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If you have a renewable term policy, A. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? What is the cost of living in California? E. Credit life. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? The premium so collected in advance shall only be adjusted on the due date of the premium. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. False. method, what should be your need for life insurance? A. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. Insurance needed. C. It is more expensive than term insurance. \end{array} Insurance Premium 71. 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. 24. Do both you and your spouse need life insurance? Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year However, where the premium due in a financial year is being collected in previous financial year, the premium may be collected for a maximum period of three months in advance of the due date of the premium. You pay premiums each year for the rest of your life. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} D. Her parents. E. It is permanent life insurance. 97. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. A. 76. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. $12,000 B. All of the following are major rating agencies for insurance except A. If you are a family and either you or your spouse stays home with the children, it is most likely that only the working souse has life insurance coverage because thats the case with most families in our country. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Most people buy life insurance to A. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. E. Made all annuities tax free. Which of the following riders should he consider? Donald and Charlene are married and do not have any children. It provides both a death benefit and a savings component. C. Policyholder. B. A person who is named to receive the benefits from an insurance policy is a(n) A. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Your annual income is $60,000. T&C apply. 37. With the right term insurance policy in place, stay prepared for any adversity. Limited installment payment. 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. NOT FDIC INSURED. A. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. B. Todd plans to purchase a life insurance policy from a stock life insurance company. Home Flashcards Chapter 10 Personal Finance. PK ! Jeanne wants to purchase a life insurance policy with guaranteed premiums. d. a way of shipping goods to customers They have determined that their annual income is $70,000 and their net worth is now $150,000. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. 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. Which of the following statements is correct? 65. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. Benefits of Life Insurance What is Life Insurance? Megan wants to purchase a life insurance policy that will allow her to invest in stock. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? D. Term. E. Proceeds left with the company. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card You policy will continue for one year. 5. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. Use Exhibit 1-B. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D D. Life income option. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. Your annual premium is $1,000. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. is your life insurance need based on the easy method? the easy method to determine how much life insurance you should carry. Which of the following policies should she buy? C. Identified annuities to be the same as certificates of deposit. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. Enrolling in a course lets you earn progress by passing quizzes and exams. How to estimate life insurance requirements for a non working spouse? 59. 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. 35. d. 28. This is a very common type of policy taken by homeowners who want to support their children financially. 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. 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. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of$26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of$4,700 ($790 was related to investments restricted for scholarships,$1,610 was related to the permanent endowment, the remainder was related to net assets without donor restrictions). Using Exhibit 12-1, determine the average numbers of additional years males alive at Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = The sooner a person is likely to die, the lower the premiums he or she will pay. Another name for temporary life insurance is A. A. The timing for payments of a variable annuity are variable. Please check your entries and try again. A. Waiver of premium disability benefit B. B. The DINK method has you adding half of all your debts to your funeral expenses. 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. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ makes about $38,000 annually. Fred bought life insurance five years ago. It equals the cost of replacing the property. C. Tell you why her product is better than the competitors. I feel like its a lifeline. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). \textbf{Liabilities and Net Assets}\\ Not necessarily. True The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets False Mutual life insurance companies specialize in the sale of nonparticipating policies False C. Ordinary life. C. Final life payment. B. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. What method. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. A. 58. You want to purchase a life insurance policy that pays a dividend. Using the DINK method, what should be your need for life insurance? Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. D. Term life insurance plans. Which of the following riders would allow her to receive cash now? Straight life. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. B. 2. 700 cartons to be stored. D. Limited payment. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. 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. Try refreshing the page, or contact customer support. Which of the following is NOT temporary insurance? This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. D. Your premium will not increase when you renew it. A. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. To unlock this lesson you must be a Study.com Member. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Look through financial records. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. to work after your death. Best Investment Options in India Suppose that yours is a typical family. Group life C. Limited life D. Universal life E. Variable life, 49. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. Which of the following provisions should she take action on? 39. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. A. If their youngest child is 5 years old, how much do they need? C. Pay for a vacation. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI 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. A. 1. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. 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. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. In this episode, John continues his series on the. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. . She may need to change her coverage as her needs change. You have no plans to increase the size of your family in insurance needs for a family whose youngest child is 5 years Each plans to continue to work after the other one dies. Use the multiple of income method to You can convert your policy to a permanent type at the end of the term. Futures Contract in Finance Purpose & Examples | What Are Futures? 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. 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. 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. 38. A. Adjustable life B. Now, if it's just you and your spouse, you can use the DINK method. Contract. What are the stages of the General Adaptation Syndrome (GAS)? \text{Tuition and fees receivable (net of doubtful accounts of \$12)}&&\text{230}\\ You and your spouse are in good health and have reasonably secure jobs. \textbf{STEINER COLLEGE}\\ 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. Plus, get practice tests, quizzes, and personalized coaching to help you - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Use the easy method to determine how much insurance she should carry. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. What is the amount of life insurance they should carry using the easy method?