Based on their current life status, what are some of the goals Joanne and James should set to achieve when developing their insurance plan? What four questions should Joanne and James ask themselves as they develop the risk management plan? Once Joanne and James put their insurance plan in to action, what should they do to maintain their plan? What financial strategy would you suggest to Joanne and James to enable them to save money on their insurance premiums?
Home and Automobile Insurance
Newlyweds Joanne and James have had several milestones in the past year. They are newlyweds, recently purchased their first home and now have twins on the way! Joanne and James have to seriously consider their insurance needs. A family, a home and now babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.
Current Financial Situation:
|
Assets (Joanne and James combined): |
|
|
Checking account |
$4,300 |
|
Savings Account |
$22,200 |
|
Emergency Fund savings account |
$20,500 |
|
Retirement Account balance |
$26,000 |
|
Car |
$10,000(JOANNE) $18,000(JAMES) |
|
Liabilities (Joanne and James combined): |
|
|
Student loan balance |
$0 |
|
Credit Card Balance |
$2,000 |
|
Car Loans |
$6,000 |
|
Income: |
|
|
· JOANNE : $50,000 gross income ($37,500 net income after taxes) · JAMES:$75,000 gross income ($64,000 net income after taxes) |
|
|
Monthly Expenses (Joanne and James combined): |
|
|
Mortgage |
$1,252 |
|
Property Taxes and Insurance |
$500 |
|
Utilities |
$195 |
|
Food |
$400 |
|
Gas/Maintenance |
$275 |
|
Credit Card Payment |
$250 |
|
Car Loan Payment |
$289 |
|
Entertainment |
$300 |
Questions:
- Based on their current life status, what are some of the goals Joanne and James should set to achieve when developing their insurance plan?
- What four questions should Joanne and James ask themselves as they develop the risk management plan?
- Once Joanne and James put their insurance plan in to action, what should they do to maintain their plan?
- What financial strategy would you suggest to Joanne and James to enable them to save money on their insurance premiums?
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