ht _rels/.rels ( J1!}7*"loD c2Haa-?_zwxm Using the easy Securities offered through Purshe Kaplan Sterling Investments, MemberFINRA/SIPCHeadquartered at 80 State Street, Albany, NY 12207. B. Now, you take this number and subtract your available assets from this number. You are the wage earner in a typical family, with $55,000 gross annual income. Were your family to lose that, you lose all of that labor. Which of the following provisions will affect the amount of money his beneficiaries will receive? 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. D. Decreasing term. \quad\text{Deposits held in custody for others}&&\text{700}\\ A. Which method are they using to determine their life insurance needs? B. Sum Assured fixed at Rs. E. None of these. Limited installment payment. \qquad\text{Total liabilities}&&\text{127,730}\\[3pt] Each of you If you have a multiyear level term policy, A. ^Individual death claims settled and reported in public disclosures for FY 2021-22. 65. Straight life. 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. Group life C. Limited life D. Universal life E. Variable life, 49. What percentage of your income should you spend on life insurance? Types of Life Insurance Which of the following provisions allows her to keep her coverage if she is a couple of weeks late with paying her premium? was specifically designed for someone in her situation? Which method are they using to determine their life insurance needs? 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. The ending balance in Accounts Payable and Accrued Liabilities was$1,935. Bonnie is most concerned about being able to buy additional insurance without undergoing medical exams. 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. B. Riders in Insurance Table lamp. Use Exhibit 1-B. 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. A. Limited installment payment. Protection against loss of life for a specified term. Allison is a "nonworking" spouse who devotes all of her time to household activities. What kind of policy would you want to purchase? This term life policy will guarantee that you will pay the same premium for the duration of your policy. Which of the following policies would meet her needs? $86,000 C. $98,000 D. $172,000 E. $217,000. However, at a minimum, you should consider the financial value of child care, house care, and other domestic services that your spouse has been taking care of at present. D. Term. E. It is better to fund an IRA, Keogh, or 401(k) before buying an annuity. \quad\text{Total assets}&&\underline{\underline{\text{\$\hspace{1pt}455,670}}}\\[5pt] They plan to purchase life insurance using this formula: (18 Youngest childs age) $10,000. $12,000 in 15 years. With comprehensive coverage features like accidental benefit, increasing/ decreasing cover and whole life cover, the policy also offers a Spouse cover. Your spouse expects to continue to work after your death. The DINK method has you adding half of all your debts to your funeral expenses. Preserved the tax advantage of annuities but curtailed deductions for IRAs. determine the minimum amount of life insurance you should carry. 401(k) plans. D. Life income option. Mildred was diagnosed with terminal cancer and knows that she doesnt have long to live. Marianne and Roger are in good health and have reasonably secure careers. Wendy has had a life insurance policy for five years. 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. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 28. The income replacement approach is a method of determining the amount of life insurance you should purchase. A. Sum Assured fixed at Rs. 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? 40. 69. Allowed whole life insurance policies to be sold. Which of the following is NOT a type of permanent life insurance? 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. Which of the following is a charge you will pay when you purchase a variable annuity? D. Your premium will not increase when you renew it. 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. You want to purchase a life insurance policy that pays a dividend. Investment Advisory Services provided by Smallwood Wealth Investment Management, LLC, an SEC registered investment advisor. False. Estimate how much life insurance Shaan and Anita should carry. NOT FDIC INSURED. You have no other debt. You have no plans to increase the size of your family in - Definition & Examples, Strategies for Effective Consumer Relations, Cross-Selling in Retail: Techniques & Examples, Working Scholars Bringing Tuition-Free College to the Community. The first method is called the easy method. In this case, the only type of life insurance policy you can buy is a guaranteed issue policy. Whole Life Insurance The "Nonworking" spouse method of estimating life insurance includes factors such as Social Security and liquid assets. The question is, how big are yours? B. Option to add Optional In-Built Covers or choose a Benefit Payout Option other than Lumpsum is not available to non-Working Spouse. This is also the most thorough method. Is life insurance for married couples cheaper? This problem has been solved! A. E. It is permanent life insurance. 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. Using the DINK method, what should be your need for life insurance? D. Insurer. 72. Get unlimited access to over 88,000 lessons. They have determined that their annual income is $70,000 and their net worth is now $150,000. 36. 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. Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 5 years old? nonworking spouse whose youngest child is 5 years old? A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 57. 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. The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020. A. Incontestability clause B. Misstatement of age provision C. Naming a beneficiary D. Policy reinstatement E. The grace period, 55. 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. $10,000 + ($30,000 / 2) + ($11,000 / 2) + ($5,000 / 2) = $10,000 + $15,000 + $5,500 + $2,500 = $33,000. 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. C. Individual retirement accounts (IRAs). 99. Dividend policy B. Nonparticipating policy C. Mutual policy D. Participating policy E. Stock policy, 34. the near future. A. Adjustable life B. They have determined that their annual income is $70,000 and their net worth is now $150,000. 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. e. a place in which to keep products until they are needed 37. \quad\text{Without donor restrictions}&\text{\$\hspace{1pt}104,000}\\ 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. 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. E. The policy requires that you pay a specified premium each year for the rest of your life. to work after your death. Life insurance policies, even joint policies, are rated based on your age, health conditions and coverage amount. makes about $38,000 annually. Find the CpC_pCp and CpkC_{pk}Cpk capability indexes if. C. Your premium will be the same for the duration of your policy. One of our associate will call you back shortly. 46,800/- is calculated at the highest tax slab of 31.2%(including 4% cess) for an individual assessee on life insurance premium of Rs. B. Bens beneficiaries. B. 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, 33. Both you and the spouse are covered throughout the policy term for your respective separate sums assured. 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. When deciding the right amount of coverage required for your spouse, everyones need may be different. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Which of the following riders should she consider? C. Ordinary life. The big question is how much term life insurance for the non-working spouse (or stay-at-home parent) you should have. Fixed annuity B. Experts are tested by Chegg as specialists in their subject area. Sum Assured as chosen by the Working Spouse under the Plan. Before you purchase, be sure to talk to your financial professional about the annuitys features, benefits, and fees and whether the annuity is appropriate for you, based on your financial situation and objectives. 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. A. Adjustable life B. What is the most important part of an insurance agents job? It is important to replace all of the income lost when an employed family member dies when using the human-life approach. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions. One such cover by Canara HSBC Life Insurance Company is the iSelect Smart360 Term Plan. Important Life Insurance Policy Provisions, After-Tax Rate of Return: Definition & Formula, Standard Deviation of Returns | Overview, Investment Volatility & Formula. For example, say. Insurance Need: . 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. Can you buy life insurance for someone who is dying? This is a method that has you multiplying the number of years it takes the youngest child to reach 18 by $10,000. We want to help you with that. Polly wants the opportunity to change the amount she pays for her annual premium through the life of her insurance policy without changing her coverage. Which of the following is NOT a type of permanent insurance? Which of the following riders should he consider? All other trademarks and copyrights are the property of their respective owners. A. 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. E. None of these is correct. . Lastly, it allows you to keep your future obligations: college, paying off debts, weddings, bar mitzvahs and bat mitzvahs, sweet sixteens, and all the other things that you want to do for your kids. Reasons for Life Insurance Claim Rejection, Head Office : 139 P Sector - 44,Gurugram - 122003Haryana, India, | IRDAI Registration no: 136. WEBNJV3CHODEC17 ENG | CIN: U66010DL2007PLC248825. The provisions of Income Tax Act, 1961 are subject to amendments made by the government from time to time. To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of. If one should die, they think that funeral expenses would be $12,000. Estimate your total T&C Apply. The Policy Term, Premium Payment Term and the premium payment mode remains the same for the Spouse, as yours. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method, 29. loans. 24. 71. D. You must pay interest on any outstanding policy loans. Best Investment Options in India We are living in times of uncertainty. This gives you seven years of wages at 70%. \textbf{(amounts in thousands)}\\ E. Your premium will be higher than a whole life policy premium. $13,000 B. B. 1. It will take your youngest child 15 more years to reach 18. Create your account, 18 chapters | It equals the cost of replacing the property. She may need to change her coverage as her needs change. insurance needs for a family whose youngest child is 5 years B. Pam just started working at XYZ Widget Company and finally wants to get insurance coverage. Besides getting money into the family, the non-working spouse holds a responsibility for everything that doesnt offer bonus, perks, and promotions. Allison is a "nonworking" spouse who devotes all of her time to household activities. d. 28. a. a way of calculating an inventory's value Canara HSBC Life Insurance Company Limited is only the name of the insurance company and Canara HSBC Life Insurance Invest 4G is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Single adult living alone. C. It is better to fund a variable annuity before fully funding your IRA, Keogh, or 401(k). 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. C. The policy owner can borrow any amount up to the cash value of the policy. Your premium will not increase when you renew it. Of the following, which one is the most positive feature of whole life insurance? 46. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. Something went wrong. 47. All guarantees are based on the continued claims paying ability of the issuing company. You have to drive them to and from school, oversee homework and music practice. Accidental death benefit C. Guaranteed insurability option D. Cost-of-living protection E. Accelerated benefits, 64. Which of the following is the process of getting oxygen from the environment to the tissues of the body? Multiply the number of years until the youngest child reaches 18 by $10,000. Jeff and Erica have two children. Net deposits returned to students totaled $10. But from a financial perspective, it does not have to be a crisisif you have good planning. What kind of policy would she want to purchase? A. Ben. This gives you 7 years of wages at 70%. Term insurance C. Whole life insurance D. Variable annuity E. 401(k). \text{Property, plan, and equipment (net of accumulated depreciation of \$104,240)}&&\text{281,404}\\ 3 days. One of the most common questions we hear is, Can my non-working spouse qualify for life insurance? The answer is yes! The sooner a person is likely to die, the lower the premiums he or she will pay. Such advance premium, if any, paid by the Policyholder shall not carry any interest. 59. Easy method C. DINK method D. Family need E. Soccer mom 95. 2,10,000, (excluding taxes) premium payment term 10 years and policy term 20 years. Also, if you try to make up some of that yourself, you lose income and income potential. Course Hero is not sponsored or endorsed by any college or university. The goal of this approach is to replace the primary breadwinner's salary for a predetermined number of years. Which of the following is NOT a factor that affects the price a company charges for a life insurance policy? Note: The categorization of Spouse into Working and Non-Working will be as per the Companys Board Approved Underwriting Policy (BAUP). What is your life insurance need using the DINK method? A. 2. You heard about several methods you can use to calculate your life insurance needs. A deferred annuity allows an individual to receive payments from an annuity immediately. There are many situations to consider, and the methods you just heard about may or may not fit your needs. Which of the following riders should he consider? $343,000 C. $490,000 D. $700,000 E. $750,000, 86. 70. method, what should be your need for life insurance? B. 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.