Question

Taking the role of a financial planner, let's say you have a client (named Jane), who is a single mother of two in her late twenties. Due to attractive interest rates , Jane just bought her first house. She lives in Denton, but drives to work each day in Frisco in a vehicle that she purchased, but is not fully paid for. What types of insurance does Jane need to have protection (mitigate risks) in all aspects of her life ? Describe at least five types of insurance you would advise Jane to acquire, and provide the rationale for each type.

Answer 1

There would be following type of insurances needed by her-

A. Life Insurance-this is the most important form of insurance in order to protect from the uncertainties which will be happening in life which can harm the possibility of further life.

B. Car insurance-she needs to protect any uncertainty is happening with his car with car insurance but it is shown that she is driving the car each day in order to work so she should be protecting herself through car insurance

C. Health insurances-she should be taking health insurances in order to protect herself and her family from uncertainty arising out of bad health and cost could be used so she should protect herself from health insurances

D. Home owners insurance-it is shown that she is buying her for house so she will be needing to protect from any appreciation in the value of the houses by homeowners insurance

E. Umbrella insurance-if she is sceptical about anything related to some specific part of her life, She can protect ourselves with umbrella insurance and it is a specific kind of insurance that will be reducing her cost.