Which method are they using to determine their life insurance needs? Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. They plan to purchase life insurance using this formula: (18 Youngest childs age) $10,000. Use the multiple of income method to Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. $50,000 C. $80,000 D. $100,000 E. $180,000 B. Riders in Insurance \text{Prepaid assets}&&\text{1,364}\\ When it comes to purchasing life insurance, you need to make sure you are purchasing enough coverage to cover all your financial needs upon your death. A person who is named to receive the benefits from an insurance policy is a(n) A. C. Temporary insurance. Jumping the Wealth Curve with Edward E. Bao Jr. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Life expectancy for men is longer than that for women. Which statement is correct regarding mutual life. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. 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. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Now, you take this number and subtract your available assets from this number. method for him to use to calculate his insurance needs? This is a very common type of policy taken by homeowners who want to support their children financially. Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. Academic support 23,300 Using the easy 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. Life Insurance Underwriting D. The beneficiary can borrow any amount up to the total benefit. PK ! Judy and James have a 4-year-old child. 24. 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. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. C. 10 days. a. a way of calculating an inventory's value B. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. An individual can take out a loan on his or her term policy. \quad\text{Unearned revenue}&&\text{900}\\ If you have a conversion term policy, A. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. E. All of these. Which of the following statements is correct? 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. E. Weiss Research. Money Market | Graph, Demand Curve & Model, Rate of Return Formula & Examples| How to Calculate the Rate of Return, Bank Liabilities & Assets | Overview, Differences & Examples, How to Choose a Career: Guidance Counseling, Principles of Macroeconomics: Certificate Program, Principles of Microeconomics Syllabus Resource & Lesson Plans, AEPA Economics (AZ035): Practice & Study Guide, Holt McDougal Economics - Concepts and Choices: Online Textbook Help, DSST Personal Finance: Study Guide & Test Prep, Hawaii Real Estate Salesperson Exam: Study Guide & Practice, CPA Subtest III - Financial Accounting & Reporting (FAR): Study Guide & Practice, Glencoe Earth Science: Online Textbook Help, Holt McDougal Algebra 2: Online Textbook Help, McDougal Littell Algebra 2: Online Textbook Help, Create an account to start this course today. Insurance Need: . Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Using the nonworking spouse method, what should be the life Sell you the highest level of coverage available. This last method is called the family need method. A. How much storage space is required? Now, if it's just you and your spouse, you can use the DINK method. Which of the following provisions should she take action on?