TAILIEUCHUNG - Lecture Focus on personal finance: An active approach to help you develop successful financial skills (2e) - Chapter 10

Chapter 10 - Financial planning with life insurance. In this chapter, you will learn to: Define life insurance and determine your life insurance needs, distinguish between the types of life insurance companies and analyze various life insurance policies these companies issue, select important provisions in life insurance contracts and create a plan to buy life insurance, recognize how annuities provide financial security. | 10 Financial Planning With Life Insurance Primary Purpose of Life Insurance: Protect someone who depends on you from financial loss related to your death Reduces financial burdens of survivors Life insurance: Obtained by purchasing a policy The insurance company promises to pay a lump sum (death benefit) to a named beneficiary at the time of the policy holder’s death (or sometimes while they are still alive) 10- Objective 1 Define Life Insurance and Determine Your Life Insurance Needs Other reasons to buy life insurance: Pay off a mortgage or debts Lump-sum endowments for children Provide an education or income for children Make charitable donations Provide retirement income Accumulate savings Establish a regular income for survivors Set up an estate plan (., fund trusts with life insurance) Pay estate and gift taxes (., business owners) 10- The Principle of Life Insurance Mortality Tables-provide odds on your dying, based on your age and sex. Premium is based on life expectancy and projections for payouts for persons who die (called actuarial tables) Older people pay more because they will die sooner Face Amount- the dollar value of protection listed in the policy and amount used to calculate the premium (., $100,000) Group Term Insurance- issued to people as members of a group rather than as individuals 10- Do You Need Life Insurance? Do you have people you need to protect financially? Will your death cause them financial hardship? Are you single and have a lot of debt? Do you have parents, relatives, or a charity that you want to support? Avoid being persuaded to buy unnecessary life insurance! 10- Estimating Your Life Insurance Requirements The Easy Method 70% of your salary for seven years while your family adjusts Assumes typical family The DINK Method Dual income, no kids Assumes spouse earnings will continue Cover funeral + ½ debts The “Nonworking” Spouse Method # years until the youngest child reaches 18 X $10,000 The “Family Need”

• Tài chính doanh nghiệp
• Personal finance
• Focus on personal finance
• Financial skills
• Life insurance
• Financial planning
• Stock life insurance companies
• Personal financial planning
• Financial decisions
• Money management skills
• Money management
• Personal financial statements
• Lecture Personal finance
• Financial planning process
• Financial plans
• Personal financial process
• Financial goals
• Financial statements
• Personal balance sheet
• Personal financial
• Lecture Personal financial planning
• Characteristics of finance
• Finance tools
• Consumer credit
• Finance charge
• Protecting your credit
• Household finance
• Household structure
• Financial plan
• Calculate taxable income
• Calculate taxes owed
• Financial services
• Payment account
• Payment services
• Closed end credit
• Smart cards
• Consumer purchasing strategies
• Practical purchasing strategies
• Implied warranty
• Financing housing
• Rental activities
• Home buying process
• Automobile insurance
• Insurance company
• Insurance program
• Disability income insurance
• Health insurance sources
• Investing basics
• Evaluating bonds
• Investment program
• Investing in stocks
• Preferred stock
• Evaluate stock investments
• Common stocks
• Investing in mutual funds
• Mutual fund
• Open end funds
• Estate planning
• Starting early
• Tax sheltering
• Income taxes
• Taxable income
• Managing cash
• Purchasing decisions
• Rental option