Certificates of deposit. E. Made all annuities tax free. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. For example, say you have a remaining mortgage of $30,000, a credit card balance of $11,000, and a personal loan of $5,000. What is the most important part of an insurance agents job? E. Your premium will be higher than a whole life policy premium. $140,000 B. Jumping the Wealth Curve with Edward E. Bao Jr. 70. What is the amount of life insurance they should carry using the easy method? 5 days. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Whole life. insurance needs for a family whose youngest child is 5 years - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. 25. Its like a teacher waved a magic wand and did the work for me. C. A life insurance policy allows an individual to receive payments from an annuity at once. . Limited installment payment. 2003-2023 Chegg Inc. All rights reserved. A. copyright 2003-2023 Study.com. The most common settlement option for a life insurance program is the lump-sum payment. C. The mortality rate it expects among its policy holders. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} Donald and Charlene are married and do not have any children. What. 24. But life insurance rates can vary dramatically among applicants, insurers and policy types. 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. C. Policyholder. 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. 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. 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? Home Flashcards Chapter 10 Personal Finance. How to Buy Life Insurance: Steps & Choices, App. This is a method that has you adding half of all your debts plus funeral expenses. 2. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. Wendy has had a life insurance policy for five years. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Which of the following provisions should she take action on? 25,00,000 which will remain same throughout the Policy Term. Which of the following products allows an individual to receive payments beginning now? All other trademarks and copyrights are the property of their respective owners. \textbf{(amounts in thousands)}\\ A. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. Of the following, which one is the most positive feature of whole life insurance? 71. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. E. An insurance company will calculate the annual amounts to pay each person for an annuity. Which of the following provisions will affect the amount of money his beneficiaries will receive? Using Exhibit 12-1, determine the average numbers of additional years males alive at . Pay off a mortgage. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] What happens if you dont get life insurance? A. Waiver of premium disability benefit B. 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. Net deposits returned to students totaled $10. Georgia was supposed to pay her premium by the 15th of the month. Protection against loss of life for a specified term. 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. A. Which method are they using to determine their life insurance needs? D. Term life insurance plans. PK ! is =1.25\sigma = 1.25=1.25. To Buy: 1800-258-5899 (9:30 AM to 6:30 PM), For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003, Managing Director & Chief Executive Officer. In other words, you will have to show why you want to insure the individual. Ag;sE2/yNNF;eF]!hiV^r^l PK ! 42. Amy has a master's degree in secondary education and has been teaching math for over 9 years. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. Can you get life insurance on a spouse? Using the DINK method, what should be your need for life insurance? One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! A. Ben. \textbf{June 30, 2019}\\ Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 1. A. Adjustable life B. Another name for a straight term policy is A. Renewable term. The income replacement approach is a method of determining the amount of life insurance you should purchase. TERMS OF SERVICE D. Insurer. 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. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Which of the following is the process of getting oxygen from the environment to the tissues of the body? Single adult living alone. DESIGNED BY: INTERSOFT ASSOCIATES. 46. Jeff and Erica have two children. old? Who will receive the benefits from her policy? For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. 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. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. Table lamp. Which of the following riders should he consider? determine the minimum amount of life insurance you should carry. 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. 25% C. 50% D. 75% E. 95%, 32. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. 68. What impact do they have on your wealth potential. E. Proceeds left with the company. It will take your youngest child 15 more years to reach 18. Which method are they using to determine their life insurance needs? Using the DINK method, what should be your need for life insurance? B. Multiyear level term. E. None of these is correct. What is Life Insurance? A. In case of death of the Life Assured during the Policy Term, Sum Assured on Death basis the Coverage option opted, less cumulative monthly income(s) already paid shall be payable. 80. 44. Your spouse expects to continue It will have a lower coverage amount and a waiting period (usually 2 year). [Content_Types].xml ( Y0}GM 79. You may not purchase insurance once your term ends. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. To unlock this lesson you must be a Study.com Member. