Running Head: Insurance 1

Paper on

Insurance

By XxX

Dated:
Insurance 2

1.

Keeping in mind the potential objectives and their incomes and expenses. It can also be seen that

the potential reasoning behind the fact is that the company tends to be provocative, the overall

mix suggest that a secured insurance should be provided in order to hold the premiums steady,

allow potential for growth and be secured for the future. Hence this insurance would enable them

to attain all three of her objectives.

2.

The primary difference between LCOI and YRT mortality deductions are that LCOI remains

constant over the years and YRT increases with the coming years. This induces that initial

premiums of YRT would be Lower than LCOI and the building of value is quicker in LCOI.

Hence when the policyholder grows old the premium becomes very costly. It might have a good

start but has a dramatic end. So Mabel is going to pay a fixed amount, whereas Faith is going to

start low but increase his premiums overtime.

3.

Davids Earnings = $52,000

Catherines Earnings =$58,000

Life Coverage = $500,000

House = $250,000

Down Payment = $120,000

Mortgage term = 20 years

Insurance 3

Current Mortgage = $118,000

Car Loan = $12,000

Car Loan Term = 3 years

Overall Income = $110,000

Per Annum House installment = $6,500

Per Annum Car Installment = $4,000

They can afford $500,000 life insurance if the premium is around $20,000. This implicitly

denotes that the potential reasoning and denotes the component that highlights the potential

direction of the couple that is geared towards development.

4.

It can be seen that the potential of this type of disability should not remove him from his current

capacity and it is also induced that the potential composition of this type induces the promotion

of a lifestyle that remains undisturbed in case his health suffers. This is the potential of the

insurance that will not let go of his passion.

5.

In this case of Layton, his previous salary was $4,600. His salary after the duration is $2,500. His

disability benefits are $3,100 this makes his monthly inflow of $5,600. This increase is in fact to

maintain his damaged knee. The net proceeds from disability would be

After Tax Disability Benefit = Pre Tax Benefit * (1 Tax rate)

Insurance 4

After Tax Disability benefit = $3,100*12*(1-38%)

After Tax Disability benefit = $37,200*62% = $23,064