Question

. Winston is married, has four children, owns his home, and has a roofing business. One of Winston’s children has a hereditary heart condition that requires monthly hospitalization for monitoring. What are the four major types of insurance coverage Winston would be wise to purchase? Explain WHY he needs each type of coverage.

Answer 1

The four major types of insurance coverage would be wise for Winston to purchase are :

1. Life Insurance: The reason behind taking a life insurance is providing financial benefits to family members after the death of the insured person. This is extremely important if somebody has a family that is dependent on him. Winston has a family of five members (4 children and his wife) dependent on him for their daily requirements. If there is a sudden mishap causing death of Winston, then his family would be in a great trouble without a life insurance. So life insurance is highly essential for Winston.

2. Health Insurance: One serious illness will float away all your money. So timely planning of a health insurance is a wise decision. A health insurance provides financial help to family members when they have any serious health problem.

In Winston's family one of his children has a hereditary heart problem that needs monthly hospitalization for monitoring. For this Winston needs lot of money, but he doesn't have to worry if he has a health insurance policy. So it would be wise for Winston to purchase health insurance plan.

3. Child Education Plan : Securing children's future is a great task that always comes on priority for parents. A child education plan offers combined benefits of savings and protections. The main reason behind child education plan is to provide security to a child so that his/her education will never hindered due to any mishap in the future.

Winston has four children and it is very difficult for him to highly educate all the children as he is from a middle class family. But if he has insurance for educating children then it would be a great help for him. So it would be a good decision for Winston to purchase child education plans.

4. Disability Insurance: This insurance provides coverage when you are disabled due to certain unavoidable reasons. There are many people who may become disabled before they reach retirement age. If they have a disability insurance they can lead their life smoothly and happily.

Winston has a family member of six, including himself. If he becomes disabled before his retirement age, then it would be very difficult for him and his family members to shoulder their daily expenses. Having a disability insurance at the right time, will be a great relaxer for him.