Annuity Formula, Calculation & Examples | What is an Annuity? D. 30 days. If you want to purchase term insurance, you will receive all of the following except A. D. Spend money. Which of the following life insurance policies should she apply for? Investors in the Scheme are not being offered any guaranteed / assured returns. B. Claim Settlement Ratio A. \text{Prepaid assets}&&\text{1,364}\\ He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. makes about $38,000 annually. 72. Diffusion Let us complete them for you. 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. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. Which of the following is NOT a type of permanent insurance? Amy has a master's degree in secondary education and has been teaching math for over 9 years. This gives you seven years of wages at 70%. Sell you the highest level of coverage available. A. 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. 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. E. Child. Use Which of the following is NOT important when buying life insurance? 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. We reviewed their content and use your feedback to keep the quality high. Which of the following statements is incorrect? He has since died. Can someone be denied homeowners insurance? Straight life. C. A life insurance policy allows an individual to receive payments from an annuity at once. Your spouse expects to continue to work after your death. Please consult your independent tax advisor for details. Term insurance for non-working spouse in India will be of great help. The Policy will terminate after payment of this benefit. A. C. Retired couple with a pension. She was recently divorced. Your annual income is $100,000. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ B. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ c. the charge per 100 pounds to ship goods by truck This problem has been solved! Collections on Tuition and Fees Receivable totaled$222,600. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ 37. Best Investment Options in India The last thing to realize is that calculating your life insurance needs can be tricky. But from a financial perspective, it does not have to be a crisisif you have good planning. You have to drive them to and from school, oversee homework and music practice. Adult child living with parents. C. Decreasing term. insurance needs using the DINK method. 71. Estimate how much life insurance Tim and Allison should carry. DESIGNED BY: INTERSOFT ASSOCIATES. False. 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. A. Or, you can call us at (800) 797-1000. 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. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Plus, get practice tests, quizzes, and personalized coaching to help you C. Convertible term. E. No interest will accumulate for any loans related to life insurance. All rights reserved. Each plans to continue to work after the other one dies. The investment risk in investment portfolio is borne by the policyholder. What method. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? 40. determine the minimum amount of life insurance you should carry. A. E. Made all annuities tax free. How much storage space is required? Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. Most people buy life insurance to A. Is life insurance for married couples cheaper? Buying from professionally qualified representatives C. Ignoring the reputations of local agencies D. Working with a representative who will help you select the proper kind of protection within your financial boundaries E. Asking family or friends for recommendations to choose an insurance company. old? The first is the easy method. Buying from a financially strong company B. E. All of these affect the price. \end{array} nonworking spouse whose youngest child is 5 years old? What percentage of your income should you spend on life insurance? B. Life Insurance Underwriting Home Flashcards Chapter 10 Personal Finance. D. You must pay interest on any outstanding policy loans. If the policy exists, you can ask if you're a beneficiary. One of our associate will call you back shortly. Most participating policies are sold by: 102. \textbf{STEINER COLLEGE}\\ It also collected $820 of Pledges Receivable that were unrestricted. She has since died. A. Amy has worked with students at all levels from those with special needs to those that are gifted. The family needs approach requires you to purchase enough life insurance to allow your family to meet its various expenses in the event of your death. Goods & Services Tax will be charged on the premium amount. age 35 may expect to live. 67. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. A.M. Best. The insurer may tell you, or it may ask you to submit a form reporting the death. C. Tell you why her product is better than the competitors. What is the most important part of an insurance agents job? Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Work with our consultant to learn what to alter. Use the multiple of income method to So your life insurance requirement is 15 $10,000 = $150,000. How to Buy Life Insurance: Steps & Choices, App. 4.Tax benefit of Rs. Using the nonworking spouse method, what should be the life insurance needs for a 96. Estimate how much life insurance Tim and Allison should carry. A. Yes! Your rates will vary based on your unique circumstances, just as they would if you were single. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. B. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. Whole life B. B. A deferred annuity allows an individual to receive payments from an annuity at some future date. C. Final life payment. Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. Donald and Charlene are married and do not have any children. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Georgia was supposed to pay her premium by the 15th of the month. Frank, age 38, was hit by a car and died. 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. You have a spouse, two kids, a dog and a mortgage - a typical family. Whether you're married, domestic partners or simply sharing a life with someone you love, taking out a pair of affordable term life insurance policies can provide both financial security and peace of mind. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. Its free, with no obligation. . You can convert your policy from permanent to term at any time. This is a very common type of policy taken by homeowners who want to support their children financially. If you are a family and either you or your spouse stays home with the children, it is most likely that only the working souse has life insurance coverage because thats the case with most families in our country. I would definitely recommend Study.com to my colleagues. \textbf{Statement of Financial Position}\\ \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ This is a very common type of policy taken by homeowners who want to support their children financially. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). 75. $30,000 B. 25. 25% C. 50% D. 75% E. 95%, 32. C. 10 days. Pay off a mortgage. 66. In this episode, John continues his series on the. A. 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. old? Jeff Willis has five kids and more debt than the, average family. Steiner is a private college. Having life insurance for income replacement means if you pass away, your family could have the financial support they need to maintain the lifestyle they're used to. 25,00,000 which will remain same throughout the Policy Term. Now, if it's just you and your spouse, you can use the DINK method. D. Limited payment. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. 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. 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 This method is called the non-working spouse method. 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. B. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. A. Adjustable life B. C. Moodys. B. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. How much term does a non-working spouse get? It provides both a death benefit and a savings component. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. 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. This last method is called the family need method. This next method is for those with just one wage earner in the family. Call the State Commissioner's Office for your State. Fixed annuity B. Riders in Insurance Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. method, what should be your need for life insurance? Competition among companies with comparable policies can affect the price a company charges for life insurance. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. TERMS OF SERVICE Marianne and Roger are in good health and have reasonably secure careers. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. The "Family Need" Method. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Your annual premium is $1,000. to work after your death. 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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. Past performance of the investment funds do not indicate the future performance of the same. In other words, you will have to show why you want to insure the individual. You are the wage earner in a typical family, with $55,000 gross annual income. Estimate how much life insurance Shaan and Anita should carry. E. None of these is correct. Of the following, which one is the most positive feature of whole life insurance? Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. E. Weiss Research. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Group life C. Limited life D. Universal life E. Variable life, 51. B. 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Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. Whole life B. 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? d. 28. 700 cartons to be stored. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D D. Household with children. We look forward to speaking with you. Wendy has had a life insurance policy for five years. A deferred annuity allows an individual to receive payments from an annuity immediately. DINK stands for double income, no kids. Further, you estimate that your funeral will cost $6,000. 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. Factors That Affect Life Insurance Premiums When calculating an amount, ask yourself what it will cost to hire someone to replace your spouse and perform all the tasks your non-working spouse does throughout the day. \text{Short-term investments}&&\text{7,666}\\ When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Insurance Need: . All other trademarks and copyrights are the property of their respective owners. What happens if you don't pay your health insurance deductible? Find the factor on the chart where the nonworking spouse's age intersects with the working spouse's income from the column on the left 3. 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