Which of the following is NOT temporary insurance? Quickly and professionally. But from a financial perspective, it does not have to be a crisisif you have good planning. Which of the following riders provided an additional benefit for his heirs? This is also the most thorough method. Chapter 10 Personal Finance - Subjecto.com He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. E. Made all annuities tax free. \textbf{June 30, 2019}\\ 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 STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} 73. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. Allison is a "nonworking" spouse who devotes all of her time to household activities. Straight life C. Ordinary life D. Term life E. Cash value life. 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. We look forward to speaking with you. the income provider's salary. D. Life income option. A. How to Estimate Life Insurance Requirements - Study.com Life Insurance Underwriting D. Insurer. Purchasing a life insurance policy is a basic and inexpensive task. $4,000. C. 10 days. There are many situations to consider, and the methods you just heard about may or may not fit your needs. 80. See Answer A deferred annuity allows an individual to receive payments from a life insurance policy immediately. 97. What is non working spouse method? - InsuredAndMore.com 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 . Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. What is your life insurance need using the DINK method? A. 24. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. Instruction$86,100 B. A. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. 76. T&C apply. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Estimating Life Insurance Needs Using the DINK Method You Course Hero is not sponsored or endorsed by any college or university. Which of the following provisions should she take action on? C. A life insurance policy allows an individual to receive payments from an annuity at once. This website helped me pass! D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. What method would probably be the best. A. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. E. None of these. Is equipment floater the same as inland marine? Pay off a mortgage. This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. How to estimate life insurance requirements for a non working spouse? Further, you estimate that your funeral will cost $6,000. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. The premium shall be adjusted on the due date even if it has been received in advance. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Benefits of Life Insurance 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. Table lamp. Life Insurance When can I switch from original Medicare to an Advantage plan? Home Flashcards Chapter 10 Personal Finance. Of course, it would be a tragedy were something to happen to your spouse. Your needs will also change over time, so your life insurance needs may also change over time. E. Proceeds left with the company. 59. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. Collections on Tuition and Fees Receivable totaled$222,600. B. B. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Futures Contract in Finance Purpose & Examples | What Are Futures? Read this lesson to learn what methods you can use to calculate your requirements. Claim Settlement Ratio C. The mortality rate it expects among its policy holders. If you are looking for life insurance, you probably realize the need to secure your family financially, but if you are married, your safety net is probably incomplete unless your spouse also has an adequate life insurance coverage to take care of your familys overall financial needs. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. Which of the following is NOT important when buying life insurance? 70. E. Proceeds left with the company. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. C. It is more expensive than term insurance. $140,000 B. C. Final life payment. B. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ Shaan and Anita are married and have two children, ages 4 and 7. D. Life income option. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = This is a very common type of policy taken by homeowners who want to support their children financially. They have determined that their annual income is $70,000 and their net worth is now $150,000. is your life insurance need based on the easy method? Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. DESIGNED BY: INTERSOFT ASSOCIATES. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. \end{array} Use Exhibit 1-B. 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. Look through financial records. Sum Assured as chosen by the Working Spouse under the Plan. 401(k) plans. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 1. A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Fred bought life insurance five years ago. 71. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. A. You have no plans to increase the size of your family in 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. 4.Tax benefit of Rs. \textbf{Statement of Financial Position}\\ 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. If you want to purchase term insurance, you will receive all of the following except A. Certificates of deposit. You can convert your policy from permanent to term at any time. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ C. You can convert your term policy to a permanent policy. The timing for payments of a variable annuity are variable. 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. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. 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. \text{Prepaid assets}&&\text{1,364}\\ Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Sum Assured as chosen by the Working Spouse under the Plan. B. Answered: Shaan and Anita are married and have | bartleby lessons in math, English, science, history, and more. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Annuity Formula, Calculation & Examples | What is an Annuity? ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm B. Get unlimited access to over 88,000 lessons. d. 28. E. Convince you to buy the policy that will pay her the highest commission. Your annual premium is $1,000. C. Her contingent beneficiaries. 44. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. E. All of these. to work after your death. The process standard deviaton Jumping the Wealth Curve with Edward E. Bao Jr. Ask a Family Member's Financial Advisor. D. It builds cash value. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI As a member, you'll also get unlimited access to over 88,000 Ask to set up a Wealth Curve conversation. 65. For a non-Working Spouse. To unlock this lesson you must be a Study.com Member. What kind of policy would she want to purchase? e. a place in which to keep products until they are needed 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. Each earns $45,000 annually. You estimate that funeral expenses will be $5,000. Donald and Charlene are married and do not have any children. 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? Of the following, which one is the most positive feature of whole life insurance? B. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card Which method are they using to determine their life insurance needs? Maximum amount that can be claimed as deduction for education loan, How to File ITR for Income under 2.5 Lakh, How to Reduce Tax Liability with Term Insurance, Know the Tax Benefit on Saving for Retirement, Need for a Life Insurance for the Non-Working Spouse, Making claim settlement easy for your beneficiaries, How has the occurrence of covid-19 affected insurance in INDIA, Factors That Affect Life Insurance Premiums, Reasons for Life Insurance Claim Rejection, Unclaimed Amount Movement To-senior Citizens Welfare Fund. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. GST On Life Insurance A. 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. \textbf{STEINER COLLEGE}\\ 66. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. 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. How much storage space is required? nonworking spouse whose youngest child is 5 years old? C. Your premium will not increase because your policy is renewable. We are living in times of uncertainty. Call the State Commissioner's Office for your State. Allowed whole life insurance policies to be sold. Find the factor on the chart where the nonworking spouse's age intersects with the working spouse's income from the column on the left 3. Limited installment payment. The sooner a person is likely to die, the lower the premiums he or she will pay. An individual can take out a loan on his or her term policy. Insurance Need: ? Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. - 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? C. Convertible term. 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. A. Waiver of premium disability benefit B. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Allison is a "nonworking" spouse who devotes all of her time to household activities. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. 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. She was recently divorced. For example, say. B. 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. Tim and Allison are married and have two children, ages 3 and 6. Now, you take this number and subtract your available assets from this number. D. You can convert your policy to a permanent type at the end of the term. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. Under this plan option, a Monthly Survival Income shall be payable at the beginning of each month, starting from the Policy Anniversary coinciding with or following the Life Assured attaining age 60 years (last birthday) which shall continue till the end of the Policy Term or the death of the Life Assured whichever is earlier. \end{array} It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. I feel like its a lifeline. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. 48. 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. The question is, how big are yours? Which of the following statements is correct? A. Waiver of premium disability benefit B. The "Family Need" Method. T&C Apply. Academic support 23,300 D. The beneficiary can borrow any amount up to the total benefit. The first is the easy method. C. The policy will return all premiums if you survive to the end of the policy. the easy method to determine how much life insurance you should carry. Adult child living with parents. Allison is a "nonworking" spouse who devotes all of her time to household activities. . Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Tim and Allison are married and have two children, ages 4 and 7. You policy will continue for one year. What will be the surrender value of LIC policy after 5 years? Easy method C. DINK method D. Family need E. Soccer mom 95. C. Individual retirement accounts (IRAs). Which of the following statements is incorrect? \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ The maturity benefit is Rs. Term Insurance For Non-Working Spouse In India - Policybazaar They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Insurance needed. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. 3 days. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. 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. TERMS OF SERVICE Limited installment payment. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. E. None of these is correct. 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. E. It is permanent life insurance. The cash value of the policy is expected to be Let us have a look at your work and suggest how to improve it! Which of the following policies would meet her needs? Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. You have a gross annual income of $62,000. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount.