Academic support 23,300 Your premium will not increase when you renew it. 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. A. You must pay interest on any loans. \text{Short-term investments}&&\text{7,666}\\ You have to drive them to and from school, oversee homework and music practice. B. Amy has a master's degree in secondary education and has been teaching math for over 9 years. 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Sum Assured as chosen by the Working Spouse under the Plan. 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. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. How long is the grace period for health insurance policies with monthly due premiums? 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D 12-3 In this episode, John continues his series on the. $40,000 B. As a member, you'll also get unlimited access to over 88,000 Suppose that yours is a typical family. Use Exhibit 1-B. A. Waiver of premium disability benefit B. Your needs will also change over time, so your life insurance needs may also change over time. PERSONAL FINANCE TIPS DELIVERED DIRECTLY IN YOUR INBOX, By submitting your name and email you are allowing us to store your personal data and send you emails. method, what should be your need for life insurance? The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. Limited installment payment. The investment risk in investment portfolio is borne by the policyholder. A. Which method are they using to determine their life insurance needs? For a non-Working Spouse. Not necessarily. Which of the following is the process of getting oxygen from the environment to the tissues of the body? This problem has been solved! nonworking spouse whose youngest child is 5 years old? Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. B. The second is the DINK method. E. Cash value life. 71. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. $86,000 C. $98,000 D. $172,000 E. $217,000. In contrast to the biopsychosocial model, the biomedical model views health as ___________. Benefits of Life Insurance Instruction$86,100 E. Proceeds left with the company. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). Frank, age 38, was hit by a car and died. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. If you have a renewable term policy, A. Ask to set up a Wealth Curve conversation. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Work with our consultant to learn what to alter. 200 lessons. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. A. Waiver of premium disability benefit B. E. It is permanent life insurance. old? All other trademarks and copyrights are the property of their respective owners. Each earns $45,000 annually. Its like a teacher waved a magic wand and did the work for me. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. Do both you and your spouse need life insurance? This is a method that has you adding half of all your debts plus funeral expenses. Create your account, 18 chapters | Which of the following riders should he consider? The Tax Reform Act of 1986 A. Of the following, which one is the most positive feature of whole life insurance? d. 28. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. Sum Assured as chosen by the Working Spouse under the Plan. You have a gross annual income of $62,000. Quickly and professionally. Which of the following provisions should she take action on? D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. A. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. The Wealth Curve Talk with John L. Smallwood. This method is used only to calculate child care needs, not the total financial needs of the family. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. Whole life. 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. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. PDF Life Insurance Needs: Rules of Thumb - Wickham Services Net deposits returned to students totaled $10. C. Individual retirement accounts (IRAs). An immediate annuity allows an individual to receive payments from an annuity beginning at once. Which of the following households most likely has the greatest need for life insurance? A. Waiver of premium disability benefit B. makes about $38,000 annually. D. Her parents. e. a place in which to keep products until they are needed 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. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. 65. 5 days. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. Further, you estimate that your funeral will cost $6,000. 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. A. The Policy will terminate after payment of this benefit. You estimate that funeral expenses will be $5,000. 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There are many situations to consider, and the methods you just heard about may or may not fit your needs. 60. How much term does a non-working spouse get? Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. B. Multiyear level term. In other words, you will have to show why you want to insure the individual. $50,000 C. $80,000 D. $100,000 E. $180,000 B. Adult child living with parents. See Answer E. Convince you to buy the policy that will pay her the highest commission. 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). Which of the following policies should she buy? 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. This is a method that has you adding half of all your debts plus funeral expenses. Which of the following riders should he consider? Please consult your independent tax advisor for details. A. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. A. False. 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. Non-Working Spouse Method. A. Life insurance companies issue a lot of paperwork. \textbf{Statement of Financial Position}\\ Need for a Life Insurance for the Non-Working Spouse - Canara HSBC Life Ag;sE2/yNNF;eF]!hiV^r^l PK ! But life insurance rates can vary dramatically among applicants, insurers and policy types. Insurance Premium E. Made all annuities tax free. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Another name for temporary life insurance is A. D. Your policy will have the same premium as other term policies. E. All of these. 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. It also collected $820 of Pledges Receivable that were unrestricted. Group life C. Limited life D. Universal life E. Variable life, 49. C. Final life payment. This last method is called the family need method. Exam 3 Flashcards by Sam Cohen | Brainscape Chapter 10 Personal Finance - Subjecto.com Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. \text{Liabilities:}\\ Each plans to continue to work after the other one dies. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? A. A. Adjustable life B. to work after your death. 5% B. \textbf{(amounts in thousands)}\\ B. You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a Everyone is impacted by these 5 problems. If you have a multiyear level term policy, A. determine the minimum amount of life insurance you should carry. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). The companys cost of doing business. DINK stands for double income, no kids. insurance needs using the DINK method. 79. When deciding the right amount of coverage required for your spouse, everyones need may be different. 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. Let us have a look at your work and suggest how to improve it! Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using Group life B. 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. Also, if you try to make up some of that yourself, you lose income and income potential. 69. T&C Apply. 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. E. Proceeds left with the company. Which of the following is a charge you will pay when you purchase a variable annuity? C. Your premium will not increase because your policy is renewable. copyright 2003-2023 Study.com. A. What is the cost of living in California? Cross), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Psychology (David G. Myers; C. Nathan DeWall), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Give Me Liberty! After payment was received, tuition I would definitely recommend Study.com to my colleagues. B. