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). B. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. $30,000 B. B. Look through financial records. 25% C. 50% D. 75% E. 95%, 32. A. Academic support 23,300 A. 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. C. Final life payment. Group life C. Limited life D. Universal life E. Variable life, 52. What. Competition among companies with comparable policies can affect the price a company charges for life insurance. 46. The return on its investments. The Wealth Curve Talk with John L. Smallwood. A. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. This is a method that has you adding half of all your debts plus funeral expenses. Allison is a "nonworking" spouse who devotes all of her time to household activities. 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. Exam 3 Flashcards by Sam Cohen | Brainscape Estimate your total Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? PK ! It is important to replace all of the income lost when an employed family member dies when using the human-life approach. 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. Estimate how much life insurance Tim and Allison should carry to cover Allison. Use the easy method to determine how much insurance she should carry. Buying from a financially strong company B. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Your premium may increase if you continue it for another term because you will be older. E. None of these is correct. E. Proceeds left with the company. In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. The second is the DINK method. B. Renewable term. Having life insurance for income replacement means if you pass away, your family could have the financial support they need to maintain the lifestyle they're used to. What kind of policy is he planning to purchase? - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. You have no other debt. Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using 39. Which of the following is a charge you will pay when you purchase a variable annuity? Adult child living with parents. 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 temporary insurance? The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. 78. Holding Period Return (HPR) Formula & Examples | What is HPR? What is Life Insurance? The premium paid in Unit linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Everyone is impacted by these 5 problems. If marriage has taken place after the policy commencement date, you can add the Spouse to your policy within one year from the date of the marriage. 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 Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. But life insurance rates can vary dramatically among applicants, insurers and policy types. The premiums & funds are subject to certain charges related to the fund or to the premium paid. B. 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. Judy and James have a 4-year-old child. Straight life C. Ordinary life D. Term life E. Cash value life. All other trademarks and copyrights are the property of their respective owners. Which method are they using to determine their life insurance needs? You can convert your policy to a permanent type at the end of the term. A. Ben. 25. Shaan and anita are married and have two children, ages 9 and - Brainly Welcome to the Wealth Curve Talk Podcast. Which of the following households most likely has the greatest need for life insurance? Under this approach, the insurance purchased is based on the value of the income the insured breadwinner can expect to earn during his or her lifetime. Which of the following is NOT important when buying life insurance? Preserved the tax advantage of annuities but curtailed deductions for IRAs. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. Question: Problem 12-10 Using the "Nonworking" Spouse Method to Determine Life Insurance Needs [LO12-2] Tim and Allison are married and have two children, ages 16 and 17 . You want to purchase a life insurance policy that pays a dividend. C. You can convert your term policy to a permanent policy. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. D. 30 days. Your rates will vary based on your unique circumstances, just as they would if you were single. Term insurance for non-working spouse in India will be of great help. Your spouse expects to continue For example, say. 401(k) plans. 75. D. Insurer. b. the number of each item you have in stock A. Waiver of premium disability benefit B. Use The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. A. Amy has a master's degree in secondary education and has been teaching math for over 9 years. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. How to estimate life insurance requirements for a non working spouse? old? 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. Non-Working Spouse Method. False. Features of Life Insurance Life expectancy for men is longer than that for women. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. 59. Whole life. 35. 24. Which of the following provisions should she take action on? C. A life insurance policy allows the beneficiary to receive proceeds at some future date. A. A. $196,000 C. $280,000 D. $400,000 E. $430,000, 83. The DINK method has you adding half of all your debts to your funeral expenses. B. Multiply the income . D. It builds cash value. 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. How much term does a non-working spouse get? age 35 may expect to live. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Suppose that yours is a typical family. 2. Which of the following riders provided an additional benefit for his heirs? Use the multiple of income method to She, wants to determine her insurance needs. The investment risk in investment portfolio is borne by the policyholder. Which of the following is NOT a type of permanent life insurance? 5. lessons in math, English, science, history, and more. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. The premium shall be adjusted on the due date even if it has been received in advance. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 C. Final life payment. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. D. Life income option. Best Investment Options in India This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. About ___ of the U.S. life insurance companies are stock companies. Which of the following statements is incorrect? Which method are they using to determine their life insurance needs? Which of the following riders would allow her to receive cash now? In contrast to the biopsychosocial model, the biomedical model views health as ___________. 2003-2023 Chegg Inc. All rights reserved. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Which of the following allows an individual to receive a fixed amount of income over a certain period of time, or over his or her life? 71. 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. B. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Pay off a mortgage. He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. Georgia was supposed to pay her premium by the 15th of the month. Can non-working spouses qualify for a life insurance? Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). Term insurance B. 96. Benefits of Life Insurance This method is called the non-working spouse method. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. Whole life B. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? \text{Liabilities:}\\ 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. Term C. Credit life D. Endowment life E. Adjustable life, 53. Fixed annuity B. Then compute this number as an annual cost and multiply by the approximate number of years you would need those services, say until your children start going to college, or until you retire to take care of the house yourself. Determine an estimated regression equation that can be used to predict the overall score given the score for Shore Excursions. method for him to use to calculate his insurance needs? Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. This method is called the non-working spouse method. Wendy has had a life insurance policy for five years. Easy method C. DINK method D. Family need E. Soccer mom 95. 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. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, determine the minimum amount of life insurance you should carry, the easy method to determine how much life insurance you should carry. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. Which of the following provisions will affect the amount of money his beneficiaries will receive? You own a home with a mortgage of $110,000, and T&C Apply. C. Identified annuities to be the same as certificates of deposit. If we really see it through the lens, probably the Non-working Spouse, as the life insurance industry calls it, has more of the work to do without getting paid as much as its office-going counterpart. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. \quad\qquad\text{Total liabilities and net assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\ This is a method that has you multiplying your annual gross income by 70% and then multiplying that by 7. Sell you the highest level of coverage available. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! C. Individual retirement accounts (IRAs). D. You must pay interest on any outstanding policy loans. 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. 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. 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. \text{Net assets:}\\ For a non-Working Spouse. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Solved Using the "nonworking" spouse method, what should be - Chegg 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. 2.Guaranteed Benefits - Provided all premiums have been paid as and when due and the policy is in-force. Carton is 0.75 m by 0.6 m by 0.8 m. Life insurance is a wise purchase of all individuals. Home Flashcards Chapter 10 Personal Finance. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card This method has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. 41. Here's how to calculate the estimated life insurance need: 1. Most people buy life insurance to A. An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money, The lower the interest-adjusted index, the lower the cost of a 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. Answer . This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. 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. I would definitely recommend Study.com to my colleagues. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. 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. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. While it is wise to buy a life insurance policy to protect the income of the earning spouse, covering the non-working spouse may not seem as important. E. Whole life insurance plans.
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