I would definitely recommend Study.com to my colleagues. How long is the grace period for health insurance policies with monthly due premiums? Of course, it would be a tragedy were something to happen to your spouse. Academic support 23,300 A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. 59. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Whole life B. 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. Something went wrong. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? B. 5 days. A. Waiver of premium disability benefit B. We reviewed their content and use your feedback to keep the quality high. Whole life. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Beneficiary. Straight life. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. 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. 80. Can non-working spouses qualify for a life insurance? The income replacement approach is a method of determining the amount of life insurance you should purchase. He has since died. \text{Liabilities:}\\ 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. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 A deferred annuity allows an individual to receive payments from a life insurance policy immediately. In many cases, the answer is yes. B. Multiyear level term. This problem has been solved! . Yes! Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. Insurance Premium 76. Cash value. One of our associate will call you back shortly. B. What kind of policy is he planning to purchase? If you want to purchase term insurance, you will receive all of the following except A. Related to the expenses incurred: prepaid assets of $534 were used,$4,776 of the expenses were accrued, and the remaining expenses were paid. A. 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. insurance needs for a family whose youngest child is 5 years To unlock this lesson you must be a Study.com Member. Welcome to the Wealth Curve Talk Podcast. The sooner a person is likely to die, the lower the premiums he or she will pay. B. This method is used only to calculate child care needs, not the total financial needs of the family. About ___ of the U.S. life insurance companies are stock companies. B. A. Waiver of premium disability benefit B. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. A. succeed. Which of the following life insurance policies should she apply for? There are many situations to consider, and the methods you just heard about may or may not fit your needs. You pay premiums each year for the rest of your life. 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. 25,00,000 which will remain same throughout the Policy Term. E. None of these is correct. Insurance needed. Pay off a mortgage. Group life B. E. Cash value life. C. Final life payment. 41. \quad\text{Unearned revenue}&&\text{900}\\ For example, say you're the only one working in your family and your youngest child is three. is =1.25\sigma = 1.25=1.25. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. 99. This method is called the non-working spouse method. Preserved the tax advantage of annuities but curtailed deductions for IRAs. C. Her contingent beneficiaries. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. 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. What is a Rider on a Life Insurance Policy? E. Pay taxes. 37. Institutional support 28,500. B. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). Your spouse expects to continue She may need to change her coverage as her needs change. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. A deferred annuity allows an individual to receive payments from an annuity at some future date. D. Term. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Term insurance for non-working spouse in India will be of great help. 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. B. is your life insurance need based on the easy method? She does not want to take a medical exam to get coverage because she has some underlying health conditions and is concerned that she might not qualify for a policy. C. The mortality rate it expects among its policy holders. Let us have a look at your work and suggest how to improve it! With the right term insurance policy in place, stay prepared for any adversity. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. 12-3 In other words, you will have to show why you want to insure the individual. A. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. Insurance Need: . 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. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. a. a way of calculating an inventory's value Competition among companies with comparable policies can affect the price a company charges for life insurance. Marianne and Roger are in good health and have reasonably secure careers. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. Steiner is a private college. 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. 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. NOT BANK GUARANTEED. C. Convertible term. E. Proceeds left with the company. This is a very common type of policy taken by homeowners who want to support their children financially. Which of the following riders should he consider? A. Use If you have a renewable term policy, A. 44. Fred bought life insurance five years ago. Course Hero is not sponsored or endorsed by any college or university. You heard about several methods you can use to calculate your life insurance needs. E. All of these. Using Exhibit 12-1, determine the average numbers of additional years males alive at fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o I highly recommend you use this site! Which method are they using to determine their life insurance needs? Find the factor on the chart where the nonworking spouse's age intersects with the working spouse's income from the column on the left 3. You have a spouse, two kids, a dog and a mortgage - a typical family. Factors That Affect Life Insurance Premiums old? She was recently divorced. Sell you the highest level of coverage available. 36. to work after your death. A. E. Your premium will be higher than a whole life policy premium. Which of the following policies would meet her needs? E. Weiss Research. 26. Buying from a financially strong company B. 27. E. It is permanent life insurance. Which of the following allows an individual to receive a fixed amount of income over a certain period of time, or over his or her life? Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. The Wealth Curve Talk with John L. Smallwood. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. Allison is a "nonworking" spouse who devotes all of her time to household activities. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. f. include taxes, storage fees, and handling costs, Purchasing a life insurance policy is a basic and inexpensive task, Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death, 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, Life insurance is a wise purchase of all individuals, The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets, The "Family Need" method of estimating life insurance includes factors such as social security and liquid assets, Decreasing term pays less to the beneficiary as time passes, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy, Competition among companies with comparable policies can affect the price a company charges for life insurance, An interest-adjusted index is a method evaluating the cost of life insurance by taking into accounting the time value of money, The lower the interest-adjusted index, the lower the cost for 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 most common settlement option for a life insurance program is the lump-sum payment, If you switch life insurance policies, you will automatically still be insurable, Annuities are more attractive for people who expect to live only a short time, The earnings from an investments in an annuity is taxed the same as earnings from an investment in the certificate of deposit, An administrative fee of $150 per year may be deducted to cover record-keeping and other administrative expenses related to a variable annuity, When you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically, If you have misplaced a life insurance policy, your state's insurance commission may be able to help you locate it, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. B. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. Further, you estimate that your funeral will cost $6,000. True. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card A. Adjustable life B. 73. C. Your premium will not increase because your policy is renewable. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Features of Life Insurance In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. A. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. Which of the following riders should she consider? age 35 may expect to live. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ \text{Tuition and fees receivable (net of doubtful accounts of \$12)}&&\text{230}\\ Which of the following households most likely has the greatest need for life insurance? For example, say. makes about $38,000 annually. e. a place in which to keep products until they are needed \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 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. You have no plans to increase the size of your family in Which method are they using to determine their life insurance needs? B. A. Ben. An individual can take out a loan on his or her term policy. D. Your policy will have the same premium as other term policies. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. You can convert your policy from permanent to term at any time. Sum Assured fixed at Rs. $13,000 B. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. method for him to use to calculate his insurance needs? Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. b. the number of each item you have in stock Your annual premium is $1,000. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = participating policy (dividends will be used to build up the cash value of the policy). Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). Please check your entries and try again. Create your account, 18 chapters | 79. A. 97. copyright 2003-2023 Study.com. Todd plans to purchase a life insurance policy from a stock life insurance company. D. The beneficiary can borrow any amount up to the total benefit. See Answer Jeanne wants to purchase a life insurance policy with guaranteed premiums. A. Its like a teacher waved a magic wand and did the work for me. 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? $4,000. C. Retired couple with a pension. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ Investors in the Scheme are not being offered any guaranteed / assured returns. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI 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. Collect premiums for the insurance contract. Anita is a "nonworking" spouse who devotes all of her time to household activities. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. Which method are they using to determine their life insurance needs? 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. Call the State Commissioner's Office for your State. Straight life C. Ordinary life D. Term life E. Cash value life. You may not purchase insurance once your term ends. B. C. A life insurance policy allows an individual to receive payments from an annuity at once. 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. Protect the people who depend on the insured from financial losses caused by his or her death. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. You can get your paper edited to read like this. Is life insurance for married couples cheaper? A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. This term life policy will guarantee that you will pay the same premium for the duration of your policy. 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. It will take your youngest child 15 more years to reach 18. Tim and Allison are married and have two children, ages 3 and 6. Multiply the number of years until the youngest child reaches 18 by $10,000. C. Final life payment. 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. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Types of Life Insurance They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. You are the wage earner in a typical family, with $55,000 gross annual income. What are the stages of the General Adaptation Syndrome (GAS)? 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.
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