Question

Jeff and Susan are divorced. They have three children together of ages 8, 11, and 14. The youngest child has a medical condition that requires regular trips to the doctor. Both of them work for the same company, and each of them has the same $10,000 life insurance coverage.

How much (amount) of life insurance is needed, who should be covered by the proposed insurance, what type of life insurance would you recommend, and what other factors should be considered prior to the purchase of life insurance?

Answer 1

Generally insuarnce cover should be 10 times of gross Income of the Individual. if they have children insurance cover should add education Expenses also.

Each has $10,000 life Insurance Coverage . i think it is not suffient of total $20,000 . the insurance cover should be minimum $1,00,000 to $ 200,000 for whole family and younger son is also medical problems.

More amount of Insurance shall be taken on younger son because of his medical conditoons.

Term life insurance is best option shall be taken for the couple who got divorsed and their three children.

Term Life Insurance is pure risk cover plan that offers high covergae at low premiums.

It is Death risk cover for Specified Period.

Factors :

1. whether do we need a Life Insurance

                     if single - No

                     if maily - definitely Yes

2. What type of Insurance cover reqire and How long it is required

3 . How Much do we require ; it depends on various scenarios like to pay off any loans or Debts

                                Expenses we may incur for any pre existing medical conditons

                                Children Educations and other expenses

4 How much we can afford : it depends on the amount of Income we earned and after deducting the expenses. the savings will decide how much we can afford

5.Have to get the quotes from Difference Insurance Cmpanies and select the best quote from that.

6.Understading the postion of the company and its past experince about payment of claims.

7. should have a knowledge on whole policy we are taking.