Life Insurance
Currently Jack Wilson has a group term policy provided through Texas Tech University at a cost of $5,472 a year. The policy provides a $200,000 death benefit but the cost of the policy keeps going up as Jack gets older. The goal of the life insurance section is to find the most cost effect way meet the goals of the surviving spouse in the event one spouse passes away prematurely. Life insurance should be purchased if the goals will not be met. We calculated the amount of life insurance that will be needed if the worst case scenario were to happen. The worst case timing for Jack to die would be right after retirement. If he passed away before taking TRS it could be switched to his wife and she would receive the full benefit instead of only receiving 75% of his pension. We also assumed that the living expenses would be reduced to 75% of what the current …show more content…
The major financial loss would be Jane’s ability to earn money working part-time in retirement and Social Security.
The results are clear that Jack and Jane currently are not in need of any life insurance. Jack should drop his current life insurance coverage. If for some reason Jack wants to keep a policy he should look into other more economically viable options. The Texas Tech Group policy is becoming relatively expensive compared to other policies.
Retirement Planning
This section will be about analyzing the retirement goals that you have outlined. All assets are used to fund these goals besides the art and the jewelry. The goal is to allocate the assets so that all of the goals can be funded in the cost effect way possible. Below is the outline of all the goals that Jack and Jane have specified in our first meeting.
Retirement Goals
1. Living Expenses
a. Both retired $95,000
b. Surviving Spouse $76,000
2. Health Care
a. Fund medical expenses till
Currently Jack Wilson has a group term policy provided through Texas Tech University at a cost of $5,472 a year. The policy provides a $200,000 death benefit but the cost of the policy keeps going up as Jack gets older. The goal of the life insurance section is to find the most cost effect way meet the goals of the surviving spouse in the event one spouse passes away prematurely. Life insurance should be purchased if the goals will not be met. We calculated the amount of life insurance that will be needed if the worst case scenario were to happen. The worst case timing for Jack to die would be right after retirement. If he passed away before taking TRS it could be switched to his wife and she would receive the full benefit instead of only receiving 75% of his pension. We also assumed that the living expenses would be reduced to 75% of what the current …show more content…
The major financial loss would be Jane’s ability to earn money working part-time in retirement and Social Security.
The results are clear that Jack and Jane currently are not in need of any life insurance. Jack should drop his current life insurance coverage. If for some reason Jack wants to keep a policy he should look into other more economically viable options. The Texas Tech Group policy is becoming relatively expensive compared to other policies.
Retirement Planning
This section will be about analyzing the retirement goals that you have outlined. All assets are used to fund these goals besides the art and the jewelry. The goal is to allocate the assets so that all of the goals can be funded in the cost effect way possible. Below is the outline of all the goals that Jack and Jane have specified in our first meeting.
Retirement Goals
1. Living Expenses
a. Both retired $95,000
b. Surviving Spouse $76,000
2. Health Care
a. Fund medical expenses till