HOME AND AUTOMOBILE INSURANCE

Jamie Lee and Ross have had several milestones in the past year. They are newlyweds, recently purchased their first home, and now have twins on the way!

Jamie Lee and Ross have to seriously consider their insurance needs.Since they have family, a home, and, now, babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.

Current Financial Situation:

Assets (Jamie Lee and Ross combined):

• Checking account, $4,300

• Savings account, $22,200

• Emergency fund savings account, $20,500

• IRA balance, $26,000

• Cars, $10,000 (Jamie Lee) and $18,000 (Ross)

Liabilities (Jamie Lee and Ross combined):

• Student loan balance, $0

• Credit card balance, $2,000

• Car loans, $6,000

Income:

• Jamie Lee, $50,000 gross income ($37,500 net income after taxes)

• Ross, $75,000 gross income ($64,000 net income after taxes)

Monthly Expenses (Jamie Lee and Ross combined):

• Mortgage, $1,252

• Property taxes and insurance, $500

• Utilities, $195

• Food, $400

• Gas/Maintenance, $275

• Credit card payment, $250

• Car loan payment, $289

• Entertainment, $300

Questions

1. Based on their current life status, what are some of the goals Jamie Lee and Ross should set to achieve when developing their insurance plan?

2. What four questions should Jamie Lee and Ross ask themselves as they develop the risk management plan?

3. Once Jamie Lee and Ross put their insurance plan into action, what should they do to maintain their plan?

4. Jamie and Ross decided to conduct a checkup on their homeowner’s insurance policy. They noticed that they had omitted covering Jamie Lee’s diamond wedding band set from their policy. What if it got lost or stolen? It was a major purchase and, besides the emotional value, the cost to replace the diamond jewelry would be very high. What type of policy should Jamie Lee and Ross consider to cover the diamond wedding rings?

5. Mr. Ferrell, Jamie Lee and Ross’s insurance agent, suggested a flood insurance policy in addition to their regular homeowner’s policy. Jamie Lee and Ross looked quizzically at the agent, as they do not live within two miles of a body of water. What is the basis for Mr. Ferrell’s claim for the necessity of the flood policy?

6. Using “Your Personal Financial Plan” sheet 27, create a home inventory for Jamie Lee and Ross. Consider items of value that may be located in each of the rooms of the house and determine a dollar amount for each item. What is the total cost of the items?

7. Considering the value of Jamie Lee and Ross’s automobiles, what type of automobile insurance coverage would you suggest for them?

8. What financial strategy would you suggest to Jamie Lee and Ross to enable them to save money on their insurance premiums?

Sample Solution

what’s more, evaluate what bliss and prosperity mean for billions of individuals who share their background on line. Various examinations have taken a gander at the various sorts of bliss (just as pity) communicated via web-based networking media outlets, for example, Facebook, Twitter, and Tumblr.

From a mental perspective, one potential meaning of joy is “fulfillment with one’s life” (cf. Haybron, 2003). He especially accentuates that “life fulfillment” is a longitudinal idea that covers an all-encompassing timeframe. The Stanford Encyclopedia of Philosophy recognizes two faculties of: “A perspective” and “An actual existence that works out positively for the individual driving it”. These definitions identify with the manner by which individuals express their background via web-based networking media.

How about we consider how individuals these days are destined to share their satisfaction or scarcity in that department via web-based networking media. Nearly by definition, what is shared online are quick snapshots of bliss, and not articulations of a lifetime. Some regular models address the vaporous idea of such minutes, e.g., “I’m frightened to be upbeat since I realize it won’t keep going” posted on Tumblr.

An ongoing article on the declaration of the quest for joy on Twitter by Yang and Srinivasan (Yang and Srinivasan, 2016) researches the degree of fulfillment with life by the clients of Twitter over an ongoing two-year time span. The creators dissect in excess of 3 Billion tweets and characterize them dependent on the kind of client: fulfilled or disappointed with their life (S class and D class, individually). They refer to an investigation by Lee et al (2013), in the suitably named Journal of Happiness Studies, in which bliss is compared with abstract prosperity (SWB) and is estimated as a blend of three parts: 1) the nearness of positive feelings, 2) the nonattendance of negative feelings, and 3) life fulfillment.

The main point that Aristotle makes is that a glad life must be resolved after death — when the entire life can be thought of, not simply the cheerful minutes. The models that Yang and Srinivasan notice allude both to immediate decisions of joy and furthermore to life fulfillment: “‘I making the most of my lunch’ and ‘I loathe this exhausting film’ reflect positive and negative influence individually while ‘I’ve accomplished all I wish for throughout everyday life’ is about existence fulfillment.” (Yang and Srinivasan, 2016). In their examination, they recognize some intriguing patterns, for example, the way that clients who express disappointment (“D class”) with their life will in general utilize more action words in the current state, progressively close to home pronouns, particularly first individual solitary structures. Then again, clients who express fulfillment with their life (“S class”) will in general utilize less intensifiers in their posts.

As one could expect, words identified with death (e.g., “cover”, “pine box”, “murder”) are measurably bound to show up in the postings by D class clients. Then again, words identified with religion (e.g., “special stepped area”, “church”) show up more much of the time in posts by S class clients. It is intriguing to see that words in a third classification, cash, for example, “money”, seem significantly more as often as possible in posts by S class clients. Obviously, cash makes probably a few people glad, rather than Aristotle’s perception that “[t]he life of cash making is one embraced under impulse, and riches is clearly not the great we are looking for; for it is just helpful and for something different.” His conviction that “eudaimonia” is important in detachment is right and upheld by this exploration. Then again, a portion of the segments of satisfaction such a

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