Life Insurance, BC Canada HLLQP STUDY | 240 Rated 100% Correct!!
3 phrases of Against Permanent Loss of income( Income earner dies) - Readjustment period, Dependency Period, Survivor life income needs Capital retention approach - Today's value of income needs + cash needs = insurance needs Two common method for calculate life insurance needs - Capitalization of income approach(lifevalue approach) and Capital retention approach Capitalization of income approach(life- value approach) - Annual Income / interest rate = life value (how much one's earning worth in today's value ). Ex, 30,000 / 0.05= 600,000 If I put 600,000 in a 5% investment, I have 30000 per year Types of Estate planning needs - Principal Resident,Cottage ,Investment( i)interest ii)Dividends iii) capital gain 3 factors that contribute to the coverage needed for Against Temporary Loss of Income - 1.Earned income (active income), 2.Other source of disability benefits, 3.Tax bracket. Note: the benefit payment amount is ""monthly"" ›Be care full when reading the question -Annual income or monthly income? 3 sections of Completing Application Form - 1. Personal information of the insured 2. Medical Information of the life insured 3.Product detailsPoor estate planning may not be able - -to pay off the Final income tax with enough cash and the estate is forced to sell some important assets
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