Below are three examples of prospects a typical life insurance agent might run into. By utilizing either of the Needs Analysis sheets available on D2L with any other tools you deem necessary, analyze the life scenarios of the below examples. Based upon the information you have available, craft a life insurance plan that will provide life insurance to the individuals in the scenarios suited to their specific needs.

In a word document, answer what your advice is to each prospect. Advice includes, how much life insurance they should have, what kinds of life insurance (includes term periods if utilizing term insurance), of any techniques utilized to structure a specific life insurance plan, and any other topics. Please explain your rationale for each of your decisions. The more detailed and descriptive you are, explaining your reasons for each decision, as well as, ease of reading. Do not fret over being 100% correct on any final plan, on determining which product works best. Instead, your focus needs to be more on clarity of communication and the persuasiveness of your advice.

1. Brandon and Eric are a recently married couple. Brandon is a 42-years-old Senior Manager for a large retail company earning $125,000 per year. Eric is a 38-year-old professional dancer and dance instructor earning $60,000 per year. Brandon and Eric just purchased a home worth $375,000, but they put a 20% down payment on their home. Eric has a daughter, Mary, from his previous marriage. She is currently 17-years old. Eric still has some student loan debt, totaling $18,000. Despite being in a relationship together for two years, they keep their money and personal finance’s separate and split all of their bills. Brandon is willing to combine their finances and pay off Eric’s student loan, however, Eric is still resistant. Brandon figure’s he has 23 additional years to work before he retires. He has $800,000 in his 401(k) and invests 25% of his income. Eric has not specific plans for retirement. He has no money saved up, and has a few small debts totally $7,800. Brandon wants to guarantee that Eric’s life style won’t be significantly reduced if Brandon passes prior to when Eric would turn 65. Eric wants to ensure that if he predeceases Brandon, that he doesn’t leave any issues behind for Brandon to clean up, he wants to make sure the house would be paid off, and would like to provide a guaranteed income of $3,000 per month to Mary, his daughter. Brandon is worried about wasting money on life insurance, and is open to options to decrease his cost of owning life insurance.

2. Mary Jane recently became the head of her household. Her ex-husband pays her child support for each of their 3-children, totaling $1,200 per month ($400 per child). She recently bought the home that her and her three children live. The mortgage on the house is for $210,000. Mary Jane has a small “emergency” fund of $1000. She works for a large banking company, making $68,000 per year in accounting. Her children are, Hayden (16), Phoenix (11), and Ryman (7). She knows that her ex-husband Jack will take excellent care for the children, but she’s worried about making sure all three boys will be given the best chance at a good life she could give.

3. Fred and Wilma are 69 and 67 years of age, respectively. Both have retired. Fred was a construction foreman, earned $85,000 per year in the last years of his career. Wilma was the head of marketing at a Fortune 500 company and had earned $128,000 per year. They have about $1.2M saved up in various retirement accounts. They did have insurance provided through their employers, however, now that they are both retired, they no longer have group life insurance. Wilma just received a retirement gift of $50,000 cash payout for the time of service. Fred has a pension that pays him $2,000 per month, which increases each year based on the economy. He also received social security benefits of $964 per month. Wilma did not have a pension, however, has a 401(k) with a $1M balance. Her social security benefits payout $1,351 per month. Wilma knows that they do not have enough money saved to survive for 30 years, and is open to strategies that can help ensure there will be money there for the other. They do still have a small mortgage of $73,000 until they are debt-free.