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.)

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jeff jeffy answered 2 years ago

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.

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.

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%

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How have the needs for life insurance changed with the increasing number of two-income households? Remarried...

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Using the expense approach to assessing life insurance needs is better than the income approach for...

Scheherazade is using the needs approach to determine how much life insurance to buy. Her needs...

As the beneficiary of a life insurance policy, you have two options for receiving the insurance...

How much life insurance should a person have if he/she desires to provide the following income...

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...

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