Term
| the various family needs that must be met in the family head should die are analyzed, and the amt of money needed to meet these needs is determined |
|
Definition
|
|
Term
| in the needs approach, after the amt of money needed to meet needs is determined, the total amt of existing life insurance and financial assets is then subtracted from the |
|
Definition
|
|
Term
-estate clearance fund
-income during the readjustment period
-income during the dependency period
-life income to the surviving spouse
-special needs
-retirement needs |
|
Definition
| most important family needs |
|
|
Term
| needed immediately when the family head dies (aka clean-up fund) |
|
Definition
|
|
Term
| immediate cash is needed for burial expenses; uninsured medical bills; installment debts; estate administration expenses; and estate, inheritance, and income taxes |
|
Definition
|
|
Term
| a one- or two-year period following the breadwinner's death |
|
Definition
|
|
Term
| during this period, the family should receive approximately the same amt of income received while the family head was alive |
|
Definition
|
|
Term
| the purpose of the readjustment period is to give the family time to |
|
Definition
| adjust its living stds to a different level |
|
|
Term
| follows the readjustment period |
|
Definition
|
|
Term
| the dependency period is the period until the youngest child reaches age |
|
Definition
|
|
Term
| the family should receive income during this period so that the surviving spouse can remain at home, if necessary, to care for the children |
|
Definition
|
|
Term
| the income needed during the dependency period is substantially reduced if the surviving spouse is |
|
Definition
| already in the labor force and plans to continue working |
|
|
Term
| an important need after premature death is to provide what to the surviving spouse? |
|
Definition
|
|
Term
| two income periods that must be considered when providing life income to the surviving spouse |
|
Definition
| income during the blackout period and income to supplement social security benefits after the black out period |
|
|
Term
| refers to the period from the time that social security survivor benefits terminate to the time the benefits are resumed |
|
Definition
|
|
Term
| when do social security survivor benefits that provide life income to the spouse terminate? |
|
Definition
| when the youngest child reaches age 16 |
|
|
Term
| when do social security survivor benefits that provide life income to the spouse start up again? |
|
Definition
| when the spouse reaches age 60 |
|
|
