D. Life income option. Can non-working spouses qualify for a life insurance? A. Waiver of premium disability benefit B. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 nonworking spouse whose youngest child is 5 years old? 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. What method. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. If you have a conversion term policy, A. 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. But from a financial perspective, it does not have to be a crisisif you have good planning. Ag;sE2/yNNF;eF]!hiV^r^l PK ! D. Spend money. Which method are they using to determine their life insurance needs? A deferred annuity allows an individual to receive payments from an annuity at some future date. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? An individual can take out a loan on his or her term policy. Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. 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. E. Single year term. 200 lessons. D. Limited payment. 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. E. Made all annuities tax free. So to recap, you can not take out a life insurance policy on someone without their knowledge, and no one should be able to do it to you. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. What is Life Insurance? Investors in the Scheme are not being offered any guaranteed / assured returns. C. Temporary insurance. A. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. A. Read this lesson to learn what methods you can use to calculate your requirements. D. Household with children. I highly recommend you use this site! For a non-Working Spouse. What is the most important part of an insurance agents job? What is their total insurance need using the DINK method? E. Weiss Research. Holding Period Return (HPR) Formula & Examples | What is HPR? C. 10 days. T&C Apply. 3 days. What kind of policy would you want to purchase? Estimate how much life insurance Tim and Allison should carry to cover Allison. Purchasing a life insurance policy is a basic and inexpensive task. It equals the cost of replacing the property. Which of the following riders should he consider? 401(k) plans. Which of the following products allows an individual to receive payments beginning now? lessons in math, English, science, history, and more. What is the cost of living in California? Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. . \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ Fixed annuity B. is =1.25\sigma = 1.25=1.25. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. Life insurance companies issue a lot of paperwork. 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. DINK stands for double income, no kids. The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. Please consult your independent tax advisor for details. 26. B. The timing for payments of a variable annuity are variable. A. Were your family to lose that, you lose all of that labor. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. nonworking spouse whose youngest child is 5 years old? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. 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. 1. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ A. participating policy (dividends will be used to build up the cash value of the policy). a. a way of calculating an inventory's value 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. 24. What kind of policy would she want to purchase? 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 sample chart that follows, find the column showing the age of the nonworking spouse 2. The question is, how big are yours? \textbf{June 30, 2019}\\ You'll get a detailed solution from a subject matter expert that helps you learn core concepts. B. Marianne and Roger are in good health and have reasonably secure careers. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. A. Ben. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. 40. When can I switch from original Medicare to an Advantage plan? Home Flashcards Chapter 10 Personal Finance. 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. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} method, what should be your need for life insurance? 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. E. It is permanent life insurance. 5% B. \quad\text{Unearned revenue}&&\text{900}\\ B. 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. Life insurance is a wise purchase of all individuals. A. 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. It also collected $820 of Pledges Receivable that were unrestricted. $343,000 C. $490,000 D. $700,000 E. $750,000, 86. When you're ready to purchase life insurance, you'll need to decide what coverage amount you need so that all your financial obligations and needs are met upon your death. D. Fund expense. So your life insurance requirement is 15 $10,000 = $150,000. Which of the following households most likely has the greatest need for life insurance? Using the nonworking spouse method, what should be the life The ending balance in Accounts Payable and Accrued Liabilities was$1,935. Benefits of Life Insurance Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. Estimate how much life insurance Tim and Allison should carry to cover Allison. Which method are they using to determine their life insurance needs? B. Dun & Bradstreet. Which of the following is a charge you will pay when you purchase a variable annuity? This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. 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. B. What. old? Group life B. Variable life C. Universal life D. Adjustable life E. Decreasing term life. You policy will continue for one year. Whole life. D. Life income option. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Certificates of deposit. Whole life. 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. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. You have no other debt. Each earns $45,000 annually. E. An insurance company will calculate the annual amounts to pay each person for an annuity. 25,00,000 which will remain same throughout the Policy Term. the near future. ^Individual death claims settled and reported in public disclosures for FY 2021-22. 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? Using the DINK method, what should be your need for life insurance? Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. \textbf{(amounts in thousands)}\\ \text{Prepaid assets}&&\text{1,364}\\ 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. The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. She was recently divorced. All of the following are major rating agencies for insurance except A. Can you get life insurance on a spouse? 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. Easy method C. DINK method D. Family need E. Soccer mom 95. Fixed annuity B. This method is used only to calculate child care needs, not the total financial needs of the family. NOT FDIC INSURED. \textbf{Liabilities and Net Assets}\\ Judy and James have a 4-year-old child. You can convert your policy to a permanent type at the end of the term. