Group life C. Limited life D. Universal life E. Variable life, 51. . Whole life. D. Decreasing term. Jeff Willis has five kids and more debt than the, average family. Allison is a "nonworking" spouse who devotes all of her time to household activities. 2003-2023 Chegg Inc. All rights reserved. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited. C. Her contingent beneficiaries. 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. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. If their youngest child is 5 years old, how much do they need? This problem has been solved! When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? AssetsCashandcashequivalentsShort-terminvestmentsTuitionandfeesreceivable(netofdoubtfulaccountsof$12)Pledgesreceivable(netofdoubtfulaccountsof$280)PrepaidassetsProperty,plan,andequipment(netofaccumulateddepreciationof$104,240)Investments(atfairvalue,costof$162,000)TotalassetsLiabilitiesandNetAssetsLiabilities:AccountspayableandaccruedliabilitiesDepositsheldincustodyforothersUnearnedrevenueBondspayableTotalliabilitiesNetassets:WithoutdonorrestrictionsWithdonorrestrictionsTotalnetassetsTotalliabilitiesandnetassets$104,000229,940$7347,6662305,8721,364281,404158,400$455,670$21,13070090099,000127,730333,940$455,670. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. What is the most important part of an insurance agents job? Variable life C. Universal life D. Adjustable life E. Decreasing term life. Can non-working spouses qualify for a life insurance? 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. Each plans to continue to work after the other one dies. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ This website helped me pass! 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. 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. 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. 101. \text{Net assets:}\\ How much storage space is required? Annuity Formula, Calculation & Examples | What is an Annuity? B. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. Here's how to calculate the estimated life insurance need: 1. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. 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. Endowment Plans Your annual income is $60,000. Collect premiums for the insurance contract. The Policy will terminate after payment of this benefit. Single adult living alone. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Of the following, which one is the most positive feature of whole life insurance? What. A. Waiver of premium disability benefit B. Chapter 10 True False Flashcards | Quizlet E. Whole life insurance plans. 25,00,000 which will remain same throughout the Policy Term. The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets, Mutual life insurance companies specialize in the sale of nonparticipating policies, Another name for straight term is renewable return-of-premium term, Decreasing term pays less to the beneficiary as time passes, Return-of-Premium term pays out all premiums plus interest to a beneficiary. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. 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. 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. Factors That Affect Life Insurance Premiums B. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ B. A. A. Waiver of premium disability benefit B. It also collected $820 of Pledges Receivable that were unrestricted. When using the rule of 70, the number 70 is used in the calculation. Straight life C. Ordinary life D. Term life E. Cash value life. Further, you estimate that your funeral will cost $6,000. Using the DINK method, what should be your need for life insurance? C. Your premium will not increase because your policy is renewable. DINK stands for double income, no kids. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. Work with our consultant to learn what to alter. D. Household with children. is your life insurance need based on the easy method? Find the symmetric intervals around the mean of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL that respectively include the cholesterol levels of 68.3%,95.4%68.3 \%, 95.4 \%68.3%,95.4%, and 99.7%99.7 \%99.7% of all children. They have determined that their annual income is $70,000 and their net worth is now $150,000. $343,000 C. $490,000 D. $700,000 E. $750,000, 86. 72. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. Let us have a look at your work and suggest how to improve it! Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. C. Final life payment. D. Allowed annuities to be purchased for individual retirement accounts. In many cases, the answer is yes. This is a very common type of policy taken by homeowners who want to support their children financially. Amy has worked with students at all levels from those with special needs to those that are gifted. You pay premiums each year for the rest of your life. Contract. This communication strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. Get unlimited access to over 88,000 lessons. loans. A deferred annuity allows an individual to receive payments from an annuity immediately. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o 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. All guarantees are based on the continued claims paying ability of the issuing company. A. Ben. Judy and James have a 4-year-old child. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. 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. What kind of policy would you want to purchase? One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. You have no plans to increase the size of your family in $196,000 C. $280,000 D. $400,000 E. $430,000, 83. It provides both a death benefit and a savings component. C. Tell you why her product is better than the competitors. Student services 37,700 Competition among companies with comparable policies can affect the price a company charges for life insurance. 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 . B. The return on its investments. You policy will continue for one year. The insurer may tell you, or it may ask you to submit a form reporting the death. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Which method are they using to determine their life insurance needs? 27. C. The mortality rate it expects among its policy holders. D. A fixed annuity is one where the investments made into the annuity are variable. A. insurance needs for a family whose youngest child is 5 years 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. Which statement is correct regarding mutual life. What impact do they have on your wealth potential. You can convert your policy to a permanent type at the end of the term. Multiply the income . When can I switch from original Medicare to an Advantage plan? copyright 2003-2023 Study.com. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ 200 lessons. Which of the following riders should he consider? A. Your annual premium is $1,000. Most people buy life insurance to A. C. Your premium will be the same for the duration of your policy. This method is called the non-working spouse method. 65. This is a method that has you adding half of all your debts plus funeral expenses. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ To unlock this lesson you must be a Study.com Member. The process standard deviaton B. A. A. Group life C. Limited life D. Universal life E. Variable life, 50. Your surviving family's ongoing needs are $800,000 for your spouse's needs, and your dependent children's needs are $400,000 for a limited period of time. Sum Assured fixed at Rs. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ 48. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. What kind of policy is he planning to purchase? 35. The maturity benefit is Rs. 43. 5 days. \text{Short-term investments}&&\text{7,666}\\ Beneficiary. Using time value of money and assuming you could invest your 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. Allowed whole life insurance policies to be sold. In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. A. