Case Analysis

Case Analysis

Introduction

Specific insurance product and amount that will meet their estate objectives

Frank and Deborah smith are well-equipped American citizens that have just completed 55 years of their life. After reviewing their financial status, it was observed that both of them own their separate residence that has an approximate market value of $300,000, which is expected to increase at a rate of 8 percent (Kapoor et al, 2011). In addition to this, they have invested in diversified fixed assets, bonds, and others, however, they want to secure the live of their children's, and want to use all these assets without being worried of paying of taxes and other fees.

Thus, after analyzing their financial information and conduction detail discussion with Frank and Deborah, we have advised them to purchase our specialized family insurance policies as it will provide them long term benefits, and will be fruitful in achieving their estate objectives, and they must have around $1000000 in there bank account in case of any unwanted circumstances. However, our specialized family insurance policy or product comprises of following innovative benefits.

Our family income policy comprises of individual entire life, and lower coverage rates to offer protection of remaining family members during their whole life. In current scenario under this policy, if any one of insured person dies, during the first tenure of policy which is normally of (30 years), in that case the company will provide the monthly income of that individual to his family throughout the insurance period. In addition to this, under whole life policy of our specialized family policy, Frank and Deborah can buy the insurance policy of fifteen family members from the time of its birth until 18 years of age.

Moreover, Frank and Deborah after the purchase of this policy would be able to accomplish all the estate objectives. For instance, they have formulated a cover for their children, after the completion of this tenure, they can reinvest the received amount in other innovative resources as if they can repurchase our special policies, they can purchase lifetime policy for their entire family and others.

Amount of coverage needed to pay of tax liability and other fees after the death of spouse

Death of a family member is the hardest thing for any individual to digest; however, in this turmoil situation it is important to take certain important decision at right, in order to protect the family from future legal tensions and problems. In this case, it is a well-known fact that both frank and Deborah are well-established people, that are earning high amount of income, and as a result are paying huge amount of taxes. In addition to these both of them has taken various loans, and have invested in diversified assets, thus, assuming that Deborah died and left an amount of 3000000 for frank and her family members to pay off (Elton et al, 2009).

In this, situation frank will have to arrange an around $4500000 extra to pay off all the tax liabilities, and probate fees on timely ...