It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). When you're ready to purchase life insurance, you'll need to decide what coverage amount you need so that all your financial obligations and needs are met upon your death. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 5% B. Can non-working spouses qualify for a life insurance? This gives you 7 years of wages at 70%. Life Insurance What happens if you dont get life insurance? You own a home with a mortgage of $110,000, and PK ! D. Life income option. C. Pay for a vacation. 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. the near future. Which method are they using to determine their life insurance needs? B. Multiyear level term. What is the amount of life insurance they should carry using the "nonworking" spouse method? You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. Investors in the Scheme are not being offered any guaranteed / assured returns. 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. C. The policy owner can borrow any amount up to the cash value of the policy. \quad\text{Deposits held in custody for others}&&\text{700}\\ The premium so collected in advance shall only be adjusted on the due date of the premium. This method is used only to calculate child care needs, not the total financial needs of the family. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. A. 68. Further, you estimate that your funeral will cost $6,000. What method would probably be the best. Ask to set up a Wealth Curve conversation. 25% C. 50% D. 75% E. 95%, 32. 75. I highly recommend you use this site! Sum Assured fixed at Rs. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. Which of the following statements is incorrect? If their youngest child is 5 years old, how much do they need? Carton is 0.75 m by 0.6 m by 0.8 m. 40. 12-3 58. You have to drive them to and from school, oversee homework and music practice. old? Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. Diffusion Let us complete them for you. A. There's no one-size-fits-all answer to this because every family is different, but a 15- to 20-year policy between $250,000400,000 is a general rule. Insurance needed. The maturity benefit is Rs. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. A. What is non working spouse method? - InsuredAndMore.com A. 81. participating policy (dividends will be used to build up the cash value of the policy). B. Net deposits returned to students totaled $10. D. It builds cash value. A. Ben. Multiply the income . \textbf{Statement of Financial Position}\\ You pay premiums each year for the rest of your life. 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. With the right term insurance policy in place, stay prepared for any adversity. Which of the following households most likely has the greatest need for life insurance? Buying from a financially strong company B. Single adult living alone. Which of the following is a charge you will pay when you purchase a variable annuity? Everyone is impacted by these 5 problems. 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. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Benefits of Life Insurance The insurer may tell you, or it may ask you to submit a form reporting the death. the easy method to determine how much life insurance you should carry. The death benefit will be increased by the amount of an outstanding policy loan. You can take out a life insurance policy on your spouse if you have an insurable interest. 24. You are the wage earner in a typical family, with $55,000 gross annual income. A. 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. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. What is the cost of living in California? Beneficiary. $12,000 in 15 years. 4.Tax benefit of Rs. But life insurance rates can vary dramatically among applicants, insurers and policy types. C. Administrative fee. Straight life. $30,000 B. Adult child living with parents. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. You must pay interest on any loans. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. 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 . D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Your premium will not increase when you renew it. 60. 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. Anita is a "nonworking" spouse who devotes all of her time to household activities. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. DINK stands for double income, no kids. True The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets False Mutual life insurance companies specialize in the sale of nonparticipating policies False This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. D. Insurer. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. The recommendation is to have seven to ten years of life insurance. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. See Answer \end{array} Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Likewise, when using the rule of 72, the number 72 is used in the calculation. Term insurance for non-working spouse in India will be of great help. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. E. The policy requires that you pay a specified premium each year for the rest of your life. Using the nonworking spouse method, what should be the life insurance needs for a Jeff Willis has five kids and more debt than the, average family. E. 60 days. In many cases, the answer is yes. Try refreshing the page, or contact customer support. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. What kind of policy would she want to purchase? Quickly and professionally. 25,00,000 which will remain same throughout the Policy Term. Which of the following provisions will affect the amount of money his beneficiaries will receive? We are living in times of uncertainty. insurance needs for a family whose youngest child is 5 years Were your family to lose that, you lose all of that labor. The sooner a person is likely to die, the lower the premiums he or she will pay. