Using the DINK method, what should be your need for life insurance? Using Exhibit 12-1, determine the average numbers of additional years males alive at Holding Period Return (HPR) Formula & Examples | What is HPR? age 35 may expect to live. The policy terminates only after the sum assured on death or diagnosis of Terminal Illness of the second life, or on maturity of the policy term, thereafter. Get unlimited access to over 88,000 lessons. A. Waiver of premium disability benefit B. B. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. What method would probably be the best. $12,000 in 15 years. What is the amount of life insurance they should carry using the easy method? 27. B. If you have a multiyear level term policy, A. E. 60 days. A. We look forward to speaking with you. Using the nonworking spouse method, what should be the life insurance needs for a 36. What method. B. Which of the following riders should he consider? About ___ of the U.S. life insurance companies are stock companies. 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. NOT BANK GUARANTEED. You can take out a life insurance policy on your spouse if you have an insurable interest. 40. 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 E. Convince you to buy the policy that will pay her the highest commission. A. What is a Rider on a Life Insurance Policy? C. Moodys. Jumping the Wealth Curve with Edward E. Bao Jr. B. D. You can convert your policy to a permanent type at the end of the term. The companys cost of doing business. Most modern insurance covers let you add your spouse under the same policy for an additional premium, often lower than your own premium. How much storage space is required? 97. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. 26. Institutional support 28,500. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. B. A. A process has specification limits of LSL 5 540 and USL 5 550. $12,000 B. Using Exhibit 12-1, determine the life expectancy of a 40-year-old male. A. Term insurance for non-working spouse in India will be of great help. E. Credit life. Features of Life Insurance Life Insurance Underwriting Let us have a look at your work and suggest how to improve it! 93. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy. Life insurance companies pay out the proceeds when the insured dies and the beneficiary of the policy files a life insurance claim. 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). So to recap, you can not take out a life insurance policy on someone without their knowledge, and no one should be able to do it to you. Which of the following households most likely has the greatest need for life insurance? Let's review. A. Waiver of premium disability benefit B. Which of the following statements is correct? Net deposits returned to students totaled $10. What happens if you don't pay your health insurance deductible? 47. DINK stands for double income, no kids. $343,000 C. $490,000 D. $700,000 E. $750,000, 86. Jeff Willis has five kids and more debt than the, average family. Chapter 10 true and false Flashcards | Quizlet Continuing a mini-series on life insurance, he discusses life insurance for spouse (who does not work or who works part-time). Allison is a "nonworking" spouse who devotes all of her time to household activities. Using the nonworking spouse method what should be the life insurance Which method are they using to determine their life insurance needs? 37. old? 66. D. You must pay interest on any outstanding policy loans. In this episode, John continues his series on the. 99. insurance needs using the DINK method. $86,000 C. $98,000 D. $172,000 E. $217,000. Which of the following is NOT a type of permanent life insurance? \textbf{STEINER COLLEGE}\\ 59. 70. 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. Answer . 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. $140,000 B. A. Another name for temporary life insurance is A. What is your life insurance need using the DINK method? A. Another name for a straight term policy is A. Renewable term. You have no other debt. d. 28. Your spouses cover must be useful to pay for childcare expenses and all the help you need around the house. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. 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. It is more expensive than term insurance. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period. This communication strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. Or, you can call us at (800) 797-1000. This method has you multiplying your annual gross income by 70% and then multiplying that by 7. Tim and Allison are married and have two children, ages 4 and 7. Sum Assured as chosen by the Working Spouse under the Plan. Under the Multiple of Income method of estimating, life insurance needs, what important factor is excluded, 98. 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C. Final life payment. \text{Pledges receivable (net of doubtful accounts of \$280)}&&\text{5,872}\\ ^Individual death claims settled and reported in public disclosures for FY 2021-22. \qquad\text{Total net assets}&&\underline{\text{\hspace{5pt}333,940}}\\ Straight life C. Ordinary life D. Term life E. Cash value life. Which of the following riders should he consider? \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ He forgot to tell them that he had a heart condition, and, as a result of that condition, he recently died. Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death. Using the "Nonworking" Spouse Method to Determine Life Insurance Needs. \text{Liabilities:}\\ The ending balance in Accounts Payable and Accrued Liabilities was$1,935. Which of the following riders should she consider? Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? Group life C. Limited life D. Universal life E. Variable life, 49. The return on its investments. 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. B. Dun & Bradstreet. Endowment Plans You have to drive them to and from school, oversee homework and music practice. - Definition & Types, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Unique Selling Proposition (USP): Examples & Definition, What Is Product Placement? Quickly and professionally. nonworking spouse whose youngest child is 6 years old? Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? 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. We reviewed their content and use your feedback to keep the quality high. C. The policy owner can borrow any amount up to the cash value of the policy. A. 'QP2?^03dw 6x ;!;RTkz}Sc;)iI 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. Watch on to see what they are. A. 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. C. Final life payment. All of the following are major rating agencies for insurance except A. Whether you're married, domestic partners or simply sharing a life with someone you love, taking out a pair of affordable term life insurance policies can provide both financial security and peace of mind. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. What is non working spouse method? - InsuredAndMore.com Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 30. Reasons for Life Insurance Claim Rejection, Head Office : 139 P Sector - 44,Gurugram - 122003Haryana, India, www.lifeinscouncil.org | IRDAI Registration no: 136. www.irdai.gov.in WEBNJV3CHODEC17 ENG | CIN: U66010DL2007PLC248825. After you purchase a life insurance contract, you have a "free look" period that lasts A. E. Independently wealthy adult. Amy bought a life insurance policy and named Ben as her beneficiary. When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? 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. \quad\text{Unearned revenue}&&\text{900}\\ 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. 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. The income replacement approach is a method of determining the amount of life insurance you should purchase. Jeff and Erica have two children. 76. 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. Sum Assured fixed at Rs. \quad\text{With donor restrictions}&\underline{\text{\hspace{5pt}229,940}}\\ Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. A. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. 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. E. An insurance company will calculate the annual amounts to pay each person for an annuity. D. Help you select the proper kind of protection within your financial boundaries. D. Life income option. 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. 24. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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. Chapter 10 True False Flashcards | Quizlet You may not purchase insurance once your term ends. E. No interest will accumulate for any loans related to life insurance. Estimating Life Insurance Needs Using the DINK Method You Chapter 10 Personal Finance - Subjecto.com Your spouse expects to continue 44. Focus on Personal Finance: Online Textbook Help, Life Insurance Companies: Definition & Types, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, How to Estimate Life Insurance Requirements. the income provider's salary. For example, say. GST On Life Insurance Term insurance B. The Policy will terminate after payment of this benefit. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. Steiner is a private college. Amy has a master's degree in secondary education and has been teaching math for over 9 years. 2. I would definitely recommend Study.com to my colleagues. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. 67. A. 78. Please check your entries and try again. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. old? 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 . Course Hero is not sponsored or endorsed by any college or university. The premium so collected in advance shall only be adjusted on the due date of the premium. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. Further, you estimate that your funeral will cost $6,000. Which of the following is a charge you will pay when you purchase a variable annuity? Earnings Per Share Overview & Formula | How to Calculate EPS, Capital Budgeting Decisions | Examples, Techniques & Analysis, Activity-Based Costing | Formula, Examples & Benefits. B. Easy method C. DINK method D. Family need E. Soccer mom 95. With the right term insurance policy in place, stay prepared for any adversity. For example, say you're the only one working in your family and your youngest child is three. You add these numbers together: $10,000 + $50,000 + $95,000 + $800,000 + $400,000 = $1,355,000.