Module 10

Chandler and Ashley are married and are both in good health. Chandler has an annual income of $100,000 and Ashley does not work outside of the home. They have three children, ages 11, 7, and 4. Under the Non-Working Spouse Method, what is the amount of total insurance that Ashley would need?

$140,000

Jim and Susan are both in good health and Jim has a reasonably secure career. Jim currently has an income of $70,000 and has 2 children. Jim has been married to Susan for 15 years. Under the Easy Method, what is the amount of insurance Jim would need for his family?

$343,000

Christian and Monica are married and are both in good health with reasonably secure careers. Christian and Monica have annual incomes of $60,000 each. The family debts are a home mortgage of $120,000, car loans of $10,000, personal debts of $14,000, and credit card loans of $7,500. The estimated funeral cost is $6,000. Under the DINK Method, what is the amount of total insurance that Christian would need?

$81,750

Bob is the holder of an insurance policy. Bob named his wife, Patricia, as the beneficiary for the insurance policy. Bob and Patricia have three kids, Joanna, Blake, and Matt. The three children are named as the contingent beneficiaries of Bob's insurance policy. Who decides the settlement option of the policy?

Bob

This life insurance is used to pay off certain debts, such as auto loans, in the event that you die before the debts are paid in full. Which of the following is not the best buy for the amount of protection offered for an individual?

Credit life

Pam just started working at XYZ Widget Company and finally wants to get insurance coverage through her employer. 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. Which of the following life insurance policies should she apply for?

Group life

Which of the following households most likely has the greatest need for life insurance?

Household with children.

For Decreasing Term Insurance, your assets must __________ over time as your coverage ___________.

Increase; decreases

Christopher has chosen a settlement option for his insurance plan in which the arrangement is a long commitment. The beneficiary will receive the interest on the investment and there will be administrative fees associated with this option. Which settlement option did Christopher choose?

Leave the Proceeds with the Company Option

Which of the following options for settlement is designed to pay the beneficiary for as long as they live?

Life Income Option

Christina is 20 years old and is currently a college student majoring in Biology. Christina is also single. According to the table in the video, would Christina need Life Insurance and at what level?

No, she would not need Life Insurance.

Most people buy life insurance to

Protect the people who depend on the insured from financial losses caused by his or her death.

Another option, instead of purchasing Decreasing Term Insurance, that could have the same net effect is:

Purchase Term Insurance in smaller payout amounts as you age.

Which of the following is NOT a type of permanent insurance?

Term life

What is one important element of Decreasing Term Insurance?

The premiums remain the same.

All of the following are purposes of Life Insurance discussed in the video, except:

To maximize your likelihood of living longer.

Stan is 30 years old and is married to Catherine who is 27 years old. Stan and Catherine had their first child a year ago and are looking to adopt a child this summer. According to the table in the video, would Stan need Life Insurance and at what level?

Yes, he would need a substantial amount.

If you have a multiyear level term policy,

Your premium will be the same for the duration of your policy.