. Allison is a "nonworking" spouse who devotes all of her time to household activities. ECON 150 Chapter 12 Sample Questions-1.rtf, What is a government Can you think of a reason why we need a government We need, Adjusted Net IncomeLoss and Adjusted Diluted EPS from Continuing Operations The, Analytical approach with clearly and highly articulated recommendatio ns, Which of the following would be the most appropriate advice to give her A Take 2, 6 DML price variance 0 DML efficiency variance 18000U 7 DML flexible budget, Dim statements into comments by adding an apostrophe at the beginning of the, INT 220 Module Two Assignment Template (1).docx, A glucose B fructose C galactose D sucrose E lactose 81 The following are, Vancouver BC Canada Food 1 50K 70K San Andres DF Mexico Food 0 10K 30K Portland, youth_athlete_sports_performance_nutrition_questionnaire_v2.doc, for the compromise or arrangement According to this section 1 In the given case, Formative Assessments_ A Tool for Teacher and Student Development.pdf, B Topic Concept 181 Skill ApplicationAnalysis A geneticist introduces a. The premium so collected in advance shall only be adjusted on the due date of the premium. B. Mortality and expense risk charge. 2003-2023 Chegg Inc. All rights reserved. C. It is more expensive than term insurance. Create your account, 18 chapters | C. Individual retirement accounts (IRAs). For example, say you're the only one working in your family and your youngest child is three. The DINK method has you adding half of all your debts to your funeral expenses. 101. You have to drive them to and from school, oversee homework and music practice. This problem has been solved! Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method. B. Whole life B. What is the most important part of an insurance agents job? As a member, you'll also get unlimited access to over 88,000 The Policy will terminate after payment of this benefit. A. What method would probably be the best. C. The mortality rate it expects among its policy holders. C. Decreasing term. Plus, get practice tests, quizzes, and personalized coaching to help you Straight life C. Ordinary life D. Term life E. Cash value life. 5% B. Surrender charge. U ^s1xRpbD#rYNrJC.aeD=U]Sik@X6G[:b4(uH%-+0A?t>vT9. With an available asset of $500,000 in savings, your life insurance requirement is $1,355,000 - $500,000 = $855,000. Which of the following provisions will affect the amount of money his beneficiaries will receive? The sooner a person is likely to die, the lower the premiums he or she will pay. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. Which of the following statements is correct? C. You can convert your term policy to a permanent policy. 47. 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? See Answer Estimating Your Life Insurance Requirements(continued) The "Nonworking" Spouse Method. Academic support 23,300 Using time value of money and assuming you could invest your All rights reserved. Use D. You must pay interest on any outstanding policy loans. This is a method that has you adding half of all your debts plus funeral expenses. Endowment Plans D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. Which of the following riders provided an additional benefit for his heirs? \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ 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. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] C. Pay for a vacation. A. Ben. Fred bought life insurance five years ago. Now, if it's just you and your spouse, you can use the DINK method. Answer . Whole life. C. Identified annuities to be the same as certificates of deposit. D. Decreasing term. Insurance Premium A. Or, you can call us at (800) 797-1000. Which of the following is a poor choice for the amount of protection offered for an individual? 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. E. Single year term. Estimate how much life insurance Tim and Allison should carry to cover Allison. \quad\text{Deposits held in custody for others}&&\text{700}\\ Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. In this episode, John continues his series on the. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. $50,000 C. $80,000 D. $100,000 E. $180,000 B. 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. Institutional support 28,500. Which of the following is NOT a type of permanent life insurance? \text{Prepaid assets}&&\text{1,364}\\ Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. In other words, you will have to show why you want to insure the individual. Which method are they using to determine their life insurance needs? Fixed Insurance products and services offered through Ash Brokerage or Smallwood Associates, Ltd. B. 25,00,000 which will remain same throughout the Policy Term. Jeanne wants to purchase a life insurance policy with guaranteed premiums. B. Dun & Bradstreet. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card A. D. 30 days. insurance needs for a family whose youngest child is 5 years Term insurance for non-working spouse in India will be of great help. B. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ T&C Apply. D. Insurer. In contrast to the biopsychosocial model, the biomedical model views health as ___________. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. PK ! Allison is a "nonworking" spouse who devotes all of her time to household activities. 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. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. You pay premiums each year for the rest of your life. - Definition, History & Examples, Stealth Advertising: Definition & Examples, What is Crowdsourcing? The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. How do I know if my life insurance has cash value? What kind of policy would you want to purchase? The insurer may tell you, or it may ask you to submit a form reporting the death. The second is the DINK method. 25% C. 50% D. 75% E. 95%, 32. 82. For a non-Working Spouse. Experts are tested by Chegg as specialists in their subject area. This method is used only to calculate child care needs, not the total financial needs of the family. False. determine the minimum amount of life insurance you should carry. E. It is permanent 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. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. C. Ordinary 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. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. 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. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. 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. We want to help you with that. Shaan and Anita are married and have two children, ages 4 and 7. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. D. A fixed annuity is one where the investments made into the annuity are variable. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). A. $13,000 B. They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Using Exhibit 12-1, determine the average numbers of additional years males alive at When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? 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. 68. method, what should be your need for life insurance? 38. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. 25,00,000 which will remain same throughout the Policy Term. Limited installment payment. fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o But from a financial perspective, it does not have to be a crisisif you have good planning. C. Tell you why her product is better than the competitors. 