Exam (elaborations)
RMI_FIN 3100 Exam #4 Marlett (ch. 11 & 15) .
- Module
- HOSP final exam
- Institution
- HOSP Final Exam
RMI_FIN 3100 Exam #4 Marlett (ch. 11 & 15) .
[Show more]
Seller
Follow
Content preview
RMI/FIN 3100 Exam #4 Marlett (ch. 11 & 15)Life insurance is justified if - ANS-the insured has earned income and others are
dependent on them financially
Ways to estimate amount of life insurance - ANS-human life value and needs approach
Human Life Value - ANS-present value of the families share of deceased breadwinner's
future earnings. Annual earnings of productive lifetime minus taxes, insurance
premiums and self maintenance costs
Needs Approach - ANS-depends on the needs that must be met if the family head
should die
Estate Clearance Fund - ANS-cash needed for uninsured medical bills, burial expenses,
and taxes (considered under needs approach)
Readjustment Period - ANS-1-2 year period in which family adjusts to living standard
(considered under needs approach)
Dependency Period - ANS-period until the youngest child reaches age 18 (considered
under needs approach)
Blackout Period - ANS-period from the time that Social Security survivor benefits
terminate to the time the benefits are resumed (considered under needs approach for
surviving spouse during and after period)
Special Needs - ANS-refers to other cases such as funds for college education and
emergencies (considered under needs approach)
how many families have no life insurance - ANS-1 in 5
Types of life insurance - ANS-term insurance and cash-value/whole life insurance
term insurance - ANS-provides temporary protection. Appropriate when limited amount
can be spent on life insurance and need for protection is temporary. Most are renewable
and premiums increase each renewal. Most are also convertible, so they can be
exchanged for cash-value policy. Premiums increase at increasing rate reaching
prohibitive levels
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller denicetho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.16. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73243 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now