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. She was recently divorced. 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? B. 58. You can get your paper edited to read like this. Term Insurance For Non-Working Spouse In India - Policybazaar 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. D. Allowed annuities to be purchased for individual retirement accounts. A. When using the rule of 70, the number 70 is used in the calculation. Which of the following life insurance policies should she apply for? Variety of Fund Options and Portfolio Management Strategies, Loyalty Additions + Wealth Boosters + Return of Mortality Charges, Optional In-built covers to enhance coverage, Policy Term of 1 year or less than 1 year. 99. The first is the easy method. D. Your premium will not increase when you renew it. Allison is a "nonworking" spouse who devotes all of her time to household activities. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. To Buy: 1800-258-5899 (9:30 AM to 6:30 PM), For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003, Managing Director & Chief Executive Officer. participating policy (dividends will be used to build up the cash value of the policy). Sum Assured fixed at Rs. Allison is a "nonworking" spouse who devotes all of her time to household activities. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. The policy loan provision means that A. the easy method to determine how much life insurance you should carry. Your annual income is $100,000. C. Your premium will be the same for the duration of your policy. Further, you estimate that your funeral will cost $6,000. Using the nonworking spouse method what should be the life insurance This method is called the non-working spouse method. D. Term life insurance plans. And, lastly, the family need method is a method that has you calculating your immediate needs upon death, adding it to the ongoing needs of surviving family members, and then subtracting your available assets from it. nonworking spouse whose youngest child is 6 years old? With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. loans. Endowment Plans D. Insurer. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. 43. is =1.25\sigma = 1.25=1.25. There are many life circumstances you need to consider, but depending on your circumstances, there are different methods you can use to figure out your life insurance coverage requirement. B. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. Using the easy 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. A. Ben. What is your life insurance need using the DINK method? Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. 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. Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. The most common settlement option for a life insurance program is the lump-sum payment. 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? Jeff and Erica have two children. C. Retired couple with a pension. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Contract. 42. ^Individual death claims settled and reported in public disclosures for FY 2021-22. C. It is more expensive than term insurance. A. Adjustable life B. 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 income replacement approach is a method of determining the amount of life insurance you should purchase. Whole Life Insurance What percentage of your income should you spend on life insurance? Group life C. Limited life D. Universal life E. Variable life, 51. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI A. Annuity Formula, Calculation & Examples | What is an Annuity? A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Table lamp. Shaan and Anita are married and have two children, ages 4 and 7. Donald and Charlene are married and do not have any children. D. A fixed annuity is one where the investments made into the annuity are variable. Each of you 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. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. 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. Expert Answer 100% (1 rating) Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s View the full answer Previous question Next question What happens if you don't pay your health insurance deductible? Allison is a "nonworking" spouse who devotes all of her time to household activities. Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. Life expectancy for men is longer than that for women. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. Your spouse expects to continue to work after your death. A. This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. 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. D. Term. B. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. Pay off a mortgage. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. E. Weiss Research. E. None of these. The DINK method has you adding half of all your debts to your funeral expenses. Wendy has had a life insurance policy for five years. PPTX Life Insurance Chapter Fourteen - University of Arkansas They plan to purchase life insurance using this formula: Current income 7 70%. Use the easy method to determine how much insurance she should carry. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. insurance needs for a family whose youngest child is 5 years A. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. Estimate how much life insurance Tim and Allison should carry to cover Allison. insurance needs for a family whose youngest child is 5 years 68. age 35 may expect to live. old? C. Final life payment. The maturity benefit is Rs. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. What are the stages of the General Adaptation Syndrome (GAS)? A. Whole life. What kind of policy would she want to purchase? \textbf{June 30, 2019}\\ In case of death of the Life Assured during the Policy Term, Sum Assured on Death basis the Coverage option opted, less cumulative monthly income(s) already paid shall be payable. True. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. B. Jumping the Wealth Curve with Edward E. Bao Jr. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. Which method are they using to determine their life insurance needs? Straight life C. Ordinary life D. Term life E. Cash value life. NOT FDIC INSURED. Your annual premium is $1,000. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card 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. $13,000 B. 70. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. C. Final life payment. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} 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. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. Which of the following statements is correct? A. 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. 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. Amy bought a life insurance policy and named Ben as her beneficiary. All guarantees are based on the continued claims paying ability of the issuing company. Let's review. Which of the following riders would allow her to receive cash now? It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Who will receive the benefits from her policy? However, at a minimum, you should consider the financial value of child care, house care, and other domestic services that your spouse has been taking care of at present. Likewise, when using the rule of 72, the number 72 is used in the calculation. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o This is a very common type of policy taken by homeowners who want to support their children financially. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. Can non-working spouses qualify for a life insurance? 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. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. C. A life insurance policy allows an individual to receive payments from an annuity at once.