BUS 215 Week 3 Discussion 2, Life Insurance

BUS 215 Week 3 Discussion 2, Life Insurance   BUS 215 Week 3 Discussion 2, Life Insurance Life insurance can be used to hedge against future risk of financial loss to others (beneficiaries) due to your (policy holder’s) death. But do youneed life insurance, and if youdo, how much do youneed? Read Chapter 12 and use the methods defined (“The Easy Method,” The DINK Method,” “The Non-Working Spouse Method,” and/or “The Family Need Method) as appropriate to conduct your assessment. Determine whether youneed life insurance. Then estimate how much, if any, life insurance youshould carry. Should youuse “term” or “whole life” to meet your needs? What other life insurance products could youuse to meet your financial goals? What is the potential that your life insurance needs will change over your life? What would be a good strategy to deal with that change? Determine what would be best for younow and in the future. Did this process reveal something new to you? Post to the discussion board a 200 word summary of your decision and what youlearned from the experience. Respond to at least two of your classmates’ postings. Depending upon a person’s circumstances and/or situation life insurance can help their surviving spouse and/or children through a rough time. My husband has life insurance, but, after reading and researching for this assignment I think we need to look intoacquiring additional coverage now that we have two smallchildren and my husband is older than I am. I determined that we need to look into the Family Need Method and use whole life to ensure our children are ok in the event that either or both of uspass away. Since I am younger than myhusband I think we should utilize whole life, that waywe pay a premium each month and we are covered for life unless we stop paying the monthly premiums. Right now I am a stay at home mom so my income will not factor into how muchwe would need. By choosing whole life we would be covered even after the premiums havebeen paid and we can barrow from the policy if an emergency should occur and the cash value of it will increase over time. It is a bit hard to estimate how much coverage we needsince my husband will be finishedwith school in November of this year and I will befinished in March of 2014. I estimate that we will need about 500,000 in coverage so that ourchildren will not have to worry about any final expenses and/or bills if either or both of us die. References: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2012). Personal Finance (10th ed.). New York: McGraw-Hill Irwin.