E. None of these is correct. \textbf{Assets}\\ Use the multiple of income method to 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. Watch on to see what they are. D. Your policy will have the same premium as other term policies. A. You pay premiums each year for the rest of your life. If you are a family and either you or your spouse stays home with the children, it is most likely that only the working souse has life insurance coverage because thats the case with most families in our country. Surrender charge. Is equipment floater the same as inland marine? Home Flashcards Chapter 10 Personal Finance. How do I know if my life insurance has cash value? 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. Fred bought life insurance five years ago. Preserved the tax advantage of annuities but curtailed deductions for IRAs. If you have a multiyear level term policy, A. All guarantees are based on the continued claims paying ability of the issuing company. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. B. Multiyear level term. A. C: Consumer Agencies & Organizations, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, How to Choose a College: Guidance Counseling, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Certificate Program, Effective Communication in the Workplace: Help and Review, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Intro to Excel: Essential Training & Tutorials, Information Systems and Computer Applications: Certificate Program, GED Social Studies: Civics & Government, US History, Economics, Geography & World, What is Whole Life Insurance? E. Pay taxes. A. Adjustable life B. She, wants to determine her insurance needs. b. the number of each item you have in stock The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. 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. $140,000 B. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. See Answer 78. C. Individual retirement accounts (IRAs). Which of the following households most likely has the greatest need for life insurance? Protection against loss of life for a specified term. D. Life income option. Plus, get practice tests, quizzes, and personalized coaching to help you \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ Allison is a "nonworking" spouse who devotes all of her time to household activities. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. 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 Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. 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. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. Under this method, the original principal that you save will still remain at the end of the income period. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. 45. B. \textbf{June 30, 2019}\\ This is a very common type of policy taken by homeowners who want to support their children financially. the near future. Easy method C. DINK method D. Family need E. Soccer mom 95. What is the most important part of an insurance agents job? This method is called the non-working spouse method. What. D. The policy features. Using the DINK method, what should be your need for life insurance? \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] 74. The recommendation is to have seven to ten years of life insurance. Protect the people who depend on the insured from financial losses caused by his or her death. Of course, it would be a tragedy were something to happen to your spouse. D. Standard & Poors. Adult child living with parents. Likewise, when using the rule of 72, the number 72 is used in the calculation. A. B. 200 lessons. 42. The policy loan provision means that A. nonworking spouse whose youngest child is 6 years old? 38. Yes. nonworking spouse whose youngest child is 5 years old? Further, you estimate that your funeral will cost $6,000. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. E. Credit life. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? 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. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. 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 policies would meet her needs? Carton is 0.75 m by 0.6 m by 0.8 m. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] E. None of these. A deferred annuity allows an individual to receive payments from an annuity immediately. Look through financial records. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ 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. Life insurance companies do realize that taking care of the house is an equally important as earning an income for the household. to work after your death. Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000; and other debts = Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. What will be the surrender value of LIC policy after 5 years? Using the sample chart that follows, find the column showing the age of the nonworking spouse 2. d. 28. Which of the following is NOT a feature of whole life insurance? T&C apply. Each of you B. \quad\text{Unearned revenue}&&\text{900}\\ If you have a renewable term policy, A. The insurer may tell you, or it may ask you to submit a form reporting the death. A person who is named to receive the benefits from an insurance policy is a(n) A. B. A. Waiver of premium disability benefit B. We are living in times of uncertainty. B. Renewable term. A. Waiver of premium disability benefit B. 5. The process standard deviaton Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. D. Life income option. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. Contract. 101. Investors in the Scheme are not being offered any guaranteed / assured returns. C. The policy will return all premiums if you survive to the end of the policy. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2020. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? Ask a Family Member's Financial Advisor. A. 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. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. Use the easy method to determine how much insurance she should carry. copyright 2003-2023 Study.com. It also collected $820 of Pledges Receivable that were unrestricted. 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. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. 26. 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. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ \textbf{STEINER COLLEGE}\\ What percentage of your income should you spend on life insurance? The family needs approach requires you to purchase enough life insurance to allow your family to meet its various expenses in the event of your death. 81. Another name for temporary life insurance is A. The maturity benefit is Rs. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. C. 10 days. E. A policy whose coverage stops after a period of time. nonworking spouse whose youngest child is 5 years old? Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. A. Ben. 93. We want to help you with that. A. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. Straight life. D. Decreasing term. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. There are many situations to consider, and the methods you just heard about may or may not fit your needs. c. the charge per 100 pounds to ship goods by truck lessons in math, English, science, history, and more. Such advance premium, if any, paid by the Policyholder shall not carry any interest. The return on its investments. If you have a conversion term policy, A. 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. An individual can take out a loan on his or her term policy. 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. Which of the following policies should she buy? D. Allowed annuities to be purchased for individual retirement accounts. $13,000 B. Estimate how much life insurance Tim and Allison should carry to cover Allison. The human-life approach is a method of calculating how much life insurance is needed for a family that is based upon their financial loss when the insured person in the family passes away. Using the "nonworking" spouse method, what should, be the life insurance need for a family whose youngest, 95. Let us have a look at your work and suggest how to improve it! Who will receive the benefits from her policy? 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. This method is meant for those with typical families where both spouses work, are in good health, with average debt, and with no more than three kids. 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. The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return.