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. E. A policy whose coverage stops after a period of time. Group life C. Limited life D. Universal life E. Variable life, 51. Shaan and Anita are married and have two children, ages 4 and 7. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Which of the following policies would meet her needs? E. None of these. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. \textbf{Liabilities and Net Assets}\\ They have determined that their annual income is $70,000 and their net worth is now $150,000. Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. 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. It also collected $820 of Pledges Receivable that were unrestricted. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. Tim and Allison are married and have two children, ages 4 and 7. E. Cash value life. It will have a lower coverage amount and a waiting period (usually 2 year). \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. You may not purchase insurance once your term ends. 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. C. Individual retirement accounts (IRAs). to work after your death. A. 42. But from a financial perspective, it does not have to be a crisisif you have good planning. loans. Easy method C. DINK method D. Family need E. Soccer mom 95. the income provider's salary. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Which of the following is NOT important when buying life insurance? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. 2003-2023 Chegg Inc. All rights reserved. A. 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. Estimate how much life insurance Tim and Allison should carry. This is a very common type of policy taken by homeowners who want to support their children financially. Non-Working Spouse Method. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. False. refunds of$11,200 were given. B. The last thing to realize is that calculating your life insurance needs can be tricky. E. Proceeds left with the company. They have determined that their annual income is $70,000 and their net worth is now $150,000. 2. A. B. Past performance of the investment funds do not indicate the future performance of the same. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ B. 69. Which of the following riders should he consider? Enrolling in a course lets you earn progress by passing quizzes and exams. Your premium may increase if you continue it for another term because you will be older. A. E. Your premium will be higher than a whole life policy premium. Your rates will vary based on your unique circumstances, just as they would if you were single. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Whole life B. 41. E. It is permanent life insurance. Which of the following is the process of getting oxygen from the environment to the tissues of the body? 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. How do I know if my life insurance has cash value? was specifically designed for someone in her situation? NOT INSURED BY ANY STATE OR FEDERAL AGENCY. All other trademarks and copyrights are the property of their respective owners. NOT BANK GUARANTEED. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? 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. old? 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. D. Fund expense. Yes! Each earns $45,000 annually. 78. Futures Contract in Finance Purpose & Examples | What Are Futures? Group life B. This next method is for those with just one wage earner in the family. Experts are tested by Chegg as specialists in their subject area. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, determine the minimum amount of life insurance you should carry, the easy method to determine how much life insurance you should carry. Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year However, where the premium due in a financial year is being collected in previous financial year, the premium may be collected for a maximum period of three months in advance of the due date of the premium. 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. How long is the grace period for health insurance policies with monthly due premiums? . Let's review. C. 10 days. This website helped me pass! B. Shaan and anita are married and have two children, ages 9 and - Brainly Fixed annuity B. 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. This method is called the non-working spouse method. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. 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. Protect the people who depend on the insured from financial losses caused by his or her death. Its like a teacher waved a magic wand and did the work for me. Preserved the tax advantage of annuities but curtailed deductions for IRAs. \textbf{STEINER COLLEGE}\\ What will be the surrender value of LIC policy after 5 years? Which of the following statements is correct? D. Household with children. A. AssetsCashandcashequivalentsShort-terminvestmentsTuitionandfeesreceivable(netofdoubtfulaccountsof$12)Pledgesreceivable(netofdoubtfulaccountsof$280)PrepaidassetsProperty,plan,andequipment(netofaccumulateddepreciationof$104,240)Investments(atfairvalue,costof$162,000)TotalassetsLiabilitiesandNetAssetsLiabilities:AccountspayableandaccruedliabilitiesDepositsheldincustodyforothersUnearnedrevenueBondspayableTotalliabilitiesNetassets:WithoutdonorrestrictionsWithdonorrestrictionsTotalnetassetsTotalliabilitiesandnetassets$104,000229,940$7347,6662305,8721,364281,404158,400$455,670$21,13070090099,000127,730333,940$455,670. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, Please consult your independent tax advisor for details. Estimate how much life insurance Tim and Allison should carry. Riders in Insurance insurance needs for a family whose youngest child is 5 years Answer . Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments.