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

Course Hero is not sponsored or endorsed by any college or university. The first method is called the easy method. . Your needs will also change over time, so your life insurance needs may also change over time. Whole life B. When it comes to purchasing life insurance, you need to make sure you are purchasing enough coverage to cover all your financial needs upon your death. DINK stands for double income, no kids. This next method is for those with just one wage earner in the family. 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 Whether you're married, domestic partners or simply sharing a life with someone you love, taking out a pair of affordable term life insurance policies can provide both financial security and peace of mind. Also, if you try to make up some of that yourself, you lose income and income potential. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? She may need to change her coverage as her needs change. Which of the following riders should she consider? 101. In contrast to the biopsychosocial model, the biomedical model views health as ___________. Term insurance for non-working spouse in India will be of great help. f. include taxes, storage fees, and handling costs, Purchasing a life insurance policy is a basic and inexpensive task, Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death, The sooner a person is likely to die, the lower the premiums he or she will pay, Life expectancy for men is longer than that for women, Life insurance is a wise purchase of all individuals, The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets, The "Family Need" method of estimating life insurance includes factors such as social security and liquid assets, Decreasing term pays less to the beneficiary as time passes, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy, Competition among companies with comparable policies can affect the price a company charges for life insurance, An interest-adjusted index is a method evaluating the cost of life insurance by taking into accounting the time value of money, The lower the interest-adjusted index, the lower the cost for 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, The most common settlement option for a life insurance program is the lump-sum payment, If you switch life insurance policies, you will automatically still be insurable, Annuities are more attractive for people who expect to live only a short time, The earnings from an investments in an annuity is taxed the same as earnings from an investment in the certificate of deposit, An administrative fee of $150 per year may be deducted to cover record-keeping and other administrative expenses related to a variable annuity, When you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically, If you have misplaced a life insurance policy, your state's insurance commission may be able to help you locate it, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. insurance needs for a family whose youngest child is 5 years Jeff Willis has five kids and more debt than the, average family. 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. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. There are many situations to consider, and the methods you just heard about may or may not fit your needs. 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. Which of the following is a charge you will pay when you purchase a variable annuity? B. The settlement option that pays the life insurance proceeds in equal periodic payments for a specified number of years after your death is called A. Lump-sum payment. Further, you estimate that your funeral will cost $6,000. So your life insurance requirement is 15 $10,000 = $150,000. 26. Use the easy method to determine how much insurance she should carry. Another name for a straight term policy is A. Renewable term. E. None of these is correct. Each of you If we really see it through the lens, probably the Non-working Spouse, as the life insurance industry calls it, has more of the work to do without getting paid as much as its office-going counterpart. d. 28. One of our associate will call you back shortly. Jumping the Wealth Curve with Edward E. Bao Jr. Is equipment floater the same as inland marine? A. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. B. Dun & Bradstreet. ^Individual death claims settled and reported in public disclosures for FY 2021-22. True. The question is, how big are yours? E. Weiss Research. 1. A. Allison is a "nonworking" spouse who devotes all of her time to household activities. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Sum Assured fixed at Rs. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. The policy terminates only after the sum assured on death or diagnosis of Terminal Illness of the second life, or on maturity of the policy term, thereafter. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). Jeff and Erica have two children. B. C. A life insurance policy allows an individual to receive payments from an annuity at once. D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. This method is called the non-working spouse method. 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. $343,000 C. $490,000 D. $700,000 E. $750,000, 86. Straight life. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). There are many life circumstances you need to consider, but depending on your circumstances, there are different methods you can use to figure out your life insurance coverage requirement. 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. Term C. Credit life D. Endowment life E. Adjustable life, 53. Enrolling in a course lets you earn progress by passing quizzes and exams. The Tax Reform Act of 1986 A. The maturity benefit is Rs. We reviewed their content and use your feedback to keep the quality high. You may not purchase insurance once your term ends. The policy loan provision means that A. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ Todd plans to purchase a life insurance policy from a stock life insurance company. 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. Investors in the Scheme are not being offered any guaranteed / assured returns. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands)\begin{array}{c} 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. 96. C. 10 days. You have a gross annual income of $62,000. Life insurance is a wise purchase of all individuals. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? 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. Which statement is correct regarding mutual life. A. 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. B. C. Moodys. Whole life. C. Individual retirement accounts (IRAs). was specifically designed for someone in her situation? As a member, you'll also get unlimited access to over 88,000 Use \textbf{STEINER COLLEGE}\\ method, what should be your need for life insurance? Preserved the tax advantage of annuities but curtailed deductions for IRAs. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. 1. Tim and Allison are married and have two children, ages 4 and 7. Use Exhibit 1-B. $140,000 B. Estimate how much life insurance Tim and Allison should carry to cover Allison. Which of the following is NOT a type of permanent life insurance? 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. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. D. Her parents. Adult child living with parents. 46. money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. 24. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. Or, you can call us at (800) 797-1000. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. How to estimate life insurance requirements for a non working spouse? 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. D. The beneficiary can borrow any amount up to the total benefit. Limited installment payment. Life insurance companies issue a lot of paperwork. Sell you the highest level of coverage available. Futures Contract in Finance Purpose & Examples | What Are Futures? Protect the people who depend on the insured from financial losses caused by his or her death. method for him to use to calculate his insurance needs? Competition among companies with comparable policies can affect the price a company charges for life insurance. This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ $18,000 C. $50,000 D. $130,000 E. $180,000, 84. A. Ben. What is your life insurance need using the DINK method? 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. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. 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. Group life C. Limited life D. Universal life E. Variable life, 50. Anita is a "nonworking" spouse who devotes all of her time to household activities. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ All rights reserved. 36. C. Administrative fee. E. Whole life insurance plans. the easy method to determine how much life insurance you should carry. All guarantees are based on the continued claims paying ability of the issuing company. The timing for payments of a variable annuity are variable. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. Which of the following provisions will affect the amount of money his beneficiaries will receive? $140,000 B. A. It equals the cost of replacing the property. Donald and Charlene are married and do not have any children. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. 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. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. A process has specification limits of LSL 5 540 and USL 5 550. You have a spouse, two kids, a dog and a mortgage - a typical family. Using the DINK method, what should be your need for life insurance? Jeanne wants to purchase a life insurance policy with guaranteed premiums. Yes. C. Tell you why her product is better than the competitors. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. The companys cost of doing business. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. What method. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Something went wrong. 25,00,000 which will remain same throughout the Policy Term. \end{array} Yes! This is also the most thorough method. Your spouse expects to continue A. Adjustable life B. E. 60 days. Megan wants to purchase a life insurance policy that will allow her to invest in stock. A. B. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. $12,000 in 15 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. GST On Life Insurance You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a nonworking spouse whose youngest child is 5 years old? B. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. D. Your policy will have the same premium as other term policies. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Get unlimited access to over 88,000 lessons. They have determined that their annual income is $70,000 and their net worth is now $150,000. Using the nonworking spouse method, what should be the life insurance needs for a . Which of the following provisions should she take action on? 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Amy has worked with students at all levels from those with special needs to those that are gifted. \textbf{Liabilities and Net Assets}\\ Buying from professionally qualified representatives C. Ignoring the reputations of local agencies D. Working with a representative who will help you select the proper kind of protection within your financial boundaries E. Asking family or friends for recommendations to choose an insurance company. 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. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. For example, say you're the only one working in your family and your youngest child is three. A. The sooner a person is likely to die, the lower the premiums he or she will pay, Life expectancy for men is longer than that for women.