D. The beneficiary can borrow any amount up to the total benefit. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. 97. In contrast to the biopsychosocial model, the biomedical model views health as ___________. 59. C. Pay for a vacation. In many cases, the answer is yes. Best Investment Options in India Exam 3 Flashcards by Sam Cohen | Brainscape What is Life Insurance? Group life B. Certificates of deposit. 101. 45. nonworking spouse whose youngest child is 5 years old? A. Shaan and anita are married and have two children, ages 9 and - Brainly All rights reserved. One of our associate will call you back shortly. C. Her contingent beneficiaries. A. Contract. C. Final life payment. For example, say you have a remaining mortgage of $30,000, a credit card balance of $11,000, and a personal loan of $5,000. $4,000. Time Value of Money Formula & Examples | What is Time Value of Money? They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Create your account, 18 chapters | If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. This is also the most thorough method. B. DESIGNED BY: INTERSOFT ASSOCIATES. C. Final life payment. Your surviving family's ongoing needs are $800,000 for your spouse's needs, and your dependent children's needs are $400,000 for a limited period of time. 66. The second is the DINK method. Which of the following policies would meet her needs? Term C. Credit life D. Endowment life E. Adjustable life, 53. Explanation: Generally when there is only one working spouse in a household and you want to get insurance to cover child care needs, you can use the non-working spouse method which is very simple to calculate but will also carry a very low amount. Allison is a "nonworking" spouse who devotes all of her time to household activities. Using the easy D. It builds cash value. determine the minimum amount of life insurance you should carry. Fred bought life insurance when he was 47, although he told the insurance company that he was 42. 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. $30,000 B. The companys cost of doing business. B. 5EPhGD!A'b1^:x[)(2##19pH`G0v#/(5;dI(D To unlock this lesson you must be a Study.com Member. 69. In case of death of the Life Assured during the Policy Term, Sum Assured on Death basis the Coverage option opted, less cumulative monthly income(s) already paid shall be payable. Such advance premium, if any, paid by the Policyholder shall not carry any interest. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. \quad\text{Deposits held in custody for others}&&\text{700}\\ The average cost of life insurance is $27 a month. old? Amy has worked with students at all levels from those with special needs to those that are gifted. 700 cartons to be stored. Can you get life insurance on a spouse? \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. 24. 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. Quantitative Literacy Ch. 12 - Quantitative Literacy: CH- 12 Using Steiner Colleges statement of financial position for the year ended June 30, 2019, is presented here. This gives you seven years of wages at 70%. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000. Benefits of Life Insurance This is a method that has you adding half of all your debts plus funeral expenses. Life Insurance Underwriting Suppose that yours is a typical family. Your rates will vary based on your unique circumstances, just as they would if you were single. E. A policy whose coverage stops after a period of time. What kind of policy would she want to purchase? T&C apply. Preserved the tax advantage of annuities but curtailed deductions for IRAs. Term Insurance For Non-Working Spouse In India - Policybazaar The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. You have to drive them to and from school, oversee homework and music practice. Amy has a master's degree in secondary education and has been teaching math for over 9 years. Endowment Plans A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. Judy and James have a 4-year-old child. E. Pay taxes. Your premium will not increase when you renew it. This problem has been solved! She, wants to determine her insurance needs. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. Catherine Carey has made the choice to stay home and raise her three kids while her husband works. Also, if you try to make up some of that yourself, you lose income and income potential. A. The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. Another name for permanent life insurance is A. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). 93. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. \text{Net assets:}\\ Which of the following life insurance policies should she apply for? C. Administrative fee. 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. 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. D. Decreasing term. The "Family Need" Method. Unit linked Insurance products are different from the traditional insurance products and are subject to the risk factors. Variable life C. Universal life D. Adjustable life E. Decreasing term life. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 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. Home Flashcards Chapter 10 Personal Finance. 5% B. Can you buy life insurance for someone who is dying? 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. What is their total insurance need using the DINK method? Student services 37,700 A. Who will receive the benefits from her policy? Diffusion Let us complete them for you. The capital retention method is a method of determining the amount of life insurance needed by using an interest-only model to support your family. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. D. Term. Need for a Life Insurance for the Non-Working Spouse - Canara HSBC Life d. 28. For example, say you're the only one working in your family and your youngest child is three. C. A life insurance policy allows the beneficiary to receive proceeds at some future date. The process standard deviaton 46. 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. Jeff Willis has five kids and more debt than the, average family. