For a non-Working Spouse. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. What happens if you don't pay your health insurance deductible? D. Term life insurance plans. E. Made all annuities tax free. Judy and James have a 4-year-old child. A. Is equipment floater the same as inland marine? Georgia was supposed to pay her premium by the 15th of the month. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI
Claim Settlement Ratio
Allison is a "nonworking" spouse who devotes all of her time to household activities. old? The DINK method has you adding half of all your debts to your funeral expenses. It provides both a death benefit and a savings component. You have a gross annual income of $62,000. This term life policy will guarantee that you will pay the same premium for the duration of your policy. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ 42. Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. $4,000. D. Life income option. So your life insurance requirement is 15 $10,000 = $150,000. A. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. 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. 74. 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. C. Final life payment. A. Waiver of premium disability benefit B. 81. 700 cartons to be stored. Using the nonworking spouse method, what should be the life More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. The capital retention method is a method of determining the amount of life insurance needed by using an interest-only model to support your family. E. Whole life insurance plans. Which of the following statements is incorrect? the near future. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Of course, it would be a tragedy were something to happen to your spouse. In this episode, John continues his series on the. D. Standard & Poors. Estimate how much life insurance Shaan and Anita should carry. Time Value of Money Formula & Examples | What is Time Value of Money? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A. Ask a Family Member's Financial Advisor. C. Tell you why her product is better than the competitors. The spouse who has to stay at home, looking after the children, cooking, and supporting the family often has a more tiresome job to do, than the working spouse. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. Which method are they using to determine their life insurance needs? Surrender charge. \textbf{Statement of Financial Position}\\ B. Experts are tested by Chegg as specialists in their subject area. This gives you 7 years of wages at 70%. How long is the grace period for health insurance policies with monthly due premiums? \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ Variable life C. Universal life D. Adjustable life E. Decreasing term life. A.M. Best. They have determined that their annual income is $70,000 and their net worth is now $150,000. Which of the following riders provided an additional benefit for his heirs? Use Exhibit 1-B. E. Proceeds left with the company. A. Waiver of premium disability benefit B. Insurance Premium
[Content_Types].xml ( Y0}GM Collections on Tuition and Fees Receivable totaled$222,600. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. 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. 3 days. Which of the following is NOT a type of permanent life insurance? 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 Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. A. Adjustable life B. Can you buy life insurance for someone who is dying? DINK stands for double income, no kids. Each plans to continue to work after the other one dies. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Annuities are often purchased for A. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Which of the following is the process of getting oxygen from the environment to the tissues of the body? They plan to purchase life insurance using this formula: (18 Youngest childs age) $10,000. Each earns $45,000 annually. This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. A. Waiver of premium disability benefit B. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 25. What is the amount of life insurance they should carry using the "nonworking" spouse method? C. Temporary insurance. . 75. 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. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. B. 48. What will be the surrender value of LIC policy after 5 years? 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. Jeanne wants to purchase a life insurance policy with guaranteed premiums. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ Each of you Answer: 111, Using the "nonworking" spouse method, what should be the life insurance needs for a nonworking spouse whose youngest child is 5 years old? Which of the following provisions will affect the amount of money his beneficiaries will receive? b. the number of each item you have in stock Non-Working Spouse Method. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. refunds of$11,200 were given. It will have a lower coverage amount and a waiting period (usually 2 year). D. Limited payment. 12-3 Welcome to the Wealth Curve Talk Podcast. What method would probably be the best. Which of the following policies would meet her needs? The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. After you purchase a life insurance contract, you have a "free look" period that lasts A. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. 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. Adult child living with parents. Straight life C. Ordinary life D. Term life E. Cash value life. What kind of policy would you want to purchase? Using time value of money and assuming you could invest your 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. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. Call the State Commissioner's Office for your State. nonworking spouse whose youngest child is 5 years old? 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. 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. 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). Which of the following provisions should she take action on? Which of the following policies should she buy? C. Pay for a vacation. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. 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. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. age 35 may expect to live. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. \textbf{STEINER COLLEGE}\\ Yes! The process standard deviaton 93. An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money, The lower the interest-adjusted index, the lower the cost of a 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. Another name for temporary life insurance is A. See Answer Which of the following is a poor choice for the amount of protection offered for an individual? - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Whole life B. Insurance needed. Which method are they using to determine their life insurance needs? What. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. E. Single year term. 99. B. Your spouse expects to continue insurance needs for a family whose youngest child is 5 years 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. He has since died. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. C. The policy owner can borrow any amount up to the cash value of the policy. Jeff and Erica have two children. 101. Buying from a financially strong company B. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. C. Identified annuities to be the same as certificates of deposit. the income provider's salary. to work after your death. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. Limited installment payment. You have no other debt. Ask to set up a Wealth Curve conversation. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. E. Weiss Research. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Sum Assured as chosen by the Working Spouse under the Plan. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. Your rates will vary based on your unique circumstances, just as they would if you were single. 25,00,000 which will remain same throughout the Policy Term. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. Course Hero is not sponsored or endorsed by any college or university. Fred bought life insurance five years ago. Suppose that yours is a typical family. 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. Get unlimited access to over 88,000 lessons. 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. D. Fund expense. 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. \text{Short-term investments}&&\text{7,666}\\ All rights reserved. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. Protection against loss of life for a specified term. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Sum Assured as chosen by the Working Spouse under the Plan. E. An insurance company will calculate the annual amounts to pay each person for an annuity. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Life insurance companies issue a lot of paperwork. Allison is a "nonworking" spouse who devotes all of her time to household activities. Straight life. E. None of these is correct. The Wealth Curve Talk with John L. Smallwood. 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. A. You heard about several methods you can use to calculate your life insurance needs. \text{Prepaid assets}&&\text{1,364}\\ A process has specification limits of LSL 5 540 and USL 5 550. 46. When using the rule of 70, the number 70 is used in the calculation. 39. We want to help you with that. 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. 200 lessons. T&C apply. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Your premium may increase if you continue it for another term because you will be older. 2003-2023 Chegg Inc. All rights reserved. C. Moodys. Whole life. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. About ___ of the U.S. life insurance companies are stock companies. Allison is a "nonworking" spouse who devotes all of her time to household activities. $12,000 B. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. 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 premium shall be adjusted on the due date even if it has been received in advance. 41. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. Endowment Plans