nonworking spouse whose youngest child is 5 years old? Life insurance is a wise purchase of all individuals. We look forward to speaking with you. Sum Assured as chosen by the Working Spouse under the Plan. B. D. Allowed annuities to be purchased for individual retirement accounts. [Content_Types].xml ( Y0}GM Of course, it would be a tragedy were something to happen to your spouse. E. Your premium will be higher than a whole life policy premium. An individual can take out a loan on his or her term policy. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. $86,000 C. $98,000 D. $172,000 E. $217,000. Estimate how much life insurance Tim and Allison should carry. This website helped me pass! D. A fixed annuity is one where the investments made into the annuity are variable. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Claim Settlement Ratio What kind of policy is he planning to purchase? Which of the following is NOT a type of permanent insurance? It will take your youngest child 15 more years to reach 18. The insurer may tell you, or it may ask you to submit a form reporting the death. What is a Rider on a Life Insurance Policy? D. Household with children. B. Let's review. This communication strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. C. It is more expensive than term insurance. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. If you have a renewable term policy, 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. You have a gross annual income of $62,000. Please check your entries and try again. Pay off a mortgage. B. 5. 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. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Which of the following is NOT temporary insurance? Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? The investment risk in investment portfolio is borne by the policyholder. \end{array} Your premium will not increase when you renew it. A. False. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ This method is called the non-working spouse method. nonworking spouse whose youngest child is 5 years old? is your life insurance need based on the easy method? A person who is named to receive the benefits from an insurance policy is a(n) A. 46. B. Dun & Bradstreet. E. Child. Wendy has had a life insurance policy for five years. Allowed whole life insurance policies to be sold. It will have a lower coverage amount and a waiting period (usually 2 year). Most people buy life insurance to A. I feel like its a lifeline. Which of the following is NOT a type of permanent life insurance? Whole life B. Quickly and professionally. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. Georgia was supposed to pay her premium by the 15th of the month. The recommendation is to have seven to ten years of life insurance. A. Its like a teacher waved a magic wand and did the work for me. 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. Your annual income is $100,000. Collections on Tuition and Fees Receivable totaled$222,600. A. Features of Life Insurance Jumping the Wealth Curve with Edward E. Bao Jr. D. Fund expense. old? E. None of these is correct. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. They have determined that their annual income is $70,000 and their net worth is now $150,000. But life insurance rates can vary dramatically among applicants, insurers and policy types. 60. Further, making sure that your non-working or part-time working spouse has the maximum amount of coverage based upon your coverage is a fundamental of good planning. The DINK method has you adding half of all your debts to your funeral expenses. 97. Group life C. Limited life D. Universal life E. Variable life, 49. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. What is the amount of life insurance they should carry using the easy method? 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. The insurance industry rule of thumb that a typical, family will need 70% of salary for seven years in order to, adjust for the financial consequences of a wage-earner's, death is known as which of the following estimation. False. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. to work after your death. Fixed Annuities are long-term insurance products. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. B. I would definitely recommend Study.com to my colleagues. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. What will be the surrender value of LIC policy after 5 years? D. Standard & Poors. As a member, you'll also get unlimited access to over 88,000 Use the multiple of income method to 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. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. Which of the following policies would meet her needs? How to estimate life insurance requirements for a non working spouse? 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Use D. Term. The Tax Reform Act of 1986 A. 99. Let us have a look at your work and suggest how to improve it! 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. Insurance needed. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = 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. Which of the following is a charge you will pay when you purchase a variable annuity? C. Your premium will not increase because your policy is renewable. Your spouse expects to continue to work after your death. Can I stay on my parents insurance if I file taxes independently? 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. This next method is for those with just one wage earner in the family. 2003-2023 Chegg Inc. All rights reserved. What is the most important part of an insurance agents job? You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. 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. Estimate how much life insurance Tim and Allison should carry. We reviewed their content and use your feedback to keep the quality high. Sell you the highest level of coverage available. The first is the easy method. Student services 37,700 The most common settlement option for a life insurance program is the lump-sum payment. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. 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. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. 67. For example, say. D. Decreasing term. IN THIS ARTICLE Disability income insurance, which complements health insurance, can replace lost income and help protect you and your family from an otherwise financially catastrophic illness or injury. When deciding the right amount of coverage required for your spouse, everyones need may be different. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. method, what should be your need for life insurance? A. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. E. None of these. D. Term life insurance plans. D. The policy features. C. Final life payment. Institutional support 28,500. Do both you and your spouse need life insurance? B. Mortality and expense risk charge. If you have a conversion term policy, A. Easy method C. DINK method D. Family need E. Soccer mom 95. A. Your premium may increase if you continue it for another term because you will be older. 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. A. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! This is also the most thorough method. Protect the people who depend on the insured from financial losses caused by his or her death. E. Convince you to buy the policy that will pay her the highest commission. 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. Can you buy life insurance for someone who is dying? Using the easy The maturity benefit is Rs. This method is used only to calculate child care needs, not the total financial needs of the family. Which of the following households most likely has the greatest need for life insurance? Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). Endowment Plans Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. What is Life Insurance? If you want to purchase term insurance, you will receive all of the following except A. Such advance premium, if any, paid by the Policyholder shall not carry any interest. C. Her contingent beneficiaries. Can someone be denied homeowners insurance? Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. Insurance Need: . Protection against loss of life for a specified term. The death benefit will be increased by the amount of an outstanding policy loan. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). You are a dual-income, no-kids family. The question is, how big are yours? This term life policy will guarantee that you will pay the same premium for the duration of your policy. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. What. C. Convertible term. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Group life B. B. D. You must pay interest on any outstanding policy loans. C. The policy will return all premiums if you survive to the end of the policy. 70. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). E. 60 days. A. C. Administrative fee. 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? Look through financial records. Benefits of Life Insurance Further, you estimate that your funeral will cost $6,000. 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. C. Final life payment. Each plans to continue to work after the other one dies. If you have a multiyear level term policy, A. 39. 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 If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. E. The policy requires that you pay a specified premium each year for the rest of your life. 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.

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