Question

In: Finance

What changes would you recommend for the Brock's life insurance coverage?

Life Situation Financial Data Pam, 43 Josh, 45 3 Children, ages 16, 14 and 11 Monthly income $4,900 Living expenses $4,450 Assets $262,700 Liabilities $84,600 Emergency Fund $5,000 With three dependent children, the Brocks are assessing their life insurance. Pam has $5,000 of coverage. Josh has life insurance coverage equal to approximately eight times his annual salary. With approximately 20 years to retirement, Pam and Josh Brock want to establish a more aggressive investment program to accumulate funds for their long-term financial needs. Josh does have a retirement program at work. This money, about $110,000, is invested in various conservative mutual funds. In addition, the Brocks established their own investment program about four years ago, and today they have about $36,000 invested in conservative stocks and mutual funds. In addition to their investment program, the Brocks have accumulated $11,000 to help pay for the children’s college educations. Also, they have $5,000 tucked away in a savings account that serves as the family’s emergency fund. Finally, both will qualify for Social Security when they reach retirement age.

Q1. What changes would you recommend for the Brock's life insurance coverage?


Solutions

Expert Solution

I would recommend family whole life insurance along with the existing coverage that Josh has. I would also recommend medical insurance coverage.

Currently Pam has a very low coverage. Only Josh has a considerable coverage. Brocks have three dependants. So it is necessary for them to have insurance coverage for all of them. This will enable them to address their primary financial concern which is to accumulate enough funds to pay for the college education.

I would also like to make recommendations with regards to their investing strategy. Short term investing should include portfolio combining both growth and conservative funds which can returns for college education of the children. Long term investment should include investing in conservative bonds with high credit rating. Brocks qualify for social security scheme but still some funds should be generated for their retirement needs. Income and expense are almost same hence long term investment should have minimal risk.


Related Solutions

Explain for both of the following life situations: Would you recommend life insurance? Why or why...
Explain for both of the following life situations: Would you recommend life insurance? Why or why not? Divorced, 55 years old, $1.2 million assets, 2 kids in college, and no debt. - Minimum 125 words 24-year-old single woman, college graduate, engineer, $25,000 student loan, and $20,000 savings. - Minimum 125 words
What are the primary challenges for Alibaba? What changes, if any, would you recommend to this...
What are the primary challenges for Alibaba? What changes, if any, would you recommend to this firm?
37. In what circumstances would financial advisors recommend a life insurance policy gifting program to their...
37. In what circumstances would financial advisors recommend a life insurance policy gifting program to their clients? 46. How do policy loans in a life insurance policy work? 47. List the essential elements of a legally enforceable insurance contract. 48. Describe some key elements concerning insurance company investments (types of investment and risk)
What are two changes to the market for health services you would recommend to increase efficiency...
What are two changes to the market for health services you would recommend to increase efficiency in the market for health services and make the market more competitive?
Use the Web to find an business's antivirus policies. What changes would you recommend to that...
Use the Web to find an business's antivirus policies. What changes would you recommend to that particular organization’s antivirus policy? Your recommendation should be specific and include detailed reasons that support them.
What changes to business law would you recommend to best facilitate international transactions?
What changes to business law would you recommend to best facilitate international transactions?
if the government decides to make changes to health insurance coverage in the u.s what program...
if the government decides to make changes to health insurance coverage in the u.s what program would you change and why ?
What are the different types of insurance policies that you would recommend to protect personal risks?...
What are the different types of insurance policies that you would recommend to protect personal risks? Discuss the merits for each of the types of insurance policies.
The affordable care act what changes would you recommend to address the problem of adverse selection?
The affordable care act what changes would you recommend to address the problem of adverse selection?
What changes would you recommend to the HR system/architecture and why? For the two companies Lincoln...
What changes would you recommend to the HR system/architecture and why? For the two companies Lincoln Electric and SAS
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT