Variable life C. Universal life D. Adjustable life E. Decreasing term life. Insurance Premium Were your family to lose that, you lose all of that labor. 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. D. The beneficiary can borrow any amount up to the total benefit. Fell free get in touch with us via phone or send us a message. Which of the following policies would meet her needs? Multiply the income . There are many situations to consider, and the methods you just heard about may or may not fit your needs. Your spouse expects to continue to work after your death. 76. The sooner a person is likely to die, the lower the premiums he or she will pay. C. Pay for a vacation. The investment risk in investment portfolio is borne by the policyholder. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Collect premiums for the insurance contract. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. You own a home with a mortgage of $110,000, and 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. 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. 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. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. Pay off a mortgage. They plan to purchase life insurance using this formula: Current income 7 70%. Further, you estimate that your funeral will cost $6,000. Of course, it would be a tragedy were something to happen to your spouse. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. The last thing to realize is that calculating your life insurance needs can be tricky. You policy will continue for one year. You want to purchase a life insurance policy that pays a dividend. False. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. T&C Apply. E. Made all annuities tax free. nonworking spouse whose youngest child is 5 years old? the near future. A. E. Convince you to buy the policy that will pay her the highest commission. nonworking spouse whose youngest child is 6 years old? Institutional support 28,500. 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. d. 28. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, 35. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. A process has specification limits of LSL 5 540 and USL 5 550. Which of the following policies should she buy? Your premium will not increase when you renew it. What is the amount of life insurance they should carry using the easy method? A. Adjustable life B. Using the nonworking spouse method, what should be the life It provides both a death benefit and a savings component. 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. Its like a teacher waved a magic wand and did the work for me. E. No interest will accumulate for any loans related to life insurance. If we really see it through the lens, probably the Non-working Spouse, as the life insurance industry calls it, has more of the work to do without getting paid as much as its office-going counterpart. The return on its investments. Which of the following riders provided an additional benefit for his heirs? \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ D. It builds cash value. Features of Life Insurance Now, you take this number and subtract your available assets from this number. 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. We look forward to speaking with you. D. You must pay interest on any outstanding policy loans. Estimate your total 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Futures Contract in Finance Purpose & Examples | What Are Futures? Shaan and Anita are married and have two children, ages 4 and 7. \text{Short-term investments}&&\text{7,666}\\ Sell you the highest level of coverage available. A. 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. Estimate how much life insurance Shaan and Anita should carry. Amy has worked with students at all levels from those with special needs to those that are gifted. Get unlimited access to over 88,000 lessons. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. Allison is a "nonworking" spouse who devotes all of her time to household activities. Focus on Personal Finance: Online Textbook Help, Life Insurance Companies: Definition & Types, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, How to Estimate Life Insurance Requirements. A. 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. E. Credit life. C. Convertible term. D. Life income option. 46. Quickly and professionally. If the policy exists, you can ask if you're a beneficiary. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. 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. Another name for a straight term policy is A. Renewable term. C. Her contingent beneficiaries. B. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Group life C. Limited life D. Universal life E. Variable life, 49. 37. You can get your paper edited to read like this. This is a very common type of policy taken by homeowners who want to support their children financially. If you want to purchase term insurance, you will receive all of the following except A. D. Term life insurance plans. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ method, what should be your need for life insurance? Riders in Insurance \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 43. Suppose that yours is a typical family. 58. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. Limited installment payment. Your annual income is $100,000. Estimate how much life insurance Tim and Allison should carry to cover Allison. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. nonworking spouse whose youngest child is 5 years old? What will be the surrender value of LIC policy after 5 years? Your spouse expects to continue to work after your death. Which of the following is the process of getting oxygen from the environment to the tissues of the body? Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. This is a method that has you adding half of all your debts plus funeral expenses. A deferred annuity allows an individual to receive payments from an annuity at some future date. What kind of policy is he planning to purchase? I feel like its a lifeline. Allison is a "nonworking" spouse who devotes all of her time to household activities. 38. Estimate how much life insurance Tim and Allison should carry to cover Allison. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. A. In most cases in India, the non-working spouse is a woman and it may be unimaginable to account for the financial implications in case of their absence, keep aside the emotional damage. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects and returns. 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. Which of the following provisions will affect the amount of money his beneficiaries will receive? Using the nonworking spouse method, what should be the life insurance needs for a The total debts of you and your spouse include the following: mortgage, $200,000; auto loan, $16,000; credit card balance, $2,000; and personal debts of $4,000. The income replacement approach is a method of determining the amount of life insurance you should purchase. Is equipment floater the same as inland marine? Protect the people who depend on the insured from financial losses caused by his or her death. D. Term. 27. What are the stages of the General Adaptation Syndrome (GAS)? Which of the following riders should she consider? Course Hero is not sponsored or endorsed by any college or university. Buying from a financially strong company B. Which of the following is a poor choice for the amount of protection offered for an individual? 24. \quad\text{Deposits held in custody for others}&&\text{700}\\ Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid. method, what should be your need for life insurance? But from a financial perspective, it does not have to be a crisisif you have good planning. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. What kind of policy would she want to purchase? Endowment Plans She was recently divorced. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. A. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. A. What. Home Flashcards Chapter 10 Personal Finance. 40. A.

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