EBK FOCUS ON PERSONAL FINANCE
6th Edition
ISBN: 9781260140965
Author: Kapoor
Publisher: MCGRAW HILL BOOK COMPANY
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10P
Summary Introduction
To determine: The amount of insurance needed for a family of non-working spouse with youngest child of age 5.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Give two reasons why an individual in their 20s would need life insurance. Explain
Assume that you have calculated: (a) premiums for life insurance policies and (b) payments to annuitants based upon an assumption that everybody dies before attaining age 101. Now you discover that a significant number of your policy owners are likely to live beyond age 101 and some will live to age 121. How will that affect your business?
If Gina had two qualifying persons, what would then be the total amount of qualified expenses Gina can consider take for the child and Dependent Care credit?
Knowledge Booster
Similar questions
- Child care expenses are generally deductible by the spouse with higher income in a two parents household. Question 5 options: True Falsearrow_forwardHarlow Stevens has an insurance policy that she and her three daughters, ages 5, 9, and 11, are entitled to benefits under. Which provision in her insurance policy is defined by this list of covered members? Multiple Choice - Eligibility - Assigned benefits - Benefit limits - Guaranteed renewable - Exclusions and limitationsarrow_forwardShaan and Anita are married and have two children, ages 4 and 7. Anita is a “nonworking” spouse who devotes all of her time to household activities. Estimate how much life insurance Shaan and Anita should carry. Insurance needed.... ???arrow_forward
- In 2021, Denise has two children who are qualifying persons for the Child and Dependent Care Credit, Ethan and Jeffrey. Ethan has $9,000 in dependent care expenses, and Jeffrey has none. Assuming all other tests are met, what amount of expenses is the credit based on? $3,000 $6,000 $8,000 $9,000arrow_forward3. What percentage of Mary’s income does she spend on health insurance?arrow_forwardWhen determining support for a qualifying child or qualifying relative dependent, which item is included in the potential dependent's total support? A) Funeral expenses. B) Amounts contributed to the prospective dependent's savings account. C) Funds paid for school activities for the taxpayer's child. D) A scholarship received by the taxpayer's child, who is a full-time student.arrow_forward
- Which statement describes a technique used to address the issue of ensuring the payment of adequate child support by a noncustodial parent when the parents of minor children are divorced? A) A provision in the noncustodial parent's will leaving property to the minor will solve this concern. B) To ensure that child support payments are continued if the noncustodial parent dies or becomes disabled before such payments are to cease, the parents must enter into a nuptial agreement. C) An irrevocable trust established and funded by the noncustodial parent to ensure payment of child support can be a valuable tool to protect such assets from the claims of future creditors of the noncustodial parent. D) Insurance on the life of the noncustodial parent must be owned by an irrevocable life insurance trust to prevent the noncustodial parent from changing the beneficiary.arrow_forwardIdentify which one of the following type of life insurance provides a source of regular income to the assured or to his/her dependents after the expiry of a specified period? a. With profit policy b. Term life policy c. Annuity d. Whole life policyarrow_forwardWhich of the following financial tools is especially important for parents? A. A will b. Life insurance c. Durable power of attorney and health care proxy documents d. All of the abovearrow_forward
- How much life insurance does an individual need?arrow_forwardKrista and Landor are new parents. They have a two-month-old baby girl and they are considering expanding their family in the future. They have purchased life insurance with a child coverage rider in the amount of $5,000. Unfortunately, their baby girl becomes gravely ill and passes away. How will the insurer deal with their death claim relating to the child coverage rider? Select one: a. b. The insurer will pay the claim for the full amount. The insurer will pay a claim for only half of the full amount to keep the child coverage rider in force for the next child. c. The insurer will deny the claim as Krista and Landon did not purchase accidental death insurance for theirarrow_forwardBenny is supported by the people listed below. 19-year-old child 15-year-old child 67-year-old mother In 2021, how many of these dependents will be eligible for the $500 nonrefundable Other Dependents Credit?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT