Allison is a "nonworking" spouse who devotes all of her time to household activities. Using Exhibit 12-1, determine the average numbers of additional years males alive at The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. Pay off a mortgage. On occurrence of first death or diagnosis of terminal illness, to either of you, the sum assured on death corresponding to the affected life is paid and the policy continues with life cover for the other life with reduced premium. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Which method are they using to determine their life insurance needs? . Allowed whole life insurance policies to be sold. $40,000 B. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. E. Independently wealthy adult. A. 66. What happens if you don't pay your health insurance deductible? This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. You have no plans to increase the size of your family in All guarantees are based on the continued claims paying ability of the issuing company. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] In contrast to the biopsychosocial model, the biomedical model views health as ___________. A. B. 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. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. 38. Most people buy life insurance to A. What percentage of your income should you spend on life insurance? Tim and Allison are married and have two children, ages 3 and 6. The Policy will terminate after payment of this benefit. But from a financial perspective, it does not have to be a crisisif you have good planning. D. Spend money. D. You must pay interest on any outstanding policy loans. \textbf{STEINER COLLEGE}\\ Collect premiums for the insurance contract. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? B. 39. 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. Plus, get practice tests, quizzes, and personalized coaching to help you Term insurance for non-working spouse in India will be of great help. 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. 47. All other trademarks and copyrights are the property of their respective owners. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. nonworking spouse whose youngest child is 5 years old? a. a way of calculating an inventory's value B. - 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? They have determined that their annual income is $70,000 and their net worth is now $150,000. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. 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. Sum Assured fixed at Rs. Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. 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. A. Adjustable life B. How much term does a non-working spouse get? 42. Which of the following is NOT important when buying life insurance? Multiply the income . $12,000 B. Contract. \end{array} E. Proceeds left with the company. The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. 401(k) plans. Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited. Which method are they using to determine their life insurance needs? Benefits of Life Insurance D. A fixed annuity is one where the investments made into the annuity are variable. A. Waiver of premium disability benefit B. 80. E. Whole life insurance plans. Carton is 0.75 m by 0.6 m by 0.8 m. 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? Molly is thinking about buying a life insurance policy, but she is not sure about how much she will need in the next few years. C. It is more expensive than term insurance. C. Pay for a vacation. Group life C. Limited life D. Universal life E. Variable life, 50. 2003-2023 Chegg Inc. All rights reserved. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. 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. B. Everyone is impacted by these 5 problems. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. False. Group life B. The cash value of the policy is expected to be lessons in math, English, science, history, and more. \textbf{June 30, 2019}\\ This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. The investment risk in investment portfolio is borne by the policyholder. Annuities are often purchased for A. 101. C. Administrative fee. Factors That Affect Life Insurance Premiums NOT INSURED BY ANY STATE OR FEDERAL AGENCY. \end{array} Which of the following is NOT a feature of whole life insurance? The recommendation is to have seven to ten years of life insurance. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. D. Household with children. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. B. \text{Short-term investments}&&\text{7,666}\\ 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. 70. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Preserved the tax advantage of annuities but curtailed deductions for IRAs. C. You can convert your term policy to a permanent policy. 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. E. 60 days. Donald and Charlene are married and do not have any children. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. C. Her contingent beneficiaries. A.M. Best. If you want to purchase term insurance, you will receive all of the following except A. 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. 79. A. Which of the following households most likely has the greatest need for life insurance? C. 10 days. Sell you the highest level of coverage available. Can you buy life insurance for someone who is dying? Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. This is a very common type of policy taken by homeowners who want to support their children financially. Endowment Plans A. But life insurance rates can vary dramatically among applicants, insurers and policy types. 93. Is equipment floater the same as inland marine? Another name for a straight term policy is A. Renewable term. B. Using the DINK method, what should be your need for life insurance? A. Fred bought life insurance five years ago. 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. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. E. None of these is correct. Ag;sE2/yNNF;eF]!hiV^r^l PK ! Another name for permanent life insurance is A. Were your family to lose that, you lose all of that labor. Using the nonworking spouse method, what should be the life is =1.25\sigma = 1.25=1.25. It will have a lower coverage amount and a waiting period (usually 2 year). 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. Which of the following riders should he consider? The death benefit will be increased by the amount of an outstanding policy loan. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Experts are tested by Chegg as specialists in their subject area. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. 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. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. Use the multiple of income method to Amy bought a life insurance policy and named Ben as her beneficiary. 