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. Each plans to continue to work after the other one dies. the near future. An error occurred trying to load this video. 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. Whole life. Using the nonworking spouse method, what should be the life Which method are they using to determine their life insurance needs? The Tax Reform Act of 1986 A. You have no plans to increase the size of your family in B. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Using Exhibit 12-1, determine the average numbers of additional years males alive at E. Proceeds left with the company. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. Of the following, which one is the most positive feature of whole life insurance? NOT FDIC INSURED. Your spouse expects to continue to work after your death. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. 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. Call the State Commissioner's Office for your State. To Buy: 1800-258-5899 (9:30 AM to 6:30 PM), For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003, Managing Director & Chief Executive Officer. You must pay interest on any loans. Please consult your independent tax advisor for details. What is the cost of living in California? b. the number of each item you have in stock You pay premiums each year for the rest of your life. D. Spend money. In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. Do both you and your spouse need life insurance? Tim and Allison are married and have two children, ages 3 and 6. DINK stands for double income, no kids. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. You have a spouse, two kids, a dog and a mortgage - a typical family. They plan to purchase life insurance using this formula: Current income 7 70%. Deferred annuity C. Whole life insurance D. Immediate annuity E. Universal life insurance. 25% C. 50% D. 75% E. 95%, 32. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Holding Period Return (HPR) Formula & Examples | What is HPR? Estimate your total As a member, you'll also get unlimited access to over 88,000 Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. What. Chapter 10 True False Flashcards | Quizlet 36. C. 10 days. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ NOT BANK GUARANTEED. If one should die, they think that funeral expenses would be $12,000. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. Which method are they using to determine their life insurance needs? Your spouse expects to continue 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. C. Retired couple with a pension. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. You can convert your policy from permanent to term at any time. The premium shall be adjusted on the due date even if it has been received in advance. Yes. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? 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. A process has specification limits of LSL 5 540 and USL 5 550. You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a The timing for payments of a variable annuity are variable. Todd plans to purchase a life insurance policy from a stock life insurance company. The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. You may not purchase insurance once your term ends. A. E. Credit life. \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ They have determined that their annual income is $70,000 and their net worth is now $150,000. If you have a multiyear level term policy, A. 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. This next method is for those with just one wage earner in the family. D. Term life insurance plans. Use D. Life income option. 96. Now, you take this number and subtract your available assets from this number. A. B. 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. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. When calculating an amount, ask yourself what it will cost to hire someone to replace your spouse and perform all the tasks your non-working spouse does throughout the day. Which of the following statements is incorrect? 1. 72. Fell free get in touch with us via phone or send us a message. 37. 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. 68. Each of you Life insurance companies issue a lot of paperwork. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. This method is used only to calculate child care needs, not the total financial needs of the family. C. Your premium will not increase because your policy is renewable. T&C Apply. D. Life income option. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. A. A.M. Best. Carton is 0.75 m by 0.6 m by 0.8 m. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. D. A fixed annuity is one where the investments made into the annuity are variable. E. Independently wealthy adult. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. The simplest method for estimating your clients' life insurance needs is the multiple-of-income approach. D. Standard & Poors. to work after your death. Experts are tested by Chegg as specialists in their subject area. Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). You want to purchase a life insurance policy that pays a dividend. A. Adjustable life B. Read this lesson to learn what methods you can use to calculate your requirements. D. Insurer. \textbf{June 30, 2019}\\ $50,000 C. $80,000 D. $100,000 E. $180,000 B. Which of the following policies would meet her needs? Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. A. Not necessarily. d. a way of shipping goods to customers Whole life B. 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. Limited installment payment. Wendy has had a life insurance policy for five years. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. 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. A. Estimate how much life insurance Tim and Allison should carry. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called A. Lump-sum payment. In this case, 18 years. 47. An immediate annuity allows an individual to receive payments from an annuity beginning at once. Using time value of money and assuming you could invest your