the nonworking spouse method of estimating life insurance

a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. D. Your premium will not increase when you renew it. 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. Investors in the Scheme are not being offered any guaranteed / assured returns. 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. Fred bought life insurance five years ago. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). 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. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. The premium so collected in advance shall only be adjusted on the due date of the premium. '`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+ Which of the following statements is incorrect? Your spouse expects to continue to work after your death. \quad\text{Deposits held in custody for others}&&\text{700}\\ 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. lessons in math, English, science, history, and more. Features of Life Insurance She has since died. B. Certificates of deposit. Purchasing a life insurance policy is a basic and inexpensive task. \textbf{(amounts in thousands)}\\ Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. 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. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 What. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands), AssetsCashandcashequivalents$734Short-terminvestments7,666Tuitionandfeesreceivable(netofdoubtfulaccountsof$12)230Pledgesreceivable(netofdoubtfulaccountsof$280)5,872Prepaidassets1,364Property,plan,andequipment(netofaccumulateddepreciationof$104,240)281,404Investments(atfairvalue,costof$162,000)158,400Totalassets$455,670LiabilitiesandNetAssetsLiabilities:Accountspayableandaccruedliabilities$21,130Depositsheldincustodyforothers700Unearnedrevenue900Bondspayable99,000Totalliabilities127,730Netassets:Withoutdonorrestrictions$104,000Withdonorrestrictions229,940Totalnetassets333,940Totalliabilitiesandnetassets$455,670\begin{array}{lrr} 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. Group life C. Limited life D. Universal life E. Variable life, 50. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. She was recently divorced. Who will receive the benefits from her policy? 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. Academic support 23,300 Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). For example, say your immediate needs upon death are $10,000 for funeral expenses, $50,000 for emergencies, and $95,000 for mortgage, credit card, and college loans. It also collected $820 of Pledges Receivable that were unrestricted. D. Decreasing term. 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. 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. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ d. a way of shipping goods to customers 60. Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. \end{array} Each earns $45,000 annually. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. A. Whole life. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. 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. Sum Assured as chosen by the Working Spouse under the Plan. A. Waiver of premium disability benefit B. All of the following are major rating agencies for insurance except A. Course Hero is not sponsored or endorsed by any college or university. \textbf{June 30, 2019}\\ Which of the following is NOT important when buying life insurance? Protection against loss of life for a specified term. Time Value of Money Formula & Examples | What is Time Value of Money? Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. C. Temporary insurance. What will be the surrender value of LIC policy after 5 years? Another name for permanent life insurance is A. 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. loans. Tax benefits/savings are subject to provisions under section 80 C, 80 CCC, 80 D, 10(10A), 10(10D) and other sections of the Income Tax Act, 1961. B. Bens beneficiaries. C. Convertible term. 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. D. Term life insurance plans. 58. C. You can convert your term policy to a permanent policy. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. 78. Likewise, when using the rule of 72, the number 72 is used in the calculation. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. C: Consumer Agencies & Organizations, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, How to Choose a College: Guidance Counseling, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Certificate Program, Effective Communication in the Workplace: Help and Review, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Intro to Excel: Essential Training & Tutorials, Information Systems and Computer Applications: Certificate Program, GED Social Studies: Civics & Government, US History, Economics, Geography & World, What is Whole Life Insurance? A. A. 70. B. It accumulates cash value. Its like a teacher waved a magic wand and did the work for me. 99. $40,000 B. The "Family Need" Method. In this episode, John continues his series on the. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. 82. Using the nonworking spouse method, what should be the life You have a gross annual income of $62,000. In other words, you will have to show why you want to insure the individual. 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{Liabilities and Net Assets}\\ Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. Wendy has had a life insurance policy for five years. If you have a multiyear level term policy, A. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ 44. Amy has a master's degree in secondary education and has been teaching math for over 9 years. When it comes to purchasing life insurance, you need to make sure you are purchasing enough coverage to cover all your financial needs upon your death. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. A. Which method are they using to determine their life insurance 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. Get unlimited access to over 88,000 lessons. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? I would definitely recommend Study.com to my colleagues. 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. A. Waiver of premium disability benefit B. Estimate how much life insurance Shaan and Anita should carry. insurance needs for a family whose youngest child is 5 years 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. Which of the following is NOT a type of permanent life insurance? Diffusion Let us complete them for you. refunds of$11,200 were given. As a member, you'll also get unlimited access to over 88,000 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 Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. Frank, age 38, was hit by a car and died. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. D. Life income option. 71. GST On Life Insurance 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Which of the following is NOT temporary insurance? What is their total insurance need using the DINK method? Straight life. When you're ready to purchase life insurance, you'll need to decide what coverage amount you need so that all your financial obligations and needs are met upon your death. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Steiner is a private college. A. False. A. C. Final life payment. 65. B. Mortality and expense risk charge. Table lamp. B. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ In this case, 18 years. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ Jeff and Erica have two children. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 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.