Question
In: Finance
How have the needs for life insurance changed with the increasing number of two-income households? Remarried...
How have the needs for life insurance changed with the increasing number of two-income households? Remarried households? What are the implications for these changes when considering the need for income replacement and funds to replace household services? (Participation in this part of the discussion question is required.)
Please share scenarios from friends or relatives describing the financial impact of death when the household had either adequate or inadequate life insurance coverage. What were the implications for the financial situation or lifestyle? (Participation in this part of the discussion question is voluntary because some students may not have an example to relate.)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Scheherazade is using the needs approach to determine how much life insurance to buy. Her needs...
Scheherazade is using the needs approach to determine how much
life insurance to buy. Her needs are as follows: cash needs
$130,000; income needs $780,000; special needs $100,000.
Scheherazade has the following assets: cash $20,000, retirement
plans $175,000, securities $35,000. She owns no individual life
insurance but has an $85,000 group life policy through her
employer. Based on this information, how much additional life
insurance should Scheherazade purchase? Be sure to show your
calculations.
Using the expense approach to assessing life insurance needs is better than the income approach for...
Using the expense approach to assessing life insurance needs is
better than the income approach for all of the reasons except:
It is more detailed.
it assess future needs that may not be
covered by present income levels.
It takes into account inflation.
It takes into account present assets that
could be used to finance future needs.
As the beneficiary of a life insurance policy, you have two options for receiving the insurance...
As the beneficiary of a life insurance policy, you have two
options for receiving the insurance proceeds. You can receive a
lump sum of $200,000 today or receive payments of $1,400 a month
for 20 years. If you can earn 6 percent on your money, which option
should you take and why?
How much life insurance should a person have if he/she desires to provide the following income...
How much life insurance should a person have if he/she desires
to provide the following income for his/her beneficiaries?
a) $30,000 per year for 20 years beginning immediately (assume
6% rate)
b) $30,000 per year for 15 years. Beginning immediately (assume
6% rate)
A researcher wishes to estimate the number of households with two computers. How large a sample...
A researcher wishes to estimate the number of households with
two computers. How large a sample is needed in order to be 98%
confident that the sample proportion will not differ from the true
proportion by more than 4%? A previous study indicates that the
proportion of households with two computers is 25%.
A researcher wishes to estimate the number of households with two computers. How large a sample...
A researcher wishes to estimate the number of households with
two computers. How large a sample is needed in order to be 99%
confident that the sample proportion will not differ from the true
proportion by more than 3%? A previous study indicates that the
proportion of households with two computers is 24%
How have marriage trends widened the gap between low-income and high-income households?
How have marriage trends widened the gap between low-income and
high-income households?
How communications and networks changed our life?
How communications and networks changed our life?
Why do we need life insurance? Who needs life insurance? Describe the different policy types and...
Why do we need life insurance? Who needs life insurance?
Describe the different policy types and the advantages and
disadvantages of each?
How have changes in societal roles for men and women changed life stresses in young and...
How have changes in societal roles for men and women changed
life stresses in young and middle adults?
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