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Can I stay on my parents insurance if I file taxes independently? The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. to work after your death. B. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. D. Term. A deferred annuity allows an individual to receive payments from an annuity immediately. All of the following are major rating agencies for insurance except A. What method would probably be the best. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? A. B. Bens beneficiaries. Riders in Insurance $343,000 C. $490,000 D. $700,000 E. $750,000, 86. Cross), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Psychology (David G. Myers; C. Nathan DeWall), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Give Me Liberty! $196,000 C. $280,000 D. $400,000 E. $430,000, 83. [Content_Types].xml ( Y0}GM GST On Life Insurance 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? E. Convince you to buy the policy that will pay her the highest commission. Most people buy life insurance to A. A. Fixed annuity B. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. E. An insurance company will calculate the annual amounts to pay each person for an annuity. Benefits of Life Insurance Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = 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. Using the DINK method, what should be your need for life insurance? The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. You policy will continue for one year. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. I highly recommend you use this site! 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. Experts are tested by Chegg as specialists in their subject area. For a non-Working Spouse. Academic support 23,300 D. It builds cash value. E. No interest will accumulate for any loans related to life insurance. Who will receive the benefits from her 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. 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 deferred annuity allows an individual to receive payments from a life insurance policy immediately. E. Credit life. C. 10 days. D. Allowed annuities to be purchased for individual retirement accounts. Competition among companies with comparable policies can affect the price a company charges for life insurance. Which of the following products allows an individual to receive payments beginning now? The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. What is non working spouse method? - InsuredAndMore.com The premium so collected in advance shall only be adjusted on the due date of the premium. Insurance Need: ? He has since died. 36. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? E. Whole life insurance plans. participating policy (dividends will be used to build up the cash value of the policy). But from a financial perspective, it does not have to be a crisisif you have good planning. D. Standard & Poors. 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. 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 can convert your policy from permanent to term at any time. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. 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. Ask to set up a Wealth Curve conversation. I feel like its a lifeline. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ $86,000 C. $98,000 D. $172,000 E. $217,000. Purchasing a life insurance policy is a basic and inexpensive task. E. All of these. Which of the following is NOT temporary insurance? 58. Estimate how much life insurance Tim and Allison should carry to cover Allison. 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. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? Income replacement is one of the main reasons many people, especially those who have loved ones depending on them financially, have life insurance. She does not want to take a medical exam to get coverage because she has some underlying health conditions and is concerned that she might not qualify for a policy. \textbf{(amounts in thousands)}\\ Exam 3 Flashcards by Sam Cohen | Brainscape money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. \end{array} The recommendation is to have seven to ten years of life insurance. 1. E. Child. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. When you're ready to purchase life insurance, you'll need to decide what coverage amount you need so that all your financial obligations and needs are met upon your death. The policy loan provision means that A. 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. Amy has a master's degree in secondary education and has been teaching math for over 9 years. C. Individual retirement accounts (IRAs). C. Ordinary life. You have a gross annual income of $62,000. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. 74. 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. 44. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Estimate how much life insurance Shaan and Anita should carry. C. The policy will return all premiums if you survive to the end of the policy. 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. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. a. a way of calculating an inventory's value 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. 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. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). 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 . Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. The Tax Reform Act of 1986 A. Which of the following is a poor choice for the amount of protection offered for an individual? Use the multiple of income method to A. Which of the following riders should he consider? Use Exhibit 1-B. 401(k) plans. She has since died. What are the stages of the General Adaptation Syndrome (GAS)? A. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. Diffusion Let us complete them for you. What is the amount of life insurance they should carry using the easy method? 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. 45. B. E. It is permanent life insurance. A. Allowed whole life insurance policies to be sold. A. Each earns $45,000 annually. E. Independently wealthy adult. E. An immediate annuity allows an individual to receive payments from an annuity beginning at once. Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. 41. 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 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. What is their total insurance need using the DINK method? \textbf{June 30, 2019}\\ E. Cash value life. Sum Assured as chosen by the Working Spouse under the Plan. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. C. Policyholder. T&C Apply. You must pay interest on any loans. 65. 60. You can convert your policy to a permanent type at the end of the term. \quad\text{Deposits held in custody for others}&&\text{700}\\ Catherine Carey has made the choice to stay home and raise her three kids while her husband works. lessons in math, English, science, history, and more. D. Life income option. A person who is named to receive the benefits from an insurance policy is a(n) A. 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. Certificates of deposit. Todd plans to purchase a life insurance policy from a stock life insurance company. B. 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 Most participating policies are sold by: 102. B. Student services 37,700 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. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. 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. A. \text{Liabilities:}\\ Likewise, when using the rule of 72, the number 72 is used in the calculation. - Definition & Types, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Unique Selling Proposition (USP): Examples & Definition, What Is Product Placement? Your premium will not increase when you renew it.