MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. 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. Life insurance is a wise purchase of all individuals. B. D. 30 days. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. Find the symmetric intervals around the mean of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL that respectively include the cholesterol levels of 68.3%,95.4%68.3 \%, 95.4 \%68.3%,95.4%, and 99.7%99.7 \%99.7% of all children. b. the number of each item you have in stock Of course, it would be a tragedy were something to happen to your spouse. This next method is for those with just one wage earner in the family. The Wealth Curve Talk with John L. Smallwood. E. Proceeds left with the company. Your spouse expects to continue C. You can convert your term policy to a permanent policy. Purchasing a life insurance policy is a basic and inexpensive task. Which of the following is NOT important when buying life insurance? 700 cartons to be stored. Create your account, 18 chapters | old? age 35 may expect to live. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. Which method are they using to determine their life insurance needs? Now, you take this number and subtract your available assets from this number. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. When using the rule of 70, the number 70 is used in the calculation. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs.10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. . \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Of course, it would be a tragedy were something to happen to your spouse. Jumping the Wealth Curve with Edward E. Bao Jr. Using time value of money and assuming you could invest your method, what should be your need for life insurance? Protection against loss of life for a specified term. D. Help you select the proper kind of protection within your financial boundaries. C. Policyholder. 66. A. E. All of these. E. None of these is correct. How much storage space is required? Which of the following allows an individual to receive an amount of income that will change based on the income received from stocks or other investments over a certain period of time, or over his or her life? Features of Life Insurance
$86,000 C. $98,000 D. $172,000 E. $217,000. E. Your premium will be higher than a whole life policy premium. In this case, 18 years. 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. Tax benefits/savings are subject to provisions under section 80 C, 80 CCC, 80 D, 10(10A), 10(10D) and other sections of the Income Tax Act, 1961. This last method is called the family need method. determine the minimum amount of life insurance you should carry. 5. C. Tell you why her product is better than the competitors. 25. There's no one-size-fits-all answer to this because every family is different, but a 15- to 20-year policy between $250,000400,000 is a general rule. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. 401(k) plans. A. 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. If the policy exists, you can ask if you're a beneficiary. Here's how to calculate the estimated life insurance need: 1. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. 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 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. You have to drive them to their after-school activities, preparing meals, keeping the household in order, etc. \quad\text{Unearned revenue}&&\text{900}\\ Estimate your total D. Insurer. A. Adjustable life B. They plan to purchase life insurance using this formula: Current income 7 70%. Another name for a straight term policy is A. Renewable term. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. Diffusion Let us complete them for you. 35. E. Pay taxes. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. E. None of these is correct. Course Hero is not sponsored or endorsed by any college or university. So with funeral expenses of $10,000, your life insurance requirement is: This next method is for those with just one wage earner in the family. This is also the most thorough method. Whole life B. A. Waiver of premium disability benefit B. Amy has a master's degree in secondary education and has been teaching math for over 9 years. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] This method is called the non-working spouse method. Can you buy life insurance for someone who is dying? The income replacement approach is a method of determining the amount of life insurance you should purchase. \text{Liabilities:}\\ 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. 72. Yes! Non-Working Spouse Method. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. Using the DINK method, what should be your need for life insurance? Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Single adult living alone. 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. This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Call the State Commissioner's Office for your State. D. A fixed annuity is one where the investments made into the annuity are variable. Sum Assured as chosen by the Working Spouse under the Plan. 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. ^Individual death claims settled and reported in public disclosures for FY 2021-22. Futures Contract in Finance Purpose & Examples | What Are Futures? Allison is a "nonworking" spouse who devotes all of her time to household activities. B. \quad\text{Accounts payable and accrued liabilities}&&\text{\$\hspace{5pt}21,130}\\ Limited installment payment. Estimate how much life insurance Tim and Allison should carry to cover Allison. The death benefit will be increased by the amount of an outstanding policy loan. Your annual income is $100,000. Which of the following provisions should she take action on? Yes. 81. to work after your death. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A. 79. insurance needs using the DINK method. Amy bought a life insurance policy and named Ben as her beneficiary. 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. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Contract. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. NOT INSURED BY ANY STATE OR FEDERAL AGENCY. I feel like its a lifeline. Benefits of Life Insurance
If you find the policy or discover paperwork that indicates a policy exists, contact the insurer. The non-working spouse method is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. \quad\text{Deposits held in custody for others}&&\text{700}\\ The last thing to realize is that calculating your life insurance needs can be tricky. A. What is the most important part of an insurance agents job? Likewise, when using the rule of 72, the number 72 is used in the calculation. Amy has worked with students at all levels from those with special needs to those that are gifted. 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. A. Estimate how much life insurance Shaan and Anita should carry. You policy will continue for one year. Limited installment payment. 26. A. Ben. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. 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. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. 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. 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. C. Retired couple with a pension. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. D. A benefit during the period it covers, such as 1, 5, 10, or 20 years. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects and returns. 200 lessons. The average cost of life insurance is $27 a month. 38. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. When it comes to purchasing life insurance, you need to make sure you are purchasing enough coverage to cover all your financial needs upon your death. e. a place in which to keep products until they are needed The premiums & funds are subject to certain charges related to the fund or to the premium paid. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. A deferred annuity allows an individual to receive payments from an annuity at some future date. It is better to fund a fixed annuity before fully funding your IRA, Keogh, or 401(k). 46. Endowment Plans
D. Term life insurance plans. 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. Group life C. Limited life D. Universal life E. Variable life, 50. 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. Ag;sE2/yNNF;eF]!hiV^r^l PK ! old? The Tax Reform Act of 1986 A. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI
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. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Bill is worried about being able to pay his premium if he is totally and permanently disabled before age 60. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. d. 28. Watch on to see what they are. You heard about several methods you can use to calculate your life insurance needs. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. $18,000 C. $50,000 D. $130,000 E. $180,000, 84. Table lamp. Group life C. Limited life D. Universal life E. Variable life, 51.
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