Term life insurance and an individual universal life policy

Assignment Help Financial Management

Reference no: EM13943666

David and Cheryl Allen are in their mid-30's and have two children, ages 8 and 5. They have combined annual income of $95,000 and own a house in joint tenancy with a market value of $310,000, on which they have a mortgage of $250,000. David has $100,000 in group term life insurance and an individual universal life policy for $150,000. However, the Allens haven't prepared their wills. David plans to do one soon, but they think that Cheryl doesn't need one because the house is jointly owned. As their financial planner, explain why it's important for bith David and Cheryl to draft wills as soon as possible.

Reference no: EM13943666

Questions Cloud

Impact on meat fish their tissue : Smoking process, role,types of smoking, contain of smoke, impact on meat fish their tissue,

Which rule is dominant in the united states : For this week's assignment, you will write a 300-word minimum essay about criminal omission. In your essay, please address the following: Define