75. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. The policy loan provision means that A. 48. Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? Can you buy life insurance for someone who is dying? \textbf{Statement of Financial Position}\\ 25,00,000 which will remain same throughout the Policy Term. A. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. STEINERCOLLEGEStatementofFinancialPositionJune30,2019(amountsinthousands), AssetsCashandcashequivalents$734Short-terminvestments7,666Tuitionandfeesreceivable(netofdoubtfulaccountsof$12)230Pledgesreceivable(netofdoubtfulaccountsof$280)5,872Prepaidassets1,364Property,plan,andequipment(netofaccumulateddepreciationof$104,240)281,404Investments(atfairvalue,costof$162,000)158,400Totalassets$455,670LiabilitiesandNetAssetsLiabilities:Accountspayableandaccruedliabilities$21,130Depositsheldincustodyforothers700Unearnedrevenue900Bondspayable99,000Totalliabilities127,730Netassets:Withoutdonorrestrictions$104,000Withdonorrestrictions229,940Totalnetassets333,940Totalliabilitiesandnetassets$455,670\begin{array}{lrr} Each of you 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. Please check your entries and try again. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. What is the amount of life insurance they should carry using the easy method? B. 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. - 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? Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. D. Insurer. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. B. You and your spouse are in good health and have reasonably secure jobs. refunds of$11,200 were given. The return on its investments. the income provider's salary. Student services 37,700 Let us have a look at your work and suggest how to improve it! 67. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. 58. \textbf{STEINER COLLEGE}\\ 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. 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. A deferred annuity allows an individual to receive payments from a life insurance policy immediately. The last thing to realize is that calculating your life insurance needs can be tricky. 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. 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. We want to help you with that. This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. Jeff and Erica have two children. 71. Catherine Carey has made the choice to stay home, and raise her three kids while her husband works. In many cases, the answer is yes. A. The first method is called the easy method. Everyone is impacted by these 5 problems. Look through financial records. 79. C. Policyholder. What is a Rider on a Life Insurance Policy? They plan to purchase life insurance using this formula: (18 - Youngest child's age) $10,000. Cash value. D. Household with children. Read this lesson to learn what methods you can use to calculate your requirements. In other words, you will have to show why you want to insure the individual. Past performance of the investment funds do not indicate the future performance of the same. DINK stands for double income, no kids. Group life B. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 62. What is the most important part of an insurance agents job? Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family need method, 31. Which statement is correct regarding mutual life. A. . D. Life income option. 101. After payment was received, tuition Amy bought a life insurance policy and named Ben as her beneficiary. Fell free get in touch with us via phone or send us a message. 46. 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Net deposits returned to students totaled $10. 1.5 lacs under Income Tax Act, 1961 and tax benefit may vary from assessee to assessee. the near future. 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. When deciding the right amount of coverage required for your spouse, everyones need may be different. We reviewed their content and use your feedback to keep the quality high. E. Your premium will be higher than a whole life policy premium. C. The mortality rate it expects among its policy holders. C. Individual retirement accounts (IRAs). Todd plans to purchase a life insurance policy from a stock life insurance company. D. Your premium will not increase when you renew it. Another name for permanent life insurance is A. GST On Life Insurance
Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. I would definitely recommend Study.com to my colleagues. A. Academic support 23,300 \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ B. Firstly, spouses who work part-time or who do not work have insurability interest, which should be maximized. Which of the following riders provided an additional benefit for his heirs? A. Waiver of premium disability benefit B. is =1.25\sigma = 1.25=1.25. Limited installment payment. Your rates will vary based on your unique circumstances, just as they would if you were single. More thorough because it also considers employer provided insurance, Social Security benefits, and liquid assets. Amy has worked with students at all levels from those with special needs to those that are gifted. 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. Your spouse expects to continue to work after your death. E. Proceeds left with the company. Is equipment floater the same as inland marine? 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. 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. DESIGNED BY: INTERSOFT ASSOCIATES. D. Term. Futures Contract in Finance Purpose & Examples | What Are Futures? Allison is a "nonworking" spouse who devotes all of her time to household activities. 78. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. 69. A. You have no plans to increase the size of your family in B. Allowed whole life insurance policies to be sold. 96. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. The cash value of the policy is expected to be Straight life. 35. Using the "nonworking" spouse method, what should, be the life insurance needs for a family whose youngest, 94. 99. Donald and Charlene are married and do not have any children. Your premium may increase if you continue it for another term because you will be older. Or, you can call us at (800) 797-1000. C: Consumer Agencies & Organizations, CLEP Financial Accounting: Study Guide & Test Prep, Introduction to Financial Accounting: Certificate Program, High School Marketing for Teachers: Help & Review, How to Choose a College: Guidance Counseling, UExcel Workplace Communications with Computers: Study Guide & Test Prep, Effective Communication in the Workplace: Certificate Program, Effective Communication in the Workplace: Help and Review, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Intro to Excel: Essential Training & Tutorials, Information Systems and Computer Applications: Certificate Program, GED Social Studies: Civics & Government, US History, Economics, Geography & World, What is Whole Life Insurance? Also, if you try to make up some of that yourself, you lose income and income potential. 76. Most people buy life insurance to A. succeed. nonworking spouse whose youngest child is 5 years old? E. Independently wealthy adult. Which of the following is NOT a type of permanent life insurance? Non-Working Spouse Method. Using the nonworking spouse method, what should be the life The insurer may tell you, or it may ask you to submit a form reporting the death. D. It builds cash value. Term insurance B. You want to purchase a life insurance policy that pays a dividend. E. Convince you to buy the policy that will pay her the highest commission. C. Administrative fee. Marianne and Roger are in good health and have reasonably secure careers. Can non-working spouses qualify for a life insurance? Buying from a financially strong company B. About ___ of the U.S. life insurance companies are stock companies. It provides both a death benefit and a savings component. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here. method, what should be your need for life insurance? \text{Investments (at fair value, cost of \$162,000)}&&\underline{\text{\hspace{5pt}158,400}}\\ This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. D. You must pay interest on any outstanding policy loans. A process has specification limits of LSL 5 540 and USL 5 550. For example, say your immediate needs upon death are $10,000 for funeral expenses, $50,000 for emergencies, and $95,000 for mortgage, credit card, and college loans. Which method are they using to determine their life insurance needs? 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. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. A. Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, What is your life insurance need using the DINK method? 51,84,468 which includes Guaranteed Sum Assured on Maturity, accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Such advance premium, if any, paid by the Policyholder shall not carry any interest. A deferred annuity allows an individual to receive payments from an annuity at some future date. How long is the grace period for health insurance policies with monthly due premiums? Yes. This method is called the non-working spouse method. A term insurance plan will also help to save taxes on the premiums under Section 80C of the IT Act. A. Adjustable life B. 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. Collections on Tuition and Fees Receivable totaled$222,600. The premium so collected in advance shall only be adjusted on the due date of the premium. In contrast to the biopsychosocial model, the biomedical model views health as ___________. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. 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. 59. All guarantees are based on the continued claims paying ability of the issuing company. You are the wage earner in a typical family, with $55,000 gross annual income. 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. \textbf{Assets}\\ If their youngest child is 5 years old, how much do they need? A. 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. 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. The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. Which of the following statements is correct? d. a way of shipping goods to customers Instruction$86,100 Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? Table lamp. A. A young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation. True. Which method are they using to determine their life insurance needs? 3.The maturity benefit calculated for a 25 years old healthy male who has opted for Canara HSBC Life Insurance Guaranteed Savings Plan with Guaranteed Savings Option through insurers website, annual premium Rs. 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. $343,000 C. $490,000 D. $700,000 E. $750,000, 85. 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. 65. Annuity Formula, Calculation & Examples | What is an Annuity? Jeff Willis has five kids and more debt than the, average family. What method. 26. T&C Apply. 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. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. You heard about several methods you can use to calculate your life insurance needs. 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. There are many situations to consider, and the methods you just heard about may or may not fit your needs. How much storage space is required? One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! Most participating policies are sold by: 102. 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. Which of the following provisions prevents the life insurance company from refusing to pay his beneficiaries because of his original misrepresentation? Estimate how much life insurance Tim and Allison should carry to cover Allison. But from a financial perspective, it does not have to be a crisisif you have good planning. This is a method that has you adding half of all your debts plus funeral expenses. Benefits of Life Insurance
Which of the following policies would meet her needs? Features of Life Insurance
Headquartered at 199 Broad Street, Red Bank NJ 07701-2056 Jumping the Wealth Curve with Edward E. Bao Jr. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 61. 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. Its free, with no obligation. 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. Its like a teacher waved a magic wand and did the work for me. a. a way of calculating an inventory's value B. Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). E. All of these. 60. Carton is 0.75 m by 0.6 m by 0.8 m. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Of the following, which one is the most positive feature of whole life insurance? D. Your policy will have the same premium as other term policies. A. The settlement option in which the company acts as trustee and pays interest to the beneficiary is called A. Lump-sum payment. You have to drive them to and from school, oversee homework and music practice. You can convert your policy to a permanent type at the end of the term. A. Fixed Annuities are long-term insurance products. This is a very common type of policy taken by homeowners who want to support their children financially. A. C. Tell you why her product is better than the competitors. Whole life. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. old? MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. Limited installment payment. 36. 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. Life income option. Sum Assured fixed at Rs. This is also the most thorough method. For a non-Working Spouse. What is the cost of living in California? One of our associate will call you back shortly. Step 1 Non-working spouse method: This method is form of insurance coverage that allows you to s. He has since died. A. you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card 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 . c. the charge per 100 pounds to ship goods by truck Whole Life Insurance
70. Required Reserve Ratio Formula | How to Calculate Required Reserves, Monthly Payment Formula | How to Calculate Loan Payments. C. Retired couple with a pension. Which of the following life insurance policies should she apply for? They plan to purchase life insurance using this formula: Current income 7 70%. Which of the following is a charge you will pay when you purchase a variable annuity? d. 28. Which of the following statements is correct? \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ B. What kind of policy would you want to purchase? All other trademarks and copyrights are the property of their respective owners. TERMS OF SERVICE Plus, get practice tests, quizzes, and personalized coaching to help you 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. B. - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. Can you get life insurance on a spouse? D. Decreasing term. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). Who will receive the benefits from her policy? Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. Here are the features of adding a Spouse Cover to your iSelect Smart360 Term Plan: Spouse Cover With the iSelect Smart360 Term Plan. Your annual income is $60,000. Ask to set up a Wealth Curve conversation.