. 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. 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. A. The income replacement approach is a method of determining the amount of life insurance you should purchase. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ Fell free get in touch with us via phone or send us a message. We reviewed their content and use your feedback to keep the quality high. What kind of policy would you want to purchase? In other words, you will have to show why you want to insure the individual. C. Identified annuities to be the same as certificates of deposit. 65. Try refreshing the page, or contact customer support. Solved Using the "nonworking" spouse method, what should be - Chegg The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Term C. Credit life D. Endowment life E. Adjustable life, 53. B. Bens beneficiaries. If you have a multiyear level term policy, A. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? Life insurance companies issue a lot of paperwork. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. What kind of policy would she want to purchase? This is also the most thorough method. E. Convince you to buy the policy that will pay her the highest commission. Amy has a master's degree in secondary education and has been teaching math for over 9 years. Please consult your independent tax advisor for details. $4,000. E. Credit life. 58. 200 lessons. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? They have determined that their annual income is $70,000 and their net worth is now $150,000. Home Flashcards Chapter 10 Personal Finance. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. See Answer Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. 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. 700 cartons to be stored. Now, you take this number and subtract your available assets from this number. A. Adjustable life B. Protect the people who depend on the insured from financial losses caused by his or her death. Also, if you try to make up some of that yourself, you lose income and income potential. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. 12-3 the easy method to determine how much life insurance you should carry. Endowment Plans It accumulates cash value. 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. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. makes about $38,000 annually. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. She, wants to determine her insurance needs. E. Cash value life. Money Market | Graph, Demand Curve & Model, Rate of Return Formula & Examples| How to Calculate the Rate of Return, Bank Liabilities & Assets | Overview, Differences & Examples, How to Choose a Career: Guidance Counseling, Principles of Macroeconomics: Certificate Program, Principles of Microeconomics Syllabus Resource & Lesson Plans, AEPA Economics (AZ035): Practice & Study Guide, Holt McDougal Economics - Concepts and Choices: Online Textbook Help, DSST Personal Finance: Study Guide & Test Prep, Hawaii Real Estate Salesperson Exam: Study Guide & Practice, CPA Subtest III - Financial Accounting & Reporting (FAR): Study Guide & Practice, Glencoe Earth Science: Online Textbook Help, Holt McDougal Algebra 2: Online Textbook Help, McDougal Littell Algebra 2: Online Textbook Help, Create an account to start this course today. You want to purchase a life insurance policy that pays a dividend. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. 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. The premium paid in Unit linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. B. A. Surrender charge. E. Proceeds left with the company. Ask a Family Member's Financial Advisor. Its like a teacher waved a magic wand and did the work for me. E. None of these is correct. A. B. Dun & Bradstreet. D. Help you select the proper kind of protection within your financial boundaries. 37. Life Insurance for Spouse (Non-Working): All You Need To Know Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. 80. 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. You are a dual-income, no-kids family. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. C. The policy owner can borrow any amount up to the cash value of the policy. 25. What is the cost of living in California? Pay off a mortgage. Use the multiple of income method to is your life insurance need based on the easy method? Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. E. Proceeds left with the company. What is the amount of life insurance they should carry using the easy method? Certificates of deposit. Collections on Tuition and Fees Receivable totaled$222,600. C. A life insurance policy allows an individual to receive payments from an annuity at once. 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. Whole life. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. B. Mortality and expense risk charge. Using the easy D. Her parents. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. The most common settlement option for a life insurance program is the lump-sum payment. B. The return on its investments. Time Value of Money Formula & Examples | What is Time Value of Money? to work after your death. Insurance Contract Characteristics | Traits Specific to Insurance Contracts, Future Value Formula & Examples | How to Calculate Future Value. Features of Life Insurance Jeff and Erica have two children. Life expectancy for men is longer than that for women. Your premium will not increase when you renew it. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. Can you buy life insurance for someone who is dying? An immediate annuity allows an individual to receive payments from an annuity beginning at once. You have no other debt. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. Which of the following statements is correct? Fixed annuity B. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. You estimate that funeral expenses will be $5,000. Quickly and professionally. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. \quad\text{Deposits held in custody for others}&&\text{700}\\ Megan wants to purchase a life insurance policy that will allow her to invest in stock. Jumping the Wealth Curve with Edward E. Bao Jr. Student services 37,700 D. Life income option. 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. The sooner a person is likely to die, the lower the premiums he or she will pay. A. Collect premiums for the insurance contract. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. Annuities are often purchased for A. An error occurred trying to load this video. Insurance Premium \textbf{Statement of Financial Position}\\ 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. Call the State Commissioner's Office for your State. 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. Life Insurance Underwriting method, what should be your need for life insurance? E. Pay taxes. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. $30,000 B. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. Of course, it would be a tragedy were something to happen to your spouse. What is a Rider on a Life Insurance Policy? 25,00,000 which will remain same throughout the Policy Term. Another name for temporary life insurance is A. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. Look through financial records. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. Which method are they using to determine their life insurance needs?