The Sampsons have one remaining insurance need: life insurance. They have decided to purchase term life insurance. They want a life insurance policy that will provide for the family in the event of Dave’s death because he is the major breadwinner. The Sampsons do not know how much insurance to purchase, but their goal is to have enough money for general expenses over the next 15 years. Recall that Dave’s salary after taxes is about $40,000. He wants to ensure that the family would have insurance benefits that could provide $40,000 for the next 15 years. By the end of this period, the children would have completed college. Dave also wants to add an additional $330,000 of insurance coverage to provide support for Sharon through her retirement years because they have not saved much money for retirement. Go to the worksheets at the end of this chapter to continue this case.

The Sampsons —A Continuing Case Dave and Sharon want to make sure that their family is properly cared for in the event of their death. They recently purchased term life insurance and want to make sure that the funds are allocated to best serve their children in the long run. Specifically, they have set the following goals. First, they want to make sure that a portion of the insurance proceeds is set aside for the children’s education. Second, they want to make sure that the insurance proceeds are distributed evenly over several years so that the children do not spend the money too quickly.

1, Advise the Sampson’s about how they can plan their estate to achieve their financial goals.

2, What important considerations are the Sampsons overlooking in their estate planning goals?

3, Dave recently met with an estate planner who offered to create an elaborate estate plan without asking Dave specific questions. What should Dave have done before meeting with the estate planner?