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This is a very common type of policy taken by homeowners who want to support their children financially. Certificates of deposit. A. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. You must pay interest on any loans. All other trademarks and copyrights are the property of their respective owners. Further, you estimate that your funeral will cost $6,000. You want to purchase a life insurance policy that pays a dividend. Most people buy life insurance to A. You may not purchase insurance once your term ends. 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? A. Ben. A. You may need to change your coverage amounts when this happens. E. Made all annuities tax free. How much storage space is required? 80. Is equipment floater the same as inland marine? 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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. This method is called the non-working spouse method. The investment risk in investment portfolio is borne by the policyholder. Endowment Plans Which method are they using to determine their life insurance needs? Course Hero is not sponsored or endorsed by any college or university. C. Administrative fee. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ How much term does a non-working spouse get? You policy will continue for one year. About ___ of the U.S. life insurance companies are stock companies. Contract. GST On Life Insurance 101. \quad\text{Unearned revenue}&&\text{900}\\ Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. B. With the right term insurance policy in place, stay prepared for any adversity. Carton is 0.75 m by 0.6 m by 0.8 m. 68. E. Pay taxes. Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D If you mean you want to add life insurance coverage for your new spouse on your life insurance policy, you can contact your life insurance agent or carrier and request what it would cost to add a spouse rider for life insurance coverage to your existing policy. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. What impact do they have on your wealth potential. Diffusion Let us complete them for you. Which of the following policies would meet her needs? insurance needs for a family whose youngest child is 5 years The premium shall be adjusted on the due date even if it has been received in advance. If you have a renewable term policy, A. Jeanne wants to purchase a life insurance policy with guaranteed premiums. Benefits of Life Insurance 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. . method for him to use to calculate his insurance needs? A. Home Flashcards Chapter 10 Personal Finance. 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. Sell you the highest level of coverage available. Group life C. Limited life D. Universal life E. Variable life, 50. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? All rights reserved. A. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. A. So to recap, you can not take out a life insurance policy on someone without their knowledge, and no one should be able to do it to you. The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. is your life insurance need based on the easy method? - Definition & Types, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Unique Selling Proposition (USP): Examples & Definition, What Is Product Placement? Experts are tested by Chegg as specialists in their subject area. B. Straight life. T&C Apply. How to estimate life insurance requirements for a non working spouse? A. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ 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. Read this lesson to learn what methods you can use to calculate your requirements. The Policy will terminate after payment of this benefit. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. \text{Prepaid assets}&&\text{1,364}\\ For example, say you're the only one working in your family and your youngest child is three. A. E. The policy requires that you pay a specified premium each year for the rest of your life. The DINK method has you adding half of all your debts to your funeral expenses. Fixed Annuities are long-term insurance products. Watch on to see what they are. Straight life C. Ordinary life D. Term life E. Cash value life. What percentage of your income should you spend on life insurance? E. None of these. The companys cost of doing business. Can I stay on my parents insurance if I file taxes independently? What is a Rider on a Life Insurance Policy? The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects and returns. Past performance of the investment funds do not indicate the future performance of the same. E. Proceeds left with the company. 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. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. 69. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Likewise, when using the rule of 72, the number 72 is used in the calculation. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. A. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. Using the nonworking spouse method, what should be the life Estimate how much life insurance Tim and Allison should carry to cover Allison. Here's how to calculate the estimated life insurance need: 1. You can take out a life insurance policy on your spouse if you have an insurable interest. The "Family Need" Method. the easy method to determine how much life insurance you should carry. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. \text{Liabilities:}\\ Surrender charge. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. 67. 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. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 2. b. the number of each item you have in stock Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. Not necessarily. \end{array} Pay off a mortgage. Whole life B. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. You have a gross annual income of $62,000. D. Life income option. B. A. Waiver of premium disability benefit B. [Content_Types].xml ( Y0}GM B. C. The policy owner can borrow any amount up to the cash value of the policy. 37. What kind of policy would she want to purchase? A deferred annuity allows an individual to receive payments from an annuity immediately. C. Your premium will be the same for the duration of your policy. 38. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. Do both you and your spouse need life insurance? 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? Using the nonworking spouse method, what should be the life Your premium will not increase when you renew it. 44. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. Please consult your independent tax advisor for details. Judy and James have a 4-year-old child. Can non-working spouses qualify for a life insurance? Student services 37,700 'QP2?^03dw 6x ;!;RTkz}Sc;)iI Welcome to the Wealth Curve Talk Podcast. It provides both a death benefit and a savings component. Ag;sE2/yNNF;eF]!hiV^r^l PK ! A person who is named to receive the benefits from an insurance policy is a(n) A. Whole Life Insurance Catherine Carey has made the choice to stay home and raise her three kids while her husband works. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. D. Term. What happens if you don't pay your health insurance deductible? Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. Using Exhibit 12-1, determine the average numbers of additional years males alive at I feel like its a lifeline. So your life insurance requirement is 15 $10,000 = $150,000. I would definitely recommend Study.com to my colleagues. B. Insurance Premium \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ Whole life. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. This website helped me pass! A. Its like a teacher waved a magic wand and did the work for me. $40,000 B. \textbf{STEINER COLLEGE}\\ 73. Then compute this number as an annual cost and multiply by the approximate number of years you would need those services, say until your children start going to college, or until you retire to take care of the house yourself. B. Multiyear level term. C. Tell you why her product is better than the competitors. A. 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. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. B. Adult child living with parents. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? A. What is the most important part of an insurance agents job? Variable life C. Universal life D. Adjustable life E. Decreasing term life. C. Ordinary life. 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. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. Using time value of money and assuming you could invest your Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). B. 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. E. It is permanent life insurance. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. D. You must pay interest on any outstanding policy loans. This problem has been solved! This is a very common type of policy taken by homeowners who want to support their children financially. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Tim and Allison are married and have two children, ages 4 and 7. 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. 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. Which of the following statements is correct? The income replacement approach is a method of determining the amount of life insurance you should purchase. d. a way of shipping goods to customers It equals the cost of replacing the property. Your annual income is $60,000. Jeff and Erica have two children. B. 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. D. Decreasing term. A. Which statement is correct regarding mutual life. Create your account, 18 chapters | This is a method that has you adding half of all your debts plus funeral expenses. Sum Assured fixed at Rs. Term insurance B. A. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. All of the following are major rating agencies for insurance except A. \end{array} What is the amount of life insurance they should carry using the "nonworking" spouse method? 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. Premium payments are fixed with a Variable Life Policy, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy. 25,00,000 which will remain same throughout the Policy Term. You estimate that funeral expenses will be $5,000. It's 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. Life Insurance Underwriting Use the easy method to determine how much insurance she should carry. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? For example, say. . 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. 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. An error occurred trying to load this video. Todd plans to purchase a life insurance policy from a stock life insurance company. Which of the following is a poor choice for the amount of protection offered for an individual? Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Using the easy Were your family to lose that, you lose all of that labor. Each of you $13,000 B. 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).