Question

1.Life Insurance

Obtain a term life insurance quote on yourself and compare it to a whole life insurance quote on yourself. Based on what you've read about life insurance, which would be better for you?

2.Auto Insurance

(a). Obtain a liability insurance quote on the car that you would like to own.

(b). Compare that quote to one with liability & collision.

(c). Compare that quote to one with liability, collision, & comprehensive

(d). How would those quotes change if you increased the coverage limits?

Answer 1

1. The selection of insurance depends upon the age and the purpose of purchasing the insurance.

Term Insurance is the life insurance where the company guarantees compensation for the loss, damage, death in consideration for the premium amount. It provides coverage for specific time period.

Whole life insurance is the permanent life insurance. It is the insurance for the life of the insured and provides accumulated cash value.

On the basis of quote, term life insurance is cheaper as it contains only life cover but whole life insurance acts as an investment and insurance coverage also.

If the financial obligations of the insured are greater and age is around 35 years old, then term life insurance can be purchased.

If the insured can afford to pay for the premiums of the whole life insurance, then it is always better to opt it as it provides death benefit and the cash value to the beneficiaries. It also builds accumulated amount at the time of retirement.

2. We are considering auto insurance of Honda Accord car:

• Liability insurance quote= $1644 per year
• Quote with liability and collision= $3947 per year
• Quote with liability, comprehensive and collision= $5760 per year

The quotes with change with the changes in coverage limit accordingly. These are the average quotes given for the insurance of Honda Accord. The various insurance calculators are available online through which the premium amount can be calculated given the area, age and the coverage type and the amount.