Which of the following provisions will affect the amount of money his beneficiaries will receive? The first method is called the easy method. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. method, what should be your need for life insurance? 35. What is the amount of life insurance they should carry using the easy method? $12,000 B. B. 58. Which of the following riders should he consider? E. None of these. E. Proceeds left with the company. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Which of the following riders should she consider? A. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Futures Contract in Finance Purpose & Examples | What Are Futures? 'QP2?^03dw 6x ;!;RTkz}Sc;)iI Non-Working Spouse Method. Use the multiple of income method to $18,000 C. $50,000 D. $130,000 E. $180,000, 84. Using the DINK method, what should be your need for life insurance? is =1.25\sigma = 1.25=1.25. The second is the DINK method. d. 28. They have determined that their annual income is $70,000 and their net worth is now $150,000. Life insurance companies understand that taking care of the home is invaluable and is equally important as earning an income for the household. A. 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. \text{Short-term investments}&&\text{7,666}\\ is your life insurance need based on the easy method? One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! A. Waiver of premium disability benefit B. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Megan wants to purchase a life insurance policy that will allow her to invest in stock. What is their total insurance need using the DINK method? Table lamp. $4,000. Ag;sE2/yNNF;eF]!hiV^r^l PK ! Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. In contrast to the biopsychosocial model, the biomedical model views health as ___________. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. Fixed annuity B. C. Final life payment. 26. $50,000 C. $80,000 D. $100,000 E. $180,000 B. 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 "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Multiply the number of years until the youngest child reaches 18 by $10,000. Sum Assured fixed at Rs. loans. 37. C. Tell you why her product is better than the competitors. 71. Your rates will vary based on your unique circumstances, just as they would if you were single. You have to drive them to and from school, oversee homework and music practice. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. B. Mortality and expense risk charge. You may need to change your coverage amounts when this happens. D. Standard & Poors. What impact do they have on your wealth potential. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Types of Life Insurance Watch on to see what they are. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. 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. Which of the following products allows an individual to receive payments beginning now? When using the rule of 70, the number 70 is used in the calculation. You policy will continue for one year. [Content_Types].xml ( Y0}GM B. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card 1. A. 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. Which of the following is a charge you will pay when you purchase a variable annuity? The Policy will terminate after payment of this benefit. 3 days. B. Dun & Bradstreet. 75. The average cost of life insurance is $27 a month. \textbf{Statement of Financial Position}\\ 44. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. A. Tim and Allison are married and have two children, ages 3 and 6. Protection against loss of life for a specified term. Whole life. Using time value of money and assuming you could invest your The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ 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. Sum Assured as chosen by the Working Spouse under the Plan. B. You can convert your policy from permanent to term at any time. About ___ of the U.S. life insurance companies are stock companies. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. \end{array} Call the State Commissioner's Office for your State. Not necessarily. It provides both a death benefit and a savings component. The "Family Need" method of estimating life insurance includes factors such as Social Security and liquid assets, Mutual life insurance companies specialize in the sale of nonparticipating policies, Another name for straight term is renewable return-of-premium term, Decreasing term pays less to the beneficiary as time passes, Return-of-Premium term pays out all premiums plus interest to a beneficiary. On occurrence of first death or diagnosis of terminal illness, to either of you, the sum assured on death corresponding to the affected life is paid and the policy continues with life cover for the other life with reduced premium. A. C. Ordinary life. A.M. Best. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. This is a method that has you adding half of all your debts plus funeral expenses. Each of you If you have a multiyear level term policy, A. E. Proceeds left with the company. 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. Of course, it would be a tragedy were something to happen to your spouse. Try refreshing the page, or contact customer support. False. to work after your death. It's 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. Fell free get in touch with us via phone or send us a message. Endowment Plans Amy has a master's degree in secondary education and has been teaching math for over 9 years. The insurance industry rule of thumb that a typical, family will need 70% of salary for seven years in order to, adjust for the financial consequences of a wage-earner's, death is known as which of the following estimation. 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. Estimate how much life insurance Tim and Allison should carry to cover Allison. C. Identified annuities to be the same as certificates of deposit. 46. Its like a teacher waved a magic wand and did the work for me. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. C. Your premium will not increase because your policy is renewable. 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. Contract. 96. E. All of these. Which of the following statements is correct? C. Decreasing term. One of our associate will call you back shortly. Estimate how much life insurance Tim and Allison should carry. lessons in math, English, science, history, and more. E. Whole life insurance plans. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Which of the following households most likely has the greatest need for life insurance? True. A. Waiver of premium disability benefit B. The sooner a person is likely to die, the lower the premiums he or she will pay. 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. A. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. A. Another name for temporary life insurance is A. What. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. Another name for permanent life insurance is A. Insurance Need: ? It equals the cost of replacing the property. This method is called the non-working spouse method. 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. Which of the following riders provided an additional benefit for his heirs? A deferred annuity allows an individual to receive payments from an annuity immediately. Your annual income is $100,000. Group life C. Limited life D. Universal life E. Variable life, 51. 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.