True. Using the easy 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. 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. Estimate how much life insurance Shaan and Anita should carry. GST On Life Insurance Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 63. $50,000 C. $80,000 D. $100,000 E. $180,000 B. How do I know if my life insurance has cash value? All rights reserved. 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. A. 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. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. D. 30 days. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. Using time value of money and assuming you could invest your Using the DINK method, what should be your need for life insurance? \quad\text{Deposits held in custody for others}&&\text{700}\\ Which of the following policies would meet her needs? 39. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. This is a very common type of policy taken by homeowners who want to support their children financially. Annuity Formula, Calculation & Examples | What is an Annuity? Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. D. Term life insurance plans. Allowed whole life insurance policies to be sold. Also, if you try to make up some of that yourself, you lose income and income potential. This gives you seven years of wages at 70%. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Further, you estimate that your funeral will cost $6,000. The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. Can I stay on my parents insurance if I file taxes independently? B. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. 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. Life expectancy for men is longer than that for women. C. Decreasing term. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. 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 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. D. Term. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. was specifically designed for someone in her situation? 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. Sum Assured as chosen by the Working Spouse under the Plan. 41. 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. 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 Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). D. Life income option. age 35 may expect to live. Chapter 10 Personal Finance - Subjecto.com 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. Megan wants to purchase a life insurance policy that will allow her to invest in stock. Which of the following statements is incorrect? 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. Your rates will vary based on your unique circumstances, just as they would if you were single. The companys cost of doing business. With the right term insurance policy in place, stay prepared for any adversity. nonworking spouse whose youngest child is 5 years old? Further, you estimate that your funeral will cost $6,000. When can I switch from original Medicare to an Advantage plan? You estimate that funeral expenses will be $5,000. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. In many cases, the answer is yes. D. Fund expense. Insurance needed. 96. Which of the following is a charge you will pay when you purchase a variable annuity? $4,000. E. All of these affect the price. So your life insurance requirement is 15 $10,000 = $150,000. 58. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. Protect the people who depend on the insured from financial losses caused by his or her death. Sell you the highest level of coverage available. 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$162,000), Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. 401(k) plans. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. Amy has worked with students at all levels from those with special needs to those that are gifted. B. She has since died. But from a financial perspective, it does not have to be a crisisif you have good planning. What is the most important part of an insurance agents job? Best Investment Options in India For example, your life insurance coverage amount will need to pay for funeral expenses, any outstanding debts, any remaining mortgage, and maybe even future financial support for a spouse or children. a. a way of calculating an inventory's value After payment was received, tuition The settlement option that pays the life insurance proceeds in equal periodic payments for a specified number of years after your death is called A. Lump-sum payment. Is equipment floater the same as inland marine? Whole life B. '`Wb L@b[[s8M,I=s:sr<3Y=w0&)_f& (_X>pO&|`r;ZXeEP4DDi_/%"M{s1&E^}W>f,Kc,$vt ls-`p]s+>hBQ/nmBNO`majcNz@vr2LvDZ \NTef9F+ B. A. A. $343,000 C. $490,000 D. $700,000 E. $750,000, 86. Each plans to continue to work after the other one dies. See Answer 79. D. Allowed annuities to be purchased for individual retirement accounts. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. 43. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ B. A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. Sum Assured fixed at Rs. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. D. Insurer. Premium payments are fixed with a Variable Life Policy, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy. Each of you ^Individual death claims settled and reported in public disclosures for FY 2021-22. Whole life. . 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. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. Beneficiary. C. Final life payment. E. It is permanent life insurance. 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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. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. I feel like its a lifeline. participating policy (dividends will be used to build up the cash value of the policy). C. The policy will return all premiums if you survive to the end of the policy. Pay off a mortgage. $140,000 B. Easy method C. DINK method D. Family need E. Soccer mom 95. You own a home with a mortgage of $110,000, and B. A. Life Insurance Underwriting Please consult your independent tax advisor for details. 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. What. They have determined that their annual income is $70,000 and their net worth is now $150,000. You can get your paper edited to read like this. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D 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). The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. D. Household with children. $12,000 B. For example, say. You may not purchase insurance once your term ends. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). C. Policyholder. E. None of these. Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. C. Tell you why her product is better than the competitors. Claim Settlement Ratio Group life C. Limited life D. Universal life E. Variable life, 50. C. Pay for a vacation. 80. 4.Tax benefit of Rs. It equals the cost of replacing the property. 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. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. Shaan and Anita are married and have two children, ages 4 and 7. 78. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. C. You can convert your term policy to a permanent policy. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. 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. This is a method that has you adding half of all your debts plus funeral expenses. Use Exhibit 1-B. E. Your premium will be higher than a whole life policy premium. 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. What is a Rider on a Life Insurance Policy? NOT INSURED BY ANY STATE OR FEDERAL AGENCY. What are the stages of the General Adaptation Syndrome (GAS)? You are the wage earner in a typical family, with $55,000 gross annual income. E. An insurance company will calculate the annual amounts to pay each person for an annuity. Amy bought a life insurance policy and named Ben as her beneficiary. Use the easy method to determine how much insurance she should carry. One of our associate will call you back shortly. He has since died. If their youngest child is 5 years old, how much do they need? For a non-Working Spouse. D. Limited payment. A. insurance needs using the DINK method. 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. 74. Plus, get practice tests, quizzes, and personalized coaching to help you d. a way of shipping goods to customers During the year, charges for tuition and fees were $244,500; scholarships were$16,300; and tuition waivers for scholastic achievement were $5,100. E. None of these is correct. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. 65. This gives you 7 years of wages at 70%. 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. Variety of Fund Options and Portfolio Management Strategies, Loyalty Additions + Wealth Boosters + Return of Mortality Charges, Optional In-built covers to enhance coverage, Policy Term of 1 year or less than 1 year. 71. $86,000 C. $98,000 D. $172,000 E. $217,000. Non-Working Spouse Method. A. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. Yes! The investment risk in investment portfolio is borne by the policyholder. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. If you have a renewable term policy, A. If one should die, they think that funeral expenses would be $12,000. b. the number of each item you have in stock \textbf{Statement of Financial Position}\\ How to estimate life insurance requirements for a non working spouse? $18,000 C. $50,000 D. $130,000 E. $180,000, 84. You want to purchase a life insurance policy that pays a dividend. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. 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