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. The last thing to realize is that calculating your life insurance needs can be tricky. If you switch life insurance policies, you will automatically still be insurable, Annuities are most beneficial for individuals who expect to live only a short time, An investment in an annuity is the same as an investment in a certificate of deposit, Tuitionandfeesreceivable(netofdoubtfulaccountsof$12), Pledgesreceivable(netofdoubtfulaccountsof$280), Property,plan,andequipment(netofaccumulateddepreciationof$104,240), Investments(atfairvalue,costof$162,000), Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. 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. Marianne and Roger are in good health and have reasonably secure careers. The premiums & funds are subject to certain charges related to the fund or to the premium paid. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. E. Convince you to buy the policy that will pay her the highest commission. 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. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. When using the rule of 70, the number 70 is used in the calculation. A. 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. D. A fixed annuity is one where the investments made into the annuity are variable. 82. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. All rights reserved. All guarantees are based on the continued claims paying ability of the issuing company. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ C. The policy owner can borrow any amount up to the cash value of the policy. - 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? Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. D. Your policy will have the same premium as other term policies. C. Identified annuities to be the same as certificates of deposit. A. We look forward to speaking with you. 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. You can convert your policy to a permanent type at the end of the term. Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). E. None of these is correct. C. Ordinary life. E. 60 days. Use Exhibit 1-B. Answer . Amy has worked with students at all levels from those with special needs to those that are gifted. Factors That Affect Life Insurance Premiums 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. Preserved the tax advantage of annuities but curtailed deductions for IRAs. Anita is a "nonworking" spouse who devotes all of her time to household activities. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ C. Administrative fee. 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. Whole life B. 43. Diffusion Let us complete them for you. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. 99. Megan wants to purchase a life insurance policy that will allow her to invest in stock. Let's review. $30,000 B. B. A. Using the DINK method, what should be your need for life insurance? The maturity benefit is Rs. 93. Your annual income is $100,000. 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. About ___ of the U.S. life insurance companies are stock companies. What is the cost of living in California? A. Which method are they using to determine their life insurance needs? It equals the cost of replacing the property. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. Is life insurance for married couples cheaper? B. You can get your paper edited to read like this. E. Independently wealthy adult. 26. Beneficiary. After you purchase a life insurance contract, you have a "free look" period that lasts A. Which of the following life insurance policies should she apply for? Experts are tested by Chegg as specialists in their subject area. 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. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 An immediate annuity allows an individual to receive payments from an annuity beginning at once. Easy method C. DINK method D. Family need E. Soccer mom 95. Under this method, the original principal that you save will still remain at the end of the income period. Estimate how much life insurance Tim and Allison should carry. E. The policy requires that you pay a specified premium each year for the rest of your life. The first method is called the easy method. 3 days. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). Which of the following statements is correct? Annuity Formula, Calculation & Examples | What is an Annuity? The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. The first is the easy method. D. You can convert your policy to a permanent type at the end of the term. refunds of$11,200 were given. The question is, how big are yours? succeed. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. $4,000. Can I stay on my parents insurance if I file taxes independently? 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. $40,000 B. A. Adjustable life B. A. Surrender charge. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? 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. NOT FDIC INSURED. 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. Ask to set up a Wealth Curve conversation. $50,000 C. $80,000 D. $100,000 E. $180,000 B. 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. D. Her parents. Fell free get in touch with us via phone or send us a message. If one should die, they think that funeral expenses would be $12,000. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. Please consult your independent tax advisor for details. B. 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. You have no other debt. 74. 37. Which of the following riders should she consider? D. Decreasing term. Best Investment Options in India B. D. Life income option. Estimate how much life insurance Shaan and Anita should carry. 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. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. False. For example, say. participating policy (dividends will be used to build up the cash value of the 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. 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. Judy and James have a 4-year-old child. \textbf{Assets}\\ Group life B. False. 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.

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