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 capital retention method is a method of determining the amount of life insurance needed by using an interest-only model to support your family. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 B. Renewable term. \text{Net assets:}\\ The first method is called the easy method. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ How to estimate life insurance requirements for a non working spouse? \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ PK ! 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. 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. He has since died. d. 28. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. One of our associate will call you back shortly. 72. A. Sum Assured fixed at Rs. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. C. Final life payment. 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. Sum Assured as chosen by the Working Spouse under the Plan. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. In many cases, the answer is yes. Quickly and professionally. This method is called the non-working spouse method. D. Term life insurance plans. C. Temporary insurance. This method is used only to calculate child care needs, not the total financial needs of the family. $140,000 B. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ $196,000 C. $280,000 D. $400,000 E. $430,000, 83. Fixed Annuities are long-term insurance products. Using time value of money and assuming you could invest your Home Flashcards Chapter 10 Personal Finance. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. But from a financial perspective, it does not have to be a crisisif you have good planning. Let's review. If you have a conversion term policy, A. 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 Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. Please consult your independent tax advisor for details. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. True. Limited installment payment. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. Or, you can call us at (800) 797-1000. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? 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. 78. Amy has a master's degree in secondary education and has been teaching math for over 9 years. It equals the cost of replacing the property. This is a method that has you adding half of all your debts plus funeral expenses. A person who is named to receive the benefits from an insurance policy is a(n) A. 1. 43. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. E. None of these is correct. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. Frank, age 38, was hit by a car and died. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ And a term insurance cover for house makers, non-working spouses, or say a housewife, proves helpful exactly here, ensuring your family tides over the financial damages in case something unfortunate happens. Your spouse expects to continue If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. Georgia was supposed to pay her premium by the 15th of the month. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Life insurance is a wise purchase of all individuals. The maturity benefit is Rs. A. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. A deferred annuity allows an individual to receive payments from an annuity at some future date. Group life C. Limited life D. Universal life E. Variable life, 51. A. They plan to purchase life insurance using this formula: Current income 7 70%. C. Retired couple with a pension. c. the charge per 100 pounds to ship goods by truck You are the wage earner in a typical family, with $55,000 gross annual income. This problem has been solved! A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. Can non-working spouses qualify for a life insurance? E. All of these. Past performance of the investment funds do not indicate the future performance of the same. Its free, with no obligation. Which statement is correct regarding mutual life. B. You can convert your policy to a permanent type at the end of the term. Net deposits returned to students totaled $10. 26. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} Can someone be denied homeowners insurance? 25,00,000 which will remain same throughout the Policy Term. 25,00,000 which will remain same throughout the Policy Term. determine the minimum amount of life insurance you should carry. 81. B. Your premium will not increase when you renew it. False. C. Final life payment. E. Credit life. Estimate how much life insurance Tim and Allison should carry to cover Allison. She was recently divorced. Your spouse expects to continue to work after your death. 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 . Something went wrong. D. The beneficiary can borrow any amount up to the total benefit. Course Hero is not sponsored or endorsed by any college or university. Jumping the Wealth Curve with Edward E. Bao Jr. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Your annual income is $60,000. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. You must pay interest on any loans. All rights reserved. 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. Of course, it would be a tragedy were something to happen to your spouse. I highly recommend you use this site! C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). 24. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. A. Do both you and your spouse need life insurance? E. Weiss Research. method, what should be your need for life insurance? 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. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. Types of Life Insurance Such advance premium, if any, paid by the Policyholder shall not carry any interest. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card Best Investment Options in India Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. A. Can you get life insurance on a spouse? Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Shaan and Anita are married and have two children, ages 4 and 7. Further, you estimate that your funeral will cost $6,000. D. Fund expense. When using the rule of 70, the number 70 is used in the calculation. 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} A. Collections on Tuition and Fees Receivable totaled$222,600. 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. Riders in Insurance Claim Settlement Ratio What impact do they have on your wealth potential. Which of the following policies would meet her needs? \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. False. The first is the easy method. 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. It provides both a death benefit and a savings component. A. Ben. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Which of the following provisions should she take action on? Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time).