the nonworking spouse method of estimating life insurancesteven fogarty father
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. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI E. Pay taxes. What is the most important part of an insurance agents job? Estimate how much life insurance Tim and Allison should carry. A. Georgia was supposed to pay her premium by the 15th of the month. D. Spend money. Protect the people who depend on the insured from financial losses caused by his or her death. 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. Goods & Services Tax will be charged on the premium amount. 45. How much term does a non-working spouse get? Yes! \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ 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. Your spouse expects to continue to work after your death. A. Waiver of premium disability benefit B. Marianne and Roger are in good health and have reasonably secure careers. What kind of policy would she want to purchase? This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ $140,000 B. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? C. Her contingent beneficiaries. Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card Whole life. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o Get unlimited access to over 88,000 lessons. B. D. It builds cash value. 78. 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. Cash value. 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. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. The maturity benefit is Rs. Estimate your total If marriage has taken place after the policy commencement date, you can add the Spouse to your policy within one year from the date of the marriage. Features of Life Insurance Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. Life insurance is a wise purchase of all individuals. 75. 26. 5. Which of the following provisions should she take action on? Endowment Plans Steiner is a private college. You heard about several methods you can use to calculate your life insurance needs. Which of the following households most likely has the greatest need for life insurance? B. 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. An individual can take out a loan on his or her term policy. . It provides both a death benefit and a savings component. Experts are tested by Chegg as specialists in their subject area. C. Retired couple with a pension. The DINK method has you adding half of all your debts to your funeral expenses. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Your spouse expects to continue E. The policy requires that you pay a specified premium each year for the rest of your life. See Answer Estimate how much life insurance Tim and Allison should carry to cover Allison. Types of Life Insurance \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ But from a financial perspective, it does not have to be a crisisif you have good planning. You can get your paper edited to read like this. E. Child. $4,000. Amy has a master's degree in secondary education and has been teaching math for over 9 years. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] A. 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. 5 days. The recommendation is to have seven to ten years of life insurance. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. A. I would definitely recommend Study.com to my colleagues. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. to work after your death. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. GST On Life Insurance A. b. the number of each item you have in stock B. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D She may need to change her coverage as her needs change. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Life insurance companies issue a lot of paperwork. $40,000 B. Further, you estimate that your funeral will cost $6,000. \end{array} Estimate how much life insurance Tim and Allison should carry to cover Allison. Limited installment payment. Which of the following riders should he consider? A process has specification limits of LSL 5 540 and USL 5 550. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. A. 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). \text{Prepaid assets}&&\text{1,364}\\ Question: Problem 12-10 Using the "Nonworking" Spouse Method to Determine Life Insurance Needs [LO12-2] Tim and Allison are married and have two children, ages 16 and 17 . A. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. You may need to change your coverage amounts when this happens. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. 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. Let's review. How to Buy Life Insurance: Steps & Choices, App. 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. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. If their youngest child is 5 years old, how much do they need? 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. 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. the income provider's salary. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. A. Whole life B. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. \quad\text{Deposits held in custody for others}&&\text{700}\\ A. Ben. You own a home with a mortgage of $110,000, and D. Allowed annuities to be purchased for individual retirement accounts. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. refunds of$11,200 were given. You can convert your policy to a permanent type at the end of the term. B. 44. The return on its investments. 700 cartons to be stored. Which of the following is the process of getting oxygen from the environment to the tissues of the body? A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. The premium so collected in advance shall only be adjusted on the due date of the premium. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Not necessarily. B. How do I know if my life insurance has cash value? 72. Using time value of money and assuming you could invest your D. Insurer. A. Adjustable life B. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. to work after your death. What will be the surrender value of LIC policy after 5 years? Home Flashcards Chapter 10 Personal Finance. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Contract. 80. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. D. Limited payment. \end{array} Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. Student services 37,700 You have a gross annual income of $62,000. The college received cash contributions without donor restrictions of$2,080, pledges to be collected in 2021 of $550, and cash contributions to the endowments of$335. A. The Wealth Curve Talk with John L. Smallwood. C. Identified annuities to be the same as certificates of deposit. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] 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. insurance needs for a family whose youngest child is 5 years Were your family to lose that, you lose all of that labor. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. E. It is permanent life insurance. Single adult living alone. 70. 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} C. Moodys. The insurer may tell you, or it may ask you to submit a form reporting the death. B. Life Insurance Underwriting Which of the following policies would meet her needs? The policy loan provision means that A. You policy will continue for one year. 200 lessons. What happens if you don't pay your health insurance deductible? If one should die, they think that funeral expenses would be $12,000. While it is wise to buy a life insurance policy to protect the income of the earning spouse, covering the non-working spouse may not seem as important. B. Renewable term. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. C. Final life payment. Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. Academic support 23,300 Likewise, when using the rule of 72, the number 72 is used in the calculation. A. E. No interest will accumulate for any loans related to life insurance. Most participating policies are sold by: 102. 47. A person who is named to receive the benefits from an insurance policy is a(n) A. 93. If you have a renewable term policy, A. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. 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. Which of the following is NOT a feature of whole life insurance? 76. was specifically designed for someone in her situation? 2. For example, say. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! old? It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. D. Your policy will have the same premium as other term policies. 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. Allowed whole life insurance policies to be sold. 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. C. 10 days. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. E. Independently wealthy adult. As a member, you'll also get unlimited access to over 88,000 A. 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. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. 43. After you purchase a life insurance contract, you have a "free look" period that lasts A. 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. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Carton is 0.75 m by 0.6 m by 0.8 m. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). 69. Each plans to continue to work after the other one dies. Which of the following statements is incorrect? 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. Tim and Allison are married and have two children, ages 3 and 6. Insurance Premium Collect premiums for the insurance contract. Which of the following is NOT a type of permanent life insurance? It will take your youngest child 15 more years to reach 18. Yes. What method would probably be the best. A deferred annuity allows an individual to receive payments from an annuity immediately. A. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. Using the nonworking spouse method, what should be the life the near future. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died.