25% C. 50% D. 75% E. 95%, 32. 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. Get unlimited access to over 88,000 lessons. The cash value of the policy is expected to be In contrast to the biopsychosocial model, the biomedical model views health as ___________. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Endowment Plans B. B. Mortality and expense risk charge. The timing for payments of a variable annuity are variable. One of our associate will call you back shortly. 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. A. You are a dual-income, no-kids family. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Insurance Need: . You and your spouse are in good health and have reasonably secure jobs. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. 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. 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. 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. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ Benefits of Life Insurance Using the DINK method, what should be your need for life insurance? A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. 5 days. Answer . D. Limited payment. the easy method to determine how much life insurance you should carry. Do both you and your spouse need life insurance? 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 products allows an individual to receive payments beginning now? loans. This method is called the non-working spouse method. 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. Another name for temporary life insurance is A. When can I switch from original Medicare to an Advantage plan? E. Made all annuities tax free. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. 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. old? If you have a conversion term policy, A. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. copyright 2003-2023 Study.com. Which of the following is a poor choice for the amount of protection offered for an individual? c. the charge per 100 pounds to ship goods by truck 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. What happens if you dont get life insurance? 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). Protection against loss of life for a specified term. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a d. 28. 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. Estimate how much life insurance Tim and Allison should carry to cover Allison. The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. Amy has worked with students at all levels from those with special needs to those that are gifted. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. About ___ of the U.S. life insurance companies are stock companies. A. Straight life C. Ordinary life D. Term life E. Cash value life. The insurer may tell you, or it may ask you to submit a form reporting the death. Term Insurance For Non-Working Spouse In India - Policybazaar C. Individual retirement accounts (IRAs). Variable life C. Universal life D. Adjustable life E. Decreasing term life. For a non-Working Spouse. Your spouse expects to continue to work after your death. The "Family Need" Method. Such advance premium, if any, paid by the Policyholder shall not carry any interest. D. Her parents. B. IN THIS ARTICLE Disability income insurance, which complements health insurance, can replace lost income and help protect you and your family from an otherwise financially catastrophic illness or injury. This website helped me pass! Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. False. Each plans to continue to work after the other one dies. \textbf{Statement of Financial Position}\\ Whole life B. Life Insurance Underwriting Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. nonworking spouse whose youngest child is 5 years old? I would definitely recommend Study.com to my colleagues. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. 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. Past performance of the investment funds do not indicate the future performance of the same. What impact do they have on your wealth potential. All rights reserved. Life insurance is a wise purchase of all individuals. Anita is a "nonworking" spouse who devotes all of her time to household activities. insurance needs using the DINK method. D. Term life insurance plans. A. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, A. Is life insurance for married couples cheaper? 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} E. Proceeds left with the company. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. Cash value. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. E. Child. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. How much term does a non-working spouse get? E. Weiss Research. Term insurance B. A. 76. Beneficiary. Sum Assured as chosen by the Working Spouse under the Plan. Which of the following riders should he consider? 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. You policy will continue for one year. A. It equals the cost of replacing the property. DINK stands for double income, no kids. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Purchasing a life insurance policy is a basic and inexpensive task. B. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. Which method are they using to determine their life insurance needs? e. a place in which to keep products until they are needed Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. Chapter 10 true and false Flashcards | Quizlet Its like a teacher waved a magic wand and did the work for me. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. 96. 3 days. The process standard deviaton A. 45. A. When using the rule of 70, the number 70 is used in the calculation. E. All of these affect the price. Use Exhibit 1-B. 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. A. D. Your premium will not increase when you renew it. - 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? Please check your entries and try again. Your premium may increase if you continue it for another term because you will be older. Most people buy life insurance to A. d. a way of shipping goods to customers A. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. You can convert your policy to a permanent type at the end of the term. Claim Settlement Ratio The question is, how big are yours? Which of the following is NOT a type of permanent life insurance? Ask a Family Member's Financial Advisor. Further, you estimate that your funeral will cost $6,000. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. Fred bought life insurance five years ago. Best Investment Options in India E. None of these is correct. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. An immediate annuity allows an individual to receive payments from an annuity beginning at once. D. Standard & Poors. E. An insurance company will calculate the annual amounts to pay each person for an annuity. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Life expectancy for men is longer than that for women. 82. What are the four methods of determining life insurance needs? E. None of these. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. 1. C. Her contingent beneficiaries. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. 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. A. 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. C. It is more expensive than term insurance. A. Adjustable life B. A. A process has specification limits of LSL 5 540 and USL 5 550. method, what should be your need for life insurance? A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Life insurance companies issue a lot of paperwork. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. B. You can get your paper edited to read like this. 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. was specifically designed for someone in her situation? This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. E. None of these is correct. nonworking spouse whose youngest child is 5 years old? Which of the following riders provided an additional benefit for his heirs? Insurance Need: ? insurance needs for a family whose youngest child is 5 years This is a very common type of policy taken by homeowners who want to support their children financially. B. Your needs will also change over time, so your life insurance needs may also change over time. The maturity benefit is Rs. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. Likewise, when using the rule of 72, the number 72 is used in the calculation. 69. age 35 may expect to live. PDF Life Insurance Needs: Rules of Thumb - Wickham Services Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = Everyone is impacted by these 5 problems. Also, if you try to make up some of that yourself, you lose income and income potential. The premium paid in Unit linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. How long is the grace period for health insurance policies with monthly due premiums? This method is called the non-working spouse method. Your rates will vary based on your unique circumstances, just as they would if you were single. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Which of the following statements is correct? C. The mortality rate it expects among its policy holders. nonworking spouse whose youngest child is 6 years old? 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. 58. Can you buy life insurance for someone who is dying? In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. 43. $86,000 C. $98,000 D. $172,000 E. $217,000. A. They plan to purchase life insurance using this formula: Current income 7 70%. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). 70. 73. You are the wage earner in a typical family, with $55,000 gross annual income. This is also the most thorough method. Quickly and professionally. If you are looking for life insurance, you probably realize the need to secure your family financially, but if you are married, your safety net is probably incomplete unless your spouse also has an adequate life insurance coverage to take care of your familys overall financial needs. Group life C. Limited life D. Universal life E. Variable life, 51. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. 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. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Riders in Insurance Which of the following policies would meet her needs? . This gives you 7 years of wages at 70%. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. Something went wrong. A. Waiver of premium disability benefit B. 5% B. 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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. Each of you Using Exhibit 12-1, determine the average numbers of additional years males alive at Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. 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.