the nonworking spouse method of estimating life insurance the nonworking spouse method of estimating life insurance

$343,000 C. $490,000 D. $700,000 E. $750,000, 85. E. Pay taxes. DINK stands for double income, no kids. 200 lessons. Jeff and Erica have two children. 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. 68. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Past performance of the investment funds do not indicate the future performance of the same. Ask a Family Member's Financial Advisor. Which of the following products allows an individual to receive payments beginning now? After you purchase a life insurance contract, you have a "free look" period that lasts A. [Content_Types].xml ( Y0}GM A. If you have a conversion term policy, A. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. 60. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. B. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. determine the minimum amount of life insurance you should carry. Using the nonworking spouse method, what should be the life What kind of policy is he planning to purchase? A. Adjustable life B. Agency Problem in Finance Overview, Duties & Examples | What is the Agency Problem? 48. Everyone is impacted by these 5 problems. c. the charge per 100 pounds to ship goods by truck A. The premium shall be adjusted on the due date even if it has been received in advance. To unlock this lesson you must be a Study.com Member. Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. T&C apply. 1. C. It is more expensive than term insurance. 3 days. The most common settlement option for a life insurance program is the lump-sum payment. A. Create your account, 18 chapters | What kind of policy would she want to purchase? B. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. A. A. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). B. 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. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. Get unlimited access to over 88,000 lessons. Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. The capital retention method is a method of determining the amount of life insurance needed by using an interest-only model to support your family. Yes! Group life B. The premium so collected in advance shall only be adjusted on the due date of the premium. Purchasing a life insurance policy is a basic and inexpensive task. The insurer may tell you, or it may ask you to submit a form reporting the death. 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. B. Mortality and expense risk charge. Group life C. Limited life D. Universal life E. Variable life, 50. She, wants to determine her insurance needs. D. Life income option. Riders in Insurance The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. A. Adjustable life B. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. 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. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. E. Proceeds left with the company. D. Her parents. E. None of these. This is a very common type of policy taken by homeowners who want to support their children financially. Sell you the highest level of coverage available. Which of the following provisions will affect the amount of money his beneficiaries will receive? What are the stages of the General Adaptation Syndrome (GAS)? Marianne and Roger are in good health and have reasonably secure careers. D. Allowed annuities to be purchased for individual retirement accounts. The question is, how big are yours? Further, you estimate that your funeral will cost $6,000. 25,00,000 which will remain same throughout the Policy Term. D. You must pay interest on any outstanding policy loans. Instruction$86,100 insurance needs for a family whose youngest child is 5 years 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. 27. 4.Tax benefit of Rs. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. 81. E. All of these affect the price. The DINK method has you adding half of all your debts to your funeral expenses. A. Such advance premium, if any, paid by the Policyholder shall not carry any interest. Goods & Services Tax will be charged on the premium amount. What is the amount of life insurance they should carry using the easy method? Do both you and your spouse need life insurance? Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. This method is called the non-working spouse method. 43. In contrast to the biopsychosocial model, the biomedical model views health as ___________. You have no plans to increase the size of your family in A. This gives you seven years of wages at 70%. 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. D. Your policy will have the same premium as other term policies. Which of the following riders provided an additional benefit for his heirs? Whole life B. Amy has worked with students at all levels from those with special needs to those that are gifted. 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. \text{Liabilities:}\\ E. Weiss Research. A. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. Multiply the income . Tim and Allison are married and have two children, ages 4 and 7. What is the most important part of an insurance agents job? nonworking spouse whose youngest child is 5 years old? You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a Another name for a straight term policy is A. Renewable term. C. Your premium will not increase because your policy is renewable. Using the DINK method, what should be your need for life insurance? Likewise, when using the rule of 72, the number 72 is used in the calculation. D. It builds cash value. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. The premiums & funds are subject to certain charges related to the fund or to the premium paid. 700 cartons to be stored. The last thing to realize is that calculating your life insurance needs can be tricky. With the right term insurance policy in place, stay prepared for any adversity. Sum Assured as chosen by the Working Spouse under the Plan. D. Insurer. 76. Georgia was supposed to pay her premium by the 15th of the month. Estimate your total Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. 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. 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. You can convert your policy to a permanent type at the end of the term. Which of the following riders should she consider? You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. A. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. Sum Assured fixed at Rs. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. 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. 80. C. Moodys. C. Identified annuities to be the same as certificates of deposit. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). What is Life Insurance? \text{Short-term investments}&&\text{7,666}\\ 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. \end{array} 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. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. You are a dual-income, no-kids family. Allison is a "nonworking" spouse who devotes all of her time to household activities. This problem has been solved! Limited installment payment. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. Experts are tested by Chegg as specialists in their subject area. The second is the DINK method. A. Waiver of premium disability benefit B. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? You and your spouse are in good health and have reasonably secure jobs. You own a home with a mortgage of $110,000, and 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. C. Retired couple with a pension. $12,000 in 15 years. The cash value of the policy is expected to be Using the nonworking spouse method, what should be the life insurance needs for a 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. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 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. What is your life insurance need using the DINK method? - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? C. 10 days. PK ! you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Is equipment floater the same as inland marine? was specifically designed for someone in her situation? Try refreshing the page, or contact customer support. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? d. 28. Under this approach, the insurance purchased is based on the value of the income the insured breadwinner can expect to earn during his or her lifetime. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. E. Cash value life. A deferred annuity allows an individual to receive payments from an annuity immediately. Explanation: Generally when there is only one working spouse in a household and you want to get insurance to cover child care needs, you can use the non-working spouse method which is very simple to calculate but will also carry a very low amount. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. 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. A. Life insurance is a wise purchase of all individuals. Life Insurance Underwriting Your spouse expects to continue You may need to change your coverage amounts when this happens. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Shaan and Anita are married and have two children, ages 4 and 7. This is a very common type of policy taken by homeowners who want to support their children financially. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Before you purchase, be sure to talk to your financial professional about the annuitys features, benefits, and fees and whether the annuity is appropriate for you, based on your financial situation and objectives. This term life policy will guarantee that you will pay the same premium for the duration of your policy. C. Final life payment. E. A policy whose coverage stops after a period of time. 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? Work with our consultant to learn what to alter. Now, if it's just you and your spouse, you can use the DINK method. An error occurred trying to load this video. A. A. Waiver of premium disability benefit B. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} They plan to purchase life insurance using this formula: Current income 7 70%. Which of the following is NOT temporary insurance? Of course, it would be a tragedy were something to happen to your spouse. True The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets False Mutual life insurance companies specialize in the sale of nonparticipating policies False The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 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. How much storage space is required? Contract. Whole life. B. 36. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Group life C. Limited life D. Universal life E. Variable life, 51. If you have a renewable term policy, A. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. Insurance Need: . E. An insurance company will calculate the annual amounts to pay each person for an annuity. The first method is called the easy method. See Answer Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. . 47. All rights reserved. Let's review. A. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. $12,000 B. T&C Apply. If you want to purchase term insurance, you will receive all of the following except A. 75. Institutional support 28,500. d. a way of shipping goods to customers The college received cash contributions without donor restrictions of$2,080, pledges to be collected in 2021 of $550, and cash contributions to the endowments of$335. E. None of these is correct. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. E. No interest will accumulate for any loans related to life insurance. 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. Tax benefits/savings are subject to provisions under section 80 C, 80 CCC, 80 D, 10(10A), 10(10D) and other sections of the Income Tax Act, 1961. Megan wants to purchase a life insurance policy that will allow her to invest in stock. The Tax Reform Act of 1986 A. Insurance Need: ? Which of the following statements is incorrect? $40,000 B. 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. B. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ 79. Quickly and professionally. Term insurance for non-working spouse in India will be of great help. Types of Life Insurance \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ E. 60 days. B. The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets, Mutual life insurance companies specialize in the sale of nonparticipating policies, Another name for straight term is renewable return-of-premium term, Decreasing term pays less to the beneficiary as time passes, Return-of-Premium term pays out all premiums plus interest to a beneficiary. Which of the following provisions should she take action on? Estimate how much life insurance Tim and Allison should carry to cover Allison. Sum Assured fixed at Rs. You pay premiums each year for the rest of your life. 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. D. Household with children. insurance needs for a family whose youngest child is 5 years 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. 35. The death benefit will be increased by the amount of an outstanding policy loan. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. Something went wrong. 82. This last method is called the family need method. One of our associate will call you back shortly. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? \quad\text{Deposits held in custody for others}&&\text{700}\\ 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. Were your family to lose that, you lose all of that labor. A.M. Best. old? 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. 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. For example, say you're the only one working in your family and your youngest child is three. Which method are they using to determine their life insurance needs? A deferred annuity allows an individual to receive payments from a life insurance policy immediately. Call the State Commissioner's Office for your State. 42. A. Which of the following households most likely has the greatest need for life insurance?