Planit:Detailed Insurance Policies Exercise Answer Key

From Planipedia

Question One:

Walter’s Whole Life Policy for $25,000 has Alice named as the beneficiary, and Walter pays $100 for it every month. Alice’s Whole Life Policy benefit of $10,000 is to go to Walter, and she pays a $60 premium every month. Walter’s 5-Year Term Insurance has a benefit of $20,000, for which Walter pays $800 each year.

Answer:

Use the menu to go directly to the Insurance screen. To be able to enter detailed insurance information, first click Policies in the upper right corner.

To add Walter’s permanent life coverage:

1. Click Policy in the right hand corner
2. Enter a Description for Walter’s life insurance.
3. Set the Account Type and Regulatory Type to Insurance Policy
4. Ensure that the Ownership is set to 100% for Walter.
5. Here you can enter the Payment Mode as Month, and the Payment Amount is $100
6. Click Save
7. Walter’s Permanent Life Policy should now appear on the summary screen. Click Coverage beside it to add benefits to the policy.
8. Enter a new Description and set the Type to Whole Life.
9. The Insured is Walter, and the Death Benefit is $25,000.
10. After setting Alice as the Beneficiary in the drop-down menu, click Save

To add Alice’s personally owned life insurance:

1. Click Policy again in the right hand corner
2. Enter a Description for Alice’s personally owned life insurance.
3. Set the Account Type and Regulatory Type to Insurance Policy
4. Ensure that the Ownership is set to 100% for Alice.
5. Here you can enter the Payment Mode of Monthly, and the Payment Amount of $60.00
6. Click Save
7. Alice’s Personal Life Policy should now appear on the summary screen. Click Coverage beside it to add value to the policy.
8. Enter a new Description and set the Type to Whole Life.
9. The Insured is Alice, and the Death Benefit is $10,000.
10. After setting Walter as the Beneficiary in the drop-down menu, click Save

To add Walter’s 5-year term life coverage:

1. Click Policy again in the right hand corner
2. Enter a Description for Walter’s life insurance.
3. Set the Account Type and Regulatory Type to Insurance Policy
4. Ensure that the Ownership is set to 100% for Walter.
5. Here you can enter the Payment Mode as Annual, and the Payment Amount is $800
6. Click Save
7. Walter’s Term Life Policy should now appear on the summary screen. Click Coverage beside it to add coverage to the policy.
8. Enter a new Description and set the Type to Term Life.
9. The Insured is Walter, and the Death Benefit is $20,000.
10. After setting Alice as the Beneficiary in the drop-down menu, click Save to return to the summary insurance screen.