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AN INSURANCE PLANNING MINI-CASE Kevin and Sonya Shim are conducting an insurance review with their financial planner. Kevin and Sonya consider themselves middle-Americanswith a small

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AN INSURANCE PLANNING MINI-CASE Kevin and Sonya Shim are conducting an insurance review with their financial planner. Kevin and Sonya consider themselves middle-Americanswith a small but positive cash flow and a modest net worth. Kevin (age sixty-three) is just a few years away from retirement, whereas Sonya (age sixty-one) plans to work a few more years once Kevin officially retires. The following discussion provides a summary of the Shims' insurance planning situation. Life Insurance Kevin owns a $250,000 universal life insurance policy. Sonya is the insured and their son Wilbur (age thirty-seven) is the beneficiary. The policy has a cash value of $23,450 and a living benefits provision; all account earnings are used to offset premium expenses. Sonya owns a twenty-year $100,000 level-term life policy that she purchased five years ago. She pays approximately $450 per year in premium costs. Property and Casualty Insurance Kevin and Sonnown a home as TWROS that has a market and replacement value AN INSURANCE PLANNING MINI-CASE Kevin and Sonya Shim are conducting an insurance review with their financial planner. Kevin and Sonya consider themselves middle-Americanswith a small but positive cash flow and a modest net worth. Kevin (age sixty-three) is just a few years away from retirement, whereas Sonya (age sixty-one) plans to work a few more years once Kevin officially retires. The following discussion provides a summary of the Shims' insurance planning situation. Life Insurance Kevin owns a $250,000 universal life insurance policy. Sonya is the insured and their son Wilbur (age thirty-seven) is the beneficiary. The policy has a cash value of $23,450 and a living benefits provision; all account earnings are used to offset premium expenses. Sonya owns a twenty-year $100,000 level-term life policy that she purchased five years ago. She pays approximately $450 per year in premium costs. Property and Casualty Insurance Kevin and Sonnown a home as TWROS that has a market and replacement value

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