This section is dedicated to recommending and evaluating the clients’ insurance holding and needs. The main goal is to determine if the clients’ need insurance and how much. Our recommendation is to self-insure within reason. Anything that could be catastrophic and detrimental to the portfolio will be recommended that the clients’ hedge against that loss. The analysis may or may not result in a recommendation of a sale of an insurance product. Our firm will not sell the policy, but can offer recommendations as to who to purchase the policy from. Our firm will not receive kickbacks from any insurance company’s sales.
Auto Insurance Policy
Auto insurance is the most frequently purchased insurance policy in the United States. Every state requires by law has a minimum amount of coverage. In Texas the minimum coverage is 30/60/25. The first 30 means $30,000 of coverage to pay for the other driver’s medical bills. The 60 is $60,000 that is the total payout the insurance company will pay in medical bills per accident. The 25 refers to $25,000 in personal property damage which in most cases is the other person’s automobile. The limits above are the minimum, but are rarely ever enough coverage for the driver. Since Jack and Jane are driving expensive vehicles it is important to have the adequate coverage to protect them against a loss.
Our first recommendation is to purchase no/uninsured coverage, this coverage will protect Jack and Jane against other drives that are under insured or not insured at all. The coverage will kick in when the other driver’s coverage runs out even though it was the other drivers fault. The next recommendation is to purchase $200,000 of liability coverage. Having a limit that is rel...
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...erm care policies. Below is a recommend LTC policy based on the clients’ specific situation.
Monthly Benefit $5,000
Benefit Period 3 years
Elimination Period 365 days
Inflation Protection 4%
Wavier of Premium No
Based on the Wilson’s situation this is the most ideal Long-Term care policy. The policy is joint so it covers both of them. It has a reasonable benefit and inflation protection. It also has a longer waiting period, since they have a large amount of assets. The cost of this would be $8,894 a year. Below is how it will affect the portfolio if a long term care need does arise.
The analysis above is the case scenario that is when the Jane is 89 and then needs a three year stay in a long term care facility. The results show that there is no need for a long term care policy. The Wilson’s will be fine without one. Jack’s results are even better than Janes.
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