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. C. Retired couple with a pension. The most common settlement option for a life insurance program is the lump-sum payment. 68. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Term C. Credit life D. Endowment life E. Adjustable life, 53. 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. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. This is a very common type of policy taken by homeowners who want to support their children financially. Life Insurance Underwriting Use the multiple of income method to \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 70. B. The college received cash contributions without donor restrictions of$2,080, pledges to be collected in 2021 of $550, and cash contributions to the endowments of$335. Allison is a "nonworking" spouse who devotes all of her time to household activities. Another name for temporary life insurance is A. To unlock this lesson you must be a Study.com Member. Enrolling in a course lets you earn progress by passing quizzes and exams. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Sum Assured as chosen by the Working Spouse under the Plan. D. You can convert your policy to a permanent type at the end of the term. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. D. Her parents. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. $40,000 B. With the right term insurance policy in place, stay prepared for any adversity. Megan wants to purchase a life insurance policy that will allow her to invest in stock. 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. Which of the following life insurance policies should she apply for? B. A. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. 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} Another name for a straight term policy is A. Renewable term. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). If their youngest child is 5 years old, how much do they need? The last thing to realize is that calculating your life insurance needs can be tricky. You may need to change your coverage amounts when this happens. Term insurance B. Now, you take this number and subtract your available assets from this number. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. Buying from professionally qualified representatives C. Ignoring the reputations of local agencies D. Working with a representative who will help you select the proper kind of protection within your financial boundaries E. Asking family or friends for recommendations to choose an insurance company. 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. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. The income replacement approach is a method of determining the amount of life insurance you should purchase. Everyone is impacted by these 5 problems. 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? 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. Which of the following policies should she buy? With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. 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. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. 73. You must pay interest on any loans. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. Look through financial records. Allowed whole life insurance policies to be sold. 76. True. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. Features of Life Insurance Which of the following is NOT temporary insurance? Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. The family needs approach requires you to purchase enough life insurance to allow your family to meet its various expenses in the event of your death. to work after your death. 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. Group life C. Limited life D. Universal life E. Variable life, 52. Which statement is correct regarding mutual life. - 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. The policy features. Of course, it would be a tragedy were something to happen to your spouse. This method 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. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. b. the number of each item you have in stock C. Your premium will not increase because your policy is renewable. 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. The premiums & funds are subject to certain charges related to the fund or to the premium paid. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. Using the DINK method, what should be your need for life insurance? Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. A. A. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). D. Allowed annuities to be purchased for individual retirement accounts. The premium shall be adjusted on the due date even if it has been received in advance. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. C. Administrative fee. Wendy has had a life insurance policy for five years. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. Fred bought life insurance five years ago. Group life C. Limited life D. Universal life E. Variable life, 49. We are living in times of uncertainty. Using the easy 82. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] For example, say you have a remaining mortgage of $30,000, a credit card balance of $11,000, and a personal loan of $5,000. 37. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ A. Is equipment floater the same as inland marine? Using the DINK method, what should be your need for life insurance? Multiply the number of years until the youngest child reaches 18 by $10,000. Create your account, 18 chapters | \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Best Investment Options in India Its like a teacher waved a magic wand and did the work for me. E. All of these affect the price. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). 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. The Wealth Curve Talk with John L. Smallwood. Which of the following is NOT a feature of whole life insurance? All rights reserved. 27. D. It builds cash value. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. E. None of these is correct. The recommendation is to have seven to ten years of life insurance. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 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. C. The policy will return all premiums if you survive to the end of the policy. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. A. Experts are tested by Chegg as specialists in their subject area. The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs.10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. This last method is called the family need method. \text{Liabilities:}\\ c. the charge per 100 pounds to ship goods by truck you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card You'll get a detailed solution from a subject matter expert that helps you learn core concepts. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. 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. Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. E. Child. If you want to purchase term insurance, you will receive all of the following except A. 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. $12,000 in 15 years.
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