In: Operations Management
Mary (32) and Bob (37) own a home (mortgage is $1800 per month, $200,000 for next 22 years), 2 cars ; a 2014 Ford Truck; a 2015 Toyota Prius with a $350 car payment per month Mary recently completed her CPA requirements and started her practice and began working from home 6 months ago (annual average salary $65,000) and Bob works as a athletic shoe designer for Skechers (annual average salary $125,000). Bob travels extensively. Mary has no life insurance and no retirement plan. Bob provides the medical benefits for the family and has a retirement plan (401K @ 125,000) through work plus life insurance equal to his annual salary. Mary and Bob have one son, a 3 year old, Bob Jr. Bob’s mother, Betsy (62) lives with them in an in-law apartment on the premises and has her own car. Mary and Bob subsidize Betsy’s medical expenses and in the last year, Mary has been her primary caregiver as Betsy has a heart problem and has been in and out of the hospital for the last six months. They have a dog name Risky.
Using the steps in the Risk Management process describe how you would determine and address/resolve the insurance needs, retirement needs, provide college savings, etc. In your answer indicate which insurance products or other tools/programs you would use/implement to ‘cover’ the risks/exposures of this family.
Answer:
Risk Management process – As per the risk management process, we need to review the risks for the family and their in-laws so that they can take appropriate action to cover their family’s risk, risk for their in-law and any other risk associated with them.
Mary and Bob are spouse in the family and they had one son of 3 years age.
We need to select the below insurance products for the above needs as