Case 2.1 Whole Life Insurance Case

Alan has two life insurance policies. He has a $200,000 group term policy where his mother is the beneficiary and a $100,000 term policy where is estate is the beneficiary. The policy where Alan’s mother is the beneficiary it will not be included in your overall coverage. If you would like it included it is possible to change the beneficiary with Alan’s mother’s permission. This is addressed in the estate planning recommendation (beneficiary review). Alan’s total coverage excluding the policy where his mother is the beneficiary is $100,000.

Elyse also has two policies. One $48,000 group term and one $50,000 whole life policy. Jerry Jr. and Christopher are the beneficiaries of both policies. Elyse’s total coverage is $98,000.

I am recommending additional life insurance for Alan and possibly Elyse per the below information that you provided in our initial meeting. In my very basic review and I recommend that Alan buy an additional $950,000 whole life policy with $1,500 annual premiums. This was chosen by evaluating Alan’s future lifetime earnings. In future meetings we will need to gather more information about your future expenses so I can do a more thorough review of your life insurance needs. We are missing your personal consumption %. Having this amount will give us a better idea of your cash needs.

This policy will provide adequate protection while you two are both saving for your retirement goal. The policy was also chosen because it provides the best protection in the most affordable way. It is important for Alan to have the largest amount of insurance because he is the breadwinner of the family. More information is needed to determine if Elyse needs more life insurance