This problem has been solved! Your needs will also change over time, so your life insurance needs may also change over time. 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. Using the DINK method, what should be your need for life insurance? a. a way of calculating an inventory's value Insurance Need: ? \textbf{Liabilities and Net Assets}\\ Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. 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. Solved Using the "nonworking" spouse method, what should be - Chegg This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. Jeff and Erica have two children. 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. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. 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. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. Chapter 10 True False Flashcards | Quizlet 401(k) plans. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Read this lesson to learn what methods you can use to calculate your requirements. All rights reserved. Claim Settlement Ratio C. Tell you why her product is better than the competitors. It equals the cost of replacing the property. insurance needs for a family whose youngest child is 5 years In most cases in India, the non-working spouse is a woman and it may be unimaginable to account for the financial implications in case of their absence, keep aside the emotional damage. If their youngest child is 5 years old, how much do they need? Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. Molly is thinking about buying a life insurance policy, but she is not sure about how much she will need in the next few years. A. Which of the following riders should he consider? You pay premiums each year for the rest of your life. Exam 3 Flashcards by Sam Cohen | Brainscape Jeff Willis has five kids and more debt than the, average family. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ Need for a Life Insurance for the Non-Working Spouse - Canara HSBC Life What. 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. Your premium may increase if you continue it for another term because you will be older. Fell free get in touch with us via phone or send us a message. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. Allison is a "nonworking" spouse who devotes all of her time to household activities. The death benefit will be increased by the amount of an outstanding policy loan. 68. The spouse who has to stay at home, looking after the children, cooking, and supporting the family often has a more tiresome job to do, than the working spouse. What is your life insurance need using the DINK method? The last thing to realize is that calculating your life insurance needs can be tricky. D. The policy features. 42. E. Made all annuities tax free. You and your spouse are in good health and have reasonably secure jobs. 35. 93. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. This is a method that has you adding half of all your debts plus funeral expenses. Wendy has had a life insurance policy for five years. D. 30 days. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. The maturity benefit in form of a lumpsum benefit equal to Rs.33,19,055 is paid at the end of the 20th year, provided the policy is in-force and all due premiums have been paid. 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. $30,000 B. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. She, wants to determine her insurance needs. How much storage space is required? Which of the following statements is correct? C. Final life payment. What is the most important part of an insurance agents job? Using the nonworking spouse method what should be the life insurance C. The policy owner can borrow any amount up to the cash value of the policy. The sooner a person is likely to die, the lower the premiums he or she will pay, Life expectancy for men is longer than that for women. Carton is 0.75 m by 0.6 m by 0.8 m. Estimate how much life insurance Tim and Allison should carry to cover Allison. Amy has a master's degree in secondary education and has been teaching math for over 9 years. To unlock this lesson you must be a Study.com Member. Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Which of the following households most likely has the greatest need for life insurance? C. Final life payment. All guarantees are based on the continued claims paying ability of the issuing company. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o They have determined that their annual income is $70,000 and their net worth is now $150,000. This next method is for those with just one wage earner in the family. You may not purchase insurance once your term ends. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. B. 37. A. What is Life Insurance? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. The recommendation is to have seven to ten years of life insurance. Best Investment Options in India 36. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Shaan and anita are married and have two children, ages 9 and - Brainly Group life C. Limited life D. Universal life E. Variable life, 51. Maximum amount that can be claimed as deduction for education loan, How to File ITR for Income under 2.5 Lakh, How to Reduce Tax Liability with Term Insurance, Know the Tax Benefit on Saving for Retirement, Need for a Life Insurance for the Non-Working Spouse, Making claim settlement easy for your beneficiaries, How has the occurrence of covid-19 affected insurance in INDIA, Factors That Affect Life Insurance Premiums, Reasons for Life Insurance Claim Rejection, Unclaimed Amount Movement To-senior Citizens Welfare Fund. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. Limited installment payment. E. None of these is correct. to work after your death. But from a financial perspective, it does not have to be a crisisif you have good planning. Most people buy life insurance to A. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. C. Her contingent beneficiaries. 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. 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. Using the nonworking spouse method, what should be the life There are many situations to consider, and the methods you just heard about may or may not fit your needs. Enrolling in a course lets you earn progress by passing quizzes and exams. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ 5 days. In other words, you will have to show why you want to insure the individual. Amy has worked with students at all levels from those with special needs to those that are gifted. Preserved the tax advantage of annuities but curtailed deductions for IRAs. Which of the following is the process of getting oxygen from the environment to the tissues of the body? 99. True. Life expectancy for men is longer than that for women. B. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). They plan to purchase life insurance using this formula: (18 Youngest childs age) $10,000. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. The insurer may tell you, or it may ask you to submit a form reporting the death. T&C Apply. If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. What method. 26. 25. This method is used only to calculate child care needs, not the total financial needs of the family. B. Annuity Formula, Calculation & Examples | What is an Annuity? Insurance Need: . A. Adjustable life B. Georgia was supposed to pay her premium by the 15th of the month. Another name for temporary life insurance is A. She may need to change her coverage as her needs change. A. A. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? A. TERMS OF SERVICE The income replacement approach is a method of determining the amount of life insurance you should purchase. Single adult living alone. C. 10 days. Work with our consultant to learn what to alter. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. Variety of Fund Options and Portfolio Management Strategies, Loyalty Additions + Wealth Boosters + Return of Mortality Charges, Optional In-built covers to enhance coverage, Policy Term of 1 year or less than 1 year. A deferred annuity allows an individual to receive payments from an annuity at some future date. Let's review. This is a very common type of policy taken by homeowners who want to support their children financially. determine the minimum amount of life insurance you should carry. 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. A. Further, you estimate that your funeral will cost $6,000. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D A. Waiver of premium disability benefit B. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. Ask to set up a Wealth Curve conversation. Multiply the income . Table lamp. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. 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. Life income option. For a non-Working Spouse. 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. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. 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. 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. One of our associate will call you back shortly. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. This website helped me pass! How to Estimate Life Insurance Requirements - Study.com 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. E. None of these is correct. This gives you 7 years of wages at 70%. There are many life circumstances you need to consider, but depending on your circumstances, there are different methods you can use to figure out your life insurance coverage requirement. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ 96. Steiner is a private college. 82. Which of the following is a poor choice for the amount of protection offered for an individual? This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Estimate how much life insurance Tim and Allison should carry. B. Bens beneficiaries. The Wealth Curve Talk with John L. Smallwood. Call the State Commissioner's Office for your State. 46. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. method, what should be your need for life insurance? \textbf{Statement of Financial Position}\\ the near future. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. 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. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. b. the number of each item you have in stock 66. The premium shall be adjusted on the due date even if it has been received in advance. . The cholesterol level in children follows a normal distribution with a mean level of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL and a standard deviation of 35mg/dL35 \mathrm{mg} / \mathrm{dL}35mg/dL. 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? Collections on Tuition and Fees Receivable totaled$222,600. 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. E. Proceeds left with the company. Which of the following policies would meet her needs? The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. E. No interest will accumulate for any loans related to life insurance. E. Your premium will be higher than a whole life policy premium. Here's how to calculate the estimated life insurance need: 1. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. $86,000 C. $98,000 D. $172,000 E. $217,000. 27. Answer: 111, Using the "nonworking" spouse method, what should be the life insurance needs for a nonworking spouse whose youngest child is 5 years old? E. Cash value life. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = Using the easy C: Consumer Agencies & Organizations, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, How to Choose a College: Guidance Counseling, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Certificate Program, Effective Communication in the Workplace: Help and Review, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Intro to Excel: Essential Training & Tutorials, Information Systems and Computer Applications: Certificate Program, GED Social Studies: Civics & Government, US History, Economics, Geography & World, What is Whole Life Insurance?
