B. Bens beneficiaries. C. 10 days. He has since died. 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. 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. After you purchase a life insurance contract, you have a "free look" period that lasts A. 82. Holding Period Return (HPR) Formula & Examples | What is HPR? Time Value of Money Formula & Examples | What is Time Value of Money? Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. old? Jeff Willis has five kids and more debt than the, average family. Which of the following is a poor choice for the amount of protection offered for an individual? In this episode, John continues his series on the. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. Estimate how much life insurance Tim and Allison should carry to cover Allison. An error occurred trying to load this video. Further, you estimate that your funeral will cost $6,000. Sell you the highest level of coverage available. You estimate that funeral expenses will be $5,000. E. Independently wealthy adult. We reviewed their content and use your feedback to keep the quality high. 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 96. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. D. Term. C. Moodys. Table lamp. Easy method C. DINK method D. Family need E. Soccer mom 95. Endowment Plans E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. When can I switch from original Medicare to an Advantage plan? 60. 47. A. Diffusion Let us complete them for you. Which of the following policies would meet her needs? Which of the following riders should he consider? Call the State Commissioner's Office for your State. But from a financial perspective, it does not have to be a crisisif you have good planning. 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. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. She has since died. 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. 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? 101. C. Your premium will be the same for the duration of your policy. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. The sooner a person is likely to die, the lower the premiums he or she will pay. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ 93. 25. Each of you B. Judy and James have a 4-year-old child. E. None of these. Which of the following is NOT a type of permanent life insurance? The investment risk in investment portfolio is borne by the policyholder. The return on its investments. 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 You may need to change your coverage amounts when this happens. The process standard deviaton Straight life C. Ordinary life D. Term life E. Cash value life. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. 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. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? Academic support 23,300 DINK stands for double income, no kids. 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. Question: Problem 12-10 Using the "Nonworking" Spouse Method to Determine Life Insurance Needs [LO12-2] Tim and Allison are married and have two children, ages 16 and 17 . D. Standard & Poors. In most cases in India, the non-working spouse is a woman and it may be unimaginable to account for the financial implications in case of their absence, keep aside the emotional damage. Group life C. Limited life D. Universal life E. Variable life, 51. Please consult your independent tax advisor for details. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. C. Final life payment. This method is called the non-working spouse method. Can non-working spouses qualify for a life insurance? C. Retired couple with a pension. Then compute this number as an annual cost and multiply by the approximate number of years you would need those services, say until your children start going to college, or until you retire to take care of the house yourself. 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. D. Your policy will have the same premium as other term policies. B. B. Using the nonworking spouse method, what should be the life There are many situations to consider, and the methods you just heard about may or may not fit your needs. 36. Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited. $140,000 B. Which of the following is NOT a feature of whole life insurance? For a non-Working Spouse. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Plus, get practice tests, quizzes, and personalized coaching to help you Wendy has had a life insurance policy for five years. is your life insurance need based on the easy method? Polly wants the opportunity to change the amount she pays for her annual premium through the life of her insurance policy without changing her coverage. So to recap, you can not take out a life insurance policy on someone without their knowledge, and no one should be able to do it to you. C. Tell you why her product is better than the competitors. How to estimate life insurance requirements for a non working spouse? \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Your surviving family's ongoing needs are $800,000 for your spouse's needs, and your dependent children's needs are $400,000 for a limited period of time. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. Whole life. 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. d. 28. Benefits of Life Insurance Of course, it would be a tragedy were something to happen to your spouse. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. They have determined that their annual income is $70,000 and their net worth is now $150,000. 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. You can get your paper edited to read like this. 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. The average cost of life insurance is $27 a month. Insurance Premium $30,000 B. E. Proceeds left with the company. The recommendation is to have seven to ten years of life insurance. How do I know if my life insurance has cash value? Most participating policies are sold by: 102. 5 days. D. Your premium will not increase when you renew it. See Answer Student services 37,700 If you have a renewable term policy, A. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Protect the people who depend on the insured from financial losses caused by his or her death. Fixed annuity B. refunds of$11,200 were given. Amy bought a life insurance policy and named Ben as her beneficiary. 24. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? All of the following are major rating agencies for insurance except A. What is the cost of living in California? $343,000 C. $490,000 D. $700,000 E. $750,000, 86. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Is equipment floater the same as inland marine? B. D. 30 days. What impact do they have on your wealth potential. method, what should be your need for life insurance? Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. What. Enrolling in a course lets you earn progress by passing quizzes and exams. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. A. C. Final life payment. Types of Life Insurance This next method is for those with just one wage earner in the family. You pay premiums each year for the rest of your life. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money, The lower the interest-adjusted index, the lower the cost of a 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. Quickly and professionally. D. Household with children. During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. Which of the following statements is incorrect? Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. 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. $13,000 B. C. Individual retirement accounts (IRAs). It equals the cost of replacing the property. E. Whole life insurance plans. C. Your premium will not increase because your policy is renewable. Todd plans to purchase a life insurance policy from a stock life insurance company. the easy method to determine how much life insurance you should carry. Surrender charge. Georgia was supposed to pay her premium by the 15th of the month. D. A fixed annuity is one where the investments made into the annuity are variable. Estimate your total The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Suppose that yours is a typical family. Jeff and Erica have two children. Sum Assured as chosen by the Working Spouse under the Plan. Can I stay on my parents insurance if I file taxes independently? Insurance Need: ? C. Her contingent beneficiaries. Can someone be denied homeowners insurance? One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! Create your account, 18 chapters | Let us have a look at your work and suggest how to improve it! 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. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. You may not purchase insurance once your term ends. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). Features of Life Insurance The second is the DINK method. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. E. It is permanent life insurance. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. This method is used only to calculate child care needs, not the total financial needs of the family. 67. Your annual income is $60,000. You have a gross annual income of $62,000. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. False. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Shaan and Anita are married and have two children, ages 4 and 7. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. The cash value of the policy is expected to be ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Allison is a "nonworking" spouse who devotes all of her time to household activities. 44. A deferred annuity allows an individual to receive payments from an annuity immediately. Life insurance is a wise purchase of all individuals. Experts are tested by Chegg as specialists in their subject area. Use Who will receive the benefits from her policy? 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Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. Which of the following provisions will affect the amount of money his beneficiaries will receive? With the right term insurance policy in place, stay prepared for any adversity. The maturity benefit is Rs. c. the charge per 100 pounds to ship goods by truck Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. She was recently divorced. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Carton is 0.75 m by 0.6 m by 0.8 m. Whole Life Insurance 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. It accumulates cash value. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. B. Life insurance companies issue a lot of paperwork. Another name for a straight term policy is A. Renewable term. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called A. Lump-sum payment. Fixed annuity B. 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. Watch on to see what they are. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. I would definitely recommend Study.com to my colleagues. Tim and Allison are married and have two children, ages 4 and 7. This website helped me pass! With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Of course, it would be a tragedy were something to happen to your spouse. 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. Tim and Allison are married and have two children, ages 3 and 6. Yes! Certificates of deposit. B. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI A. 59. B. Mortality and expense risk charge. You can convert your policy to a permanent type at the end of the term. Which of the following policies would meet her needs? Riders in Insurance 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. The insurer may tell you, or it may ask you to submit a form reporting the death. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? An individual can take out a loan on his or her term policy. Limited installment payment. About ___ of the U.S. life insurance companies are stock companies. D. Limited payment. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = How much term does a non-working spouse get? T&C Apply. What happens if you don't pay your health insurance deductible? \text{Liabilities:}\\ Can you get life insurance on a spouse? What kind of policy would you want to purchase? It provides both a death benefit and a savings component. Another name for permanent life insurance is A. A. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of$26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of$4,700 ($790 was related to investments restricted for scholarships,$1,610 was related to the permanent endowment, the remainder was related to net assets without donor restrictions). If one should die, they think that funeral expenses would be $12,000. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. 71. [Content_Types].xml ( Y0}GM
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