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. She, wants to determine her insurance needs. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. Your annual income is $100,000. Using the DINK method, what should be your need for life insurance? \textbf{Assets}\\ All of the following are major rating agencies for insurance except A. How to Buy Life Insurance: Steps & Choices, App. 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. Certificates of deposit. Pay off a mortgage. C. Retired couple with a pension. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. $30,000 B. Whole life. DINK stands for double income, no kids. I highly recommend you use this site! \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ This term life policy will guarantee that you will pay the same premium for the duration of your policy. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. Buying from a financially strong company B. D. Fund expense. In other words, you will have to show why you want to insure the individual. 71. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. E. Convince you to buy the policy that will pay her the highest commission. Which of the following is NOT a type of permanent life insurance? 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. Using the easy 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. Futures Contract in Finance Purpose & Examples | What Are Futures? Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. TERMS OF SERVICE determine the minimum amount of life insurance you should carry. The first is the easy method. was specifically designed for someone in her situation? But from a financial perspective, it does not have to be a crisisif you have good planning. Protection against loss of life for a specified term. What are the four methods of determining life insurance needs? E. All of these. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. 47. 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. Likewise, when using the rule of 72, the number 72 is used in the calculation. What is a Rider on a Life Insurance Policy? C. It is more expensive than term insurance. What is the cost of living in California? You may need to change your coverage amounts when this happens. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. \text{Tuition and fees receivable (net of doubtful accounts of \$12)}&&\text{230}\\ 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D A. Yes! STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} Try refreshing the page, or contact customer support. 24. 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. 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 companies issue a lot of paperwork. B. Bens beneficiaries. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. 78. 45. A. When deciding the right amount of coverage required for your spouse, everyones need may be different. D. Standard & Poors. C. Decreasing term. B. Mortality and expense risk charge. Which of the following riders would allow her to receive cash now? Anita is a "nonworking" spouse who devotes all of her time to household activities. As a member, you'll also get unlimited access to over 88,000 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. This gives you seven years of wages at 70%. Benefits of Life Insurance Using the nonworking spouse method, what should be the life Which of the following is NOT temporary insurance? An immediate annuity allows an individual to receive payments from an annuity beginning at once. With the right term insurance policy in place, stay prepared for any adversity. Course Hero is not sponsored or endorsed by any college or university. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. $13,000 B. About ___ of the U.S. life insurance companies are stock companies. E. 60 days. 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. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. How to Estimate Life Insurance Requirements - Study.com The maturity benefit in form of a lumpsum benefit equal to Rs.33,19,055 is paid at the end of the 20th year, provided the policy is in-force and all due premiums have been paid. \quad\text{Deposits held in custody for others}&&\text{700}\\ Riders in Insurance Not necessarily. The second is the DINK method. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. Term insurance for non-working spouse in India will be of great help. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Wendy has had a life insurance policy for five years. You should be able to collect the life insurance payout within 30 to 60 days after you have submitted the completed claim forms and the supporting documents. If marriage has taken place after the policy commencement date, you can add the Spouse to your policy within one year from the date of the marriage. What are the stages of the General Adaptation Syndrome (GAS)? E. None of these is correct. What percentage of your income should you spend on life insurance? Solved Using the "nonworking" spouse method, what should be - Chegg Who will receive the benefits from her policy? $50,000 C. $80,000 D. $100,000 E. $180,000 B. Use the multiple of income method to 60. The "Family Need" Method. 5. 5% B. B. 75. Shaan and Anita are married and have two children, ages 4 and 7. Quickly and professionally. Which of the following statements is correct? D. Life income option. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Protect the people who depend on the insured from financial losses caused by his or her death. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, For example, say you're the only one working in your family and your youngest child is three. 38. \end{array} Surrender charge. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. D. You must pay interest on any outstanding policy loans. old? 'QP2?^03dw 6x ;!;RTkz}Sc;)iI Which of the following life insurance policies should she apply for? 99. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? D. Life income option. She was recently divorced. 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. 81. Using the nonworking spouse method, what should be the life The premium shall be adjusted on the due date even if it has been received in advance. 70. E. None of these. [Content_Types].xml ( Y0}GM Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. If you want to purchase term insurance, you will receive all of the following except A. The companys cost of doing business. E. The policy requires that you pay a specified premium each year for the rest of your life. Life insurance is a wise purchase of all individuals. Whole Life Insurance In contrast to the biopsychosocial model, the biomedical model views health as ___________. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Which of the following riders should she consider? This method is called the non-working spouse method. Please consult your independent tax advisor for details. Annuities are often purchased for A. Your premium will not increase when you renew it. Can you get life insurance on a spouse? \quad\text{Unearned revenue}&&\text{900}\\ Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. You and your spouse are in good health and have reasonably secure jobs. Amy bought a life insurance policy and named Ben as her beneficiary. C. Convertible term. You estimate that funeral expenses will be $5,000. Something went wrong. Term C. Credit life D. Endowment life E. Adjustable life, 53. She may need to change her coverage as her needs change. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. 59. Group life B. A. 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? The non-working spouse method is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Insurance Need: ? After payment was received, tuition Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children.