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. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. How to estimate life insurance requirements for a non working spouse? Which of the following statements is correct? 39. The cholesterol level in children follows a normal distribution with a mean level of 175mg/dL175 \mathrm{mg} / \mathrm{dL}175mg/dL and a standard deviation of 35mg/dL35 \mathrm{mg} / \mathrm{dL}35mg/dL. IN THIS ARTICLE Disability income insurance, which complements health insurance, can replace lost income and help protect you and your family from an otherwise financially catastrophic illness or injury. The process standard deviaton Limited installment payment. 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. the near future. \quad\text{Bonds payable}&&\underline{\text{\hspace{10pt}99,000}}\\ A.M. Best. When can I switch from original Medicare to an Advantage plan? B. He has since died. E. Child. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 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. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. A. Adjustable life B. Suppose that yours is a typical family. Anita is a "nonworking" spouse who devotes all of her time to household activities. Purshe Kaplan Sterling Investments and Smallwood Wealth Investment Management, LLC are not affiliated companies. 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. Which of the following is NOT temporary insurance? 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. Yes. Features of Life Insurance Read this lesson to learn what methods you can use to calculate your requirements. What is a Rider on a Life Insurance Policy? 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. E. None of these. Molly is thinking about buying a life insurance policy, but she is not sure about how much she will need in the next few years. Which of the following policies would meet her needs? Tim and Allison are married and have two children, ages 4 and 7. $40,000 B. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. 75. Your spouse expects to continue to work after your death. E. The policy requires that you pay a specified premium each year for the rest of your life. Insurance needed. D. You can convert your policy to a permanent type at the end of the term. When deciding the right amount of coverage required for your spouse, everyones need may be different. Please check your entries and try again. Which of the following policies should she buy? An error occurred trying to load this video. Marianne and Roger are in good health and have reasonably secure careers. \textbf{Assets}\\ Who will receive the benefits from her policy? B. 93. Easy method C. DINK method D. Family need E. Soccer mom 95. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. \textbf{June 30, 2019}\\ A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. This is a very common type of policy taken by homeowners who want to support their children financially. A Limited Payment Policy is a while life policy that requires premiums to be paid for a certain period. Further, you estimate that your funeral will cost $6,000. B. B. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. 99. This next method is for those with just one wage earner in the family. I highly recommend you use this site! Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. D. Allowed annuities to be purchased for individual retirement accounts. C. The policy will return all premiums if you survive to the end of the policy. 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. So your life insurance requirement is 15 $10,000 = $150,000. You can convert your policy from permanent to term at any time. 42. Limited installment payment. Competition among companies with comparable policies can affect the price a company charges for life insurance. Estimate how much life insurance Shaan and Anita should carry. insurance needs for a family whose youngest child is 5 years Holding Period Return (HPR) Formula & Examples | What is HPR? 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. The total debts of you and your spouse include the following: mortgage, $200,000; auto loan, $16,000; credit card balance, $2,000; and personal debts of $4,000. Allison is a "nonworking" spouse who devotes all of her time to household activities. \textbf{(amounts in thousands)}\\ B. 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. D. Your policy will have the same premium as other term policies. This last method is called the family need method. And, lastly, the family need method is 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 from it. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. C. A life insurance policy allows an individual to receive payments from an annuity at once. B. Adult child living with parents. How much storage space is required? 700 cartons to be stored. 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. Another name for temporary life insurance is A. You may need to change your coverage amounts when this happens. E. Proceeds left with the company. Your premium will not increase when you renew it. 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. Life Insurance Underwriting In most cases, the life insurance offered to the stay-at-home spouse depends on the coverage and income of the earning counterpart. D. The beneficiary can borrow any amount up to the total benefit. D. Standard & Poors. E. A policy whose coverage stops after a period of time. But life insurance rates can vary dramatically among applicants, insurers and policy types. Its free, with no obligation. E. Credit life. And a term insurance cover for house makers, non-working spouses, or say a housewife, proves helpful exactly here, ensuring your family tides over the financial damages in case something unfortunate happens. C. Your premium will not increase because your policy is renewable. What is the amount of life insurance they should carry using the easy method? They have determined that their annual income is $70,000 and their net worth is now $150,000. The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Group life C. Limited life D. Universal life E. Variable life, 50. In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. The Tax Reform Act of 1986 A. Purchasing a life insurance policy is a basic and inexpensive task. E. All of these. c. the charge per 100 pounds to ship goods by truck Term C. Credit life D. Endowment life E. Adjustable life, 53. C. Temporary insurance. C. Final life payment. 26. nonworking spouse whose youngest child is 5 years old? B. C. Final life payment. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? Enrolling in a course lets you earn progress by passing quizzes and exams. 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. Your annual premium is $1,000. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ Life insurance companies issue a lot of paperwork. You own a home with a mortgage of $110,000, and For example, if your gross income is $65,000, then with the easy method, your life insurance requirement is ($65,000 * 0.7) * 7 = $318,500. This method is called the non-working spouse method. A. 81. D. Fund expense. Estimate your total A process has specification limits of LSL 5 540 and USL 5 550.

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