Read the insurance case provided and write a detailed explanation of recommendations for this client. Create your paper in a way that makes the information easy to read and understand for your client.

Note: This paper doesn't have to be a traditional paragraph form APA paper. Clients will not want to read five pages of full paragraphs. Make it look professional and provide reasons for your recommendations.

Wes & Heather Smith

Family Information

Wes and Heather Smith have come to you, a financial planner, for help in developing a plan to accomplish their financial goals due to financial situation changes from pandemic and wanting to purchase a new home now.

John Jones, age 30, an engineer with a corporate engineering firm. Annual salary of $250,000. He provides all health and life insurance through his employer. He has been at his employer 4 years and participates in the 401K plan with $100,000 value. He plans to retire at age 65.

Heather Smith, age 28 is a restaurant manager with annual income of $60,000 and she will continue to work until age 62. Mary does currently participate in her company 401K with a $40,000 balance.

Net worth for the Smiths is $100,000. They have 50% equity in their current home of $65,000.

The Smiths have two children, Lacy age 3 and Trevor age 1. Day care costs are $1500 per month.

Because of the impact from the pandemic on the restaurant industry and they had to use money from savings and emergency fund to meet current financial obligations. They think they have enough equity in current home for down payment on new home they wish to purchase.

Emergency fund is currently $5000. They have savings of $5000.

Financial Goals

Their primary goal is to development an appropriate risk management profile with the change in their lifestyle. They have the following goals:

Purchase a new larger home to take advantage of low interest rates.

Increase emergency fund and savings lost during pandemic.

Pay off mortgage in 10 years.

Save for retirement. No specific plans currently.

Set aside funds for childrens college

External Information

Economic Information

Inflation is expected to increase in the current year to 3.4% and then lower back into the 2.5% range in the following year.

Bank Rates

Mortgage rates of 4.2% on 30 -year mortgage

Car loans both have 5% interest rates

Insurance Information

Life Insurance

	Policy 1	Policy 2
Insured	Wes	Heather
Policy Through	Employer	Employer
Face Amount	$500,000	$100,000
Type	Term (group)	Term(group)
Annual premium	$200 paid by employer	$100 paid by employer
Beneficiary	Heather	Wes
Contingent beneficiaries	Tims parents for children	Tims parents for children
Owner	Wes	Heather
Settlement Option	None	None

Health Insurance

Health insurance is provided by Wess employer. The monthly premium is $800. The policy carries a $1000 per individual or $2500 family deductible and is an 80/20 plan. The maximum out of pocket is $3500.00. The plan includes dental, vision, and prescription coverage.

Disability Insurance

Wes and Heather both have disability insurance from their employers. None will continue after retirement.

Long Term Care Insurance

Wes and Heather currently do not have any long- term care insurance.

Homeowners Insurance

The Smiths have a HO-3 policy (replacement value and open perils endorsement) with a $500 deductible, a dwelling value of $125,000, an 80% coinsurance requirement, and current annual premium of $725. Liability coverage is $300,000 per occurrence. The home is worth $130,000 and the land value is $30,000. Total value $205,000. They want to purchase a new home now and they are looking at the $300,000 to $350,000 price range.

Automobile Insurance

Both cars are covered on a Personal Automobile Policy

Liability $100/300/100

Medical $5000

Actual cash value policy

Uninsured and Underinsured motorists of 100/300

Collision deductible of $1000

Comprehensive deductible of $500

Total Premium for year is $2000.00