the nonworking spouse method of estimating life insurance

We are living in times of uncertainty. You have no other debt. You have to drive them to and from school, oversee homework and music practice. 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? Secondly, consider the value of the unpaid work done by a spouse who spends much of their time raising children. 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. A. Your spouse expects to continue to work after your death. Allison is a "nonworking" spouse who devotes all of her time to household activities. Further, you estimate that your funeral will cost $6,000. $4,000. B. She has since died. E. A policy whose coverage stops after a period of time. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued. Can non-working spouses qualify for a life insurance? fhp>5UN.es r}"n ~c|A1mHNK|i^f>Gk aYT)s7z~fO9~krcVr2@)KTQirUQ!AP+jthG;l!9|R^7|o B. Renewable term. E. All of these affect the price. Annuities are often purchased for A. 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. Straight life C. Ordinary life D. Term life E. Cash value life. D. Your policy will have the same premium as other term policies. A. Renewable term B. Multiyear level term C. Decreasing term D. Limited payment E. Single year term. A. This method is used only to calculate child care needs, not the total financial needs of the family. Shaan and Anita are married and have two children, ages 4 and 7. Something went wrong. A. D. The beneficiary can borrow any amount up to the total benefit. Home Flashcards Chapter 10 Personal Finance. The maturity benefit is calculated for a 25 years old healthy male life who has opted for Canara HSBC Life Insurance iSelect Guaranteed Future with iAchieve plan option, monthly premium Rs.10,000 (excluding taxes), premium payment term 10 years and policy term 20 years through online sales channel. 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} The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. E. Single year term. Work with our consultant to learn what to alter. 69. \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ Were your family to lose that, you lose all of that labor. 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. False. Jeanne wants to purchase a life insurance policy with guaranteed premiums. D. An annuity is more advisable for people in poor health than for those who are likely to live longer than average. In other words, if a person's death would cause you significant financial hardship, it's an insurable interest. For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale. Investment earnings received for the period were $3,960, of which$2,070 was donor restricted for scholarships. A. $140,000 B. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old. Sum Assured fixed at Rs. f. include taxes, storage fees, and handling costs, Purchasing a life insurance policy is a basic and inexpensive task, Life insurance benefits may be used to pay off a home mortgage or other debts at the time of death, 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, Life insurance is a wise purchase of all individuals, The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets, The "Family Need" method of estimating life insurance includes factors such as social security and liquid assets, Decreasing term pays less to the beneficiary as time passes, The beneficiaries of someone who dies by suicide will never be eligible to receive any benefits from his or her life insurance policy, Competition among companies with comparable policies can affect the price a company charges for life insurance, An interest-adjusted index is a method evaluating the cost of life insurance by taking into accounting the time value of money, The lower the interest-adjusted index, the lower the cost for 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, The most common settlement option for a life insurance program is the lump-sum payment, If you switch life insurance policies, you will automatically still be insurable, Annuities are more attractive for people who expect to live only a short time, The earnings from an investments in an annuity is taxed the same as earnings from an investment in the certificate of deposit, An administrative fee of $150 per year may be deducted to cover record-keeping and other administrative expenses related to a variable annuity, When you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically, If you have misplaced a life insurance policy, your state's insurance commission may be able to help you locate it, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. I highly recommend you use this site! D. A deferred annuity allows an individual to receive payments from a life insurance policy at some future date. D. Allowed annuities to be purchased for individual retirement accounts. Table lamp. 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 case, 18 years. D. Decreasing term. Institutional support 28,500. 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. Call the State Commissioner's Office for your State. Amy has worked with students at all levels from those with special needs to those that are gifted. A. Adjustable life B. Use the easy method to determine how much insurance she should carry. 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. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 56. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. a. a way of calculating an inventory's value In order to have a valid policy, the owner must: To clearly illustrate your insurable interest. 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. Pay taxes. This gives you seven years of wages at 70%. If one should die, they think that funeral expenses would be $12,000. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. 75. Multiply the number of years until the youngest child reaches 18 by $10,000. 2003-2023 Chegg Inc. All rights reserved. This is a method that has you adding half of all your debts plus funeral expenses. 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. Holly and Matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. C. Your premium will not increase because your policy is renewable. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. All other trademarks and copyrights are the property of their respective owners. Estimate how much life insurance Tim and Allison should carry to cover Allison. Term insurance C. Whole insurance D. Variable annuity E. 401(k), 77. Whole life B. Renewable term C. Convertible term D. Decreasing term E. Multiyear level. How much term does a non-working spouse get? A. Ben. Do both you and your spouse need life insurance? A. Adjustable life B. 82. \text{Cash and cash equivalents}&&\text{\$\hspace{18pt}734}\\ You and your spouse have the following debts: Using the nonworking spouse method, what should be the life insurance needs for a 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. This method is called the non-working spouse method. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 33. A. For example, say you're the only one working in your family and your youngest child is three. Frank, age 38, was hit by a car and died. 96. Single adult living alone. 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. copyright 2003-2023 Study.com. 68. old? 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 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. determine the minimum amount of life insurance you should carry. $40,000 B. 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. Nonworking spouse method is a type of insurance policy where without working you can support your children until they turn 18 years old.

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