The premium so collected in advance shall only be adjusted on the due date of the premium. Your premium may increase if you continue it for another term because you will be older. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. Further, you estimate that your funeral will cost $6,000. Preserved the tax advantage of annuities but curtailed deductions for IRAs. 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. 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 The DINK method has you adding half of all your debts to your funeral expenses. 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. 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A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. This website helped me pass! Fell free get in touch with us via phone or send us a message. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. . ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Jeff and Erica have two children. Which of the following is the process of getting oxygen from the environment to the tissues of the body? A. 67. E. None of these is correct. Get unlimited access to over 88,000 lessons. A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. One of our associate will call you back shortly. It will take your youngest child 15 more years to reach 18. A. So your life insurance requirement is 15 $10,000 = $150,000. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. 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. Collect premiums for the insurance contract. Megan wants to purchase a life insurance policy that will allow her to invest in stock. 74. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Sum Assured as chosen by the Working Spouse under the Plan. In other words, you will have to show why you want to insure the individual. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. 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. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. We want to help you with that. 2. E. Independently wealthy adult. Using time value of money and assuming you could invest your the easy method to determine how much life insurance you should carry. They have determined that their annual income is $70,000 and their net worth is now $150,000. D. Life income option. What are the stages of the General Adaptation Syndrome (GAS)? The income replacement approach is a method of determining the amount of life insurance you should purchase. Each of you Now, you take this number and subtract your available assets from this number. 43. Can someone be denied homeowners insurance? Adult child living with parents. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. But from a financial perspective, it does not have to be a crisisif you have good planning. d. a way of shipping goods to customers C. Temporary insurance. At minimal, you want a policy to provide at least 5 years worth of income replacement, until you can balance out things. Which of the following riders should he consider? 42. $12,000 B. An immediate annuity allows an individual to receive payments from an annuity beginning at once. Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. Group life C. Limited life D. Universal life E. Variable life, 50. Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited. Jeanne wants to purchase a life insurance policy with guaranteed premiums. was specifically designed for someone in her situation? Whole life. Your spouse expects to continue you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card Which of the following provisions should she take action on? \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ Tim and Allison are married and have two children, ages 4 and 7. C. Identified annuities to be the same as certificates of deposit. $30,000 B. Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. You may not purchase insurance once your term ends. Group life C. Limited life D. Universal life E. Variable life, 49. 65. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. insurance needs using the DINK method. Donald and Charlene are married and do not have any children. 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. Which of the following is NOT a type of permanent life insurance? The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. What will be the surrender value of LIC policy after 5 years? All guarantees are based on the continued claims paying ability of the issuing company. 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. A. Or, you can call us at (800) 797-1000. Using the easy A. Factors That Affect Life Insurance Premiums She has since died. Can you get life insurance on a spouse? What is the cost of living in California? succeed. 1. 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. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. C. The mortality rate it expects among its policy holders. You have no plans to increase the size of your family in What method would probably be the best. Goods & Services Tax will be charged on the premium amount. Which of the following riders should he consider? Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 $12,000 in 15 years. Do both you and your spouse need life insurance? Allison is a "nonworking" spouse who devotes all of her time to household activities. Which method are they using to determine their life insurance needs? In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. 60. \text{Net assets:}\\ B. Types of Life Insurance Not necessarily. B. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. A deferred annuity allows an individual to receive payments from an annuity at some future date. 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. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Fixed Annuities are long-term insurance products. In contrast to the biopsychosocial model, the biomedical model views health as ___________. 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. Whole life B. 99. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ C. The policy owner can borrow any amount up to the cash value of the policy. A. Which of the following life insurance policies should she apply for? [Content_Types].xml ( Y0}GM Time Value of Money Formula & Examples | What is Time Value of Money? 44. To unlock this lesson you must be a Study.com Member. Can I stay on my parents insurance if I file taxes independently? Beneficiary. B. Multiyear level term. The maturity benefit is Rs. A. Waiver of premium disability benefit B. Course Hero is not sponsored or endorsed by any college or university. Your rates will vary based on your unique circumstances, just as they would if you were single. 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. Benefits of Life Insurance 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. Amy bought a life insurance policy and named Ben as her beneficiary. Each plans to continue to work after the other one dies. Such advance premium, if any, paid by the Policyholder shall not carry any interest. Your spouse expects to continue to work after your death. 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. C. It is more expensive than term insurance. 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. method, what should be your need for life insurance? Which of the following policies would meet her needs? The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid 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. A. 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. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated.