Question

1. 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

Answer 1

Answer:

Life Insurance- It is a contract between insurance company and individual (insurer) where the insurance company promises to pay a sum of amount on the death of the insurer or person whose name is the policy. Insurer pays regular insurance premium after taking an insurance policy and his nominee is given a sum of money on his death. There are many insurance companies in the world. Insurance has become the need of an hour.

Divorced, 55 years old, $1.2 million assets, 2 kids in college, and no debt.

It is not mentioned whether the person is man or woman but insurance is must of everyone, I am assuming it a Man. I will strongly recommend life insurance for him because of the following reasons:

1. He is getting old, he has two dependent children so if he dies early, life insurance will help his children to build their future and they will be able to finish their studies. After his death, life insurance will provide protection to his children.
2. He has no debt, he has got good amount of assets, he can very well pay the premium of insurance policy so he must go for it.
3. The life insurance policy will provide him cover even after his retirement when his employer will not provide him insurance.

24-year-old single woman, college graduate, engineer, $25,000 student loan, and $20,000 savings.

I will recommend Life insurance for her as well because of the following reasons-

1. If she goes for life insurance now, as she is in her early 20s, she will get a good insurance policy with lower premium and good benefits.
2. There are many life insurance policies that provide nice maturity benefits and bonus so the life insurance policy will provide her a sum of money that will help her in her 50s and even after retirement.
3. This will provide protection to her family.
4. This will also enable her nominee to spend the money in the future requirements.