Which of the following statements is correct? 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. old? We look forward to speaking with you. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. 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. In contrast to the biopsychosocial model, the biomedical model views health as ___________. Yes! 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. Likewise, when using the rule of 72, the number 72 is used in the calculation. The premium shall be adjusted on the due date even if it has been received in advance. 46. Can someone be denied homeowners insurance? 66. Everyone is impacted by these 5 problems. Contract. Competition among companies with comparable policies can affect the price a company charges for life insurance. 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. 67. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI 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. 93. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. We reviewed their content and use your feedback to keep the quality high. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. If you have a renewable term policy, A. What is their total insurance need using the DINK method? Instruction$86,100 99. Using the easy 73. The first method is called the easy method. nonworking spouse whose youngest child is 6 years old? C. Convertible term. 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. Insurance Need: . With the right term insurance policy in place, stay prepared for any adversity. 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. \textbf{STEINER COLLEGE}\\ Most participating policies are sold by: 102. If you have a multiyear level term policy, A. The insurer may tell you, or it may ask you to submit a form reporting the death. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, Now, you take this number and subtract your available assets from this number. 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. Its like a teacher waved a magic wand and did the work for me. Your annual income is $100,000. This is a method that has you adding half of all your debts plus funeral expenses. This method is meant for those with typical families where both spouses work, are in good health, with average debt, and with no more than three kids. D. Spend money. Your premium will not increase when you renew it. A. Riders in Insurance Cash value. Frank, age 38, was hit by a car and died. Academic support 23,300 D. A fixed annuity is one where the investments made into the annuity are variable. 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. Which of the following provisions should she take action on? C. Temporary insurance. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. A. \textbf{Assets}\\ What method would probably be the best. determine the minimum amount of life insurance you should carry. 27. You can convert your policy to a permanent type at the end of the term. Term insurance B. 75. \quad\text{Unearned revenue}&&\text{900}\\ DINK stands for double income, no kids. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. Pay off a mortgage. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. This method is used only to calculate child care needs, not the total financial needs of the family. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. A. Adjustable life B. The timing for payments of a variable annuity are variable. Limited installment payment. D. Allowed annuities to be purchased for individual retirement accounts. Fixed Annuities are long-term insurance products. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. Ask to set up a Wealth Curve conversation. Investors in the Scheme are not being offered any guaranteed / assured returns. Which method are they using to determine their life insurance needs? Which of the following riders should she consider? A. The process standard deviaton Your premium may increase if you continue it for another term because you will be older. 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. Jeanne wants to purchase a life insurance policy with guaranteed premiums. A. In this episode, John continues his series on the. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o 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? What is your life insurance need using the DINK method? 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 monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. She, wants to determine her insurance needs. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. Not necessarily. 82. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Whole life. DINK stands for double income, no kids. Using the DINK method, what should be your need for life insurance? At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. You are the wage earner in a typical family, with $55,000 gross annual income. The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs.10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. But from a financial perspective, it does not have to be a crisisif you have good planning. A deferred annuity allows an individual to receive payments from an annuity immediately. D. Life income option. $140,000 B. The maturity benefit is Rs. 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. Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Watch on to see what they are. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. 78. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? Carton is 0.75 m by 0.6 m by 0.8 m. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. Cross), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Psychology (David G. Myers; C. Nathan DeWall), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Give Me Liberty! 401(k) plans. 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} Life expectancy for men is longer than that for women. D. It builds cash value. As a member, you'll also get unlimited access to over 88,000 38. Time Value of Money Formula & Examples | What is Time Value of Money? E. The policy requires that you pay a specified premium each year for the rest of your life. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. A. A. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} This is also the most thorough method. What is the amount of life insurance they should carry using the easy method? Course Hero is not sponsored or endorsed by any college or university. Which of the following is NOT temporary insurance? 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. Your rates will vary based on your unique circumstances, just as they would if you were single. B. Mortality and expense risk charge. This problem has been solved! TERMS OF SERVICE Steiner is a private college. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. A. Waiver of premium disability benefit B. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. E. It is permanent life insurance. Lastly, it allows you to keep your future obligations: college, paying off debts, weddings, bar mitzvahs and bat mitzvahs, sweet sixteens, and all the other things that you want to do for your kids. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. E. Proceeds left with the company. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. Futures Contract in Finance Purpose & Examples | What Are Futures? Judy and James have a 4-year-old child. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card You heard about several methods you can use to calculate your life insurance needs. 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. is your life insurance need based on the easy method? 58. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. 12-3 Your spouse expects to continue to work after your death. $12,000 in 15 years. 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. \quad\text{Deposits held in custody for others}&&\text{700}\\ 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. C. Moodys. 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. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. What kind of policy would she want to purchase? Allison is a "nonworking" spouse who devotes all of her time to household activities. C. Decreasing term. 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).