PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 10, Problem 7FPE
Summary Introduction
To identify: The appropriate type of supplemental insurance for the L family in the light of their expressed concerned.
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Students have asked these similar questions
Vern has a whole life policy, and he has named his wife Corinne as a revocable
beneficiary. He is considering changing her status to an irrevocable beneficiary, but is
unsure of the potential consequences. If Vern makes Corinne irrevocable beneficiary,
what actions can he still take without Corinne's permission?
i) Receive policy dividends.
ii) Obtain a policy loan.
iii) Assign the policy.
iv) Let the policy lapse.
a) i) and ii)
Ob) i) an iv)
c) ii) and iii)
d) iii) and iv)
Which of the following situations describes a risk exposure that can be most appropriately insured against with an individual disability income policy?
A)A self-employed bookkeeper earns $40,000 a year out of a small office located in her neighborhood, and wants to protect her income.
B)A lawyer wants to make sure his business overhead expenses are covered if he becomes disabled.
C)A couple with a military retirement income manages a self-storage business, and they are compensated with a place to live that is on the premises of the business.
D)An accountant's spouse owns the building in which the accounting office is located. All of the practice’s income is used to pay rent and other business expenses, so the accountant has no compensation from the business.
François, an insurance agent with Safe Life Insurance Co., meets with Thomas and Annie Fortin to
assess their life insurance needs. The Fortins are a single-income family with two children: a two-year-
old and a four-year-old. Annie, the sole income earner, is an anesthetist with a hectic and unpredictable
work schedule at the hospital Thomas is the primary caregiver and stay-at-home parent. He does not
earn an income. Annie's income is sufficient to cover the family's savings and expenses.
During the meeting, François gathers relevant information to assess the loss of income that would
result from Annie's death. Should François also assess the financial impact that would result from
Thomas's death?
Select one correct answer from the list
1. Yes, Thomas's sense of self-worth would suffer if he was not included in the analysis
Yes, Thomas' death may have a financial impact on Annie's ability to keep earning a sufficient income.
No, Annie's income already covers the family's savings and…
Chapter 10 Solutions
PFIN 7:STUDENT EDITION-TEXT
Ch. 10 - Prob. 1LOCh. 10 - Identify the types of coverage provided by...Ch. 10 - Prob. 3LOCh. 10 - Prob. 4LOCh. 10 - Prob. 5LOCh. 10 - Choose a property and liability insurance agent...Ch. 10 - Prob. 1FPECh. 10 - Last year, Thea and Rory Brown bought a home with...Ch. 10 - Prob. 3FPECh. 10 - Prob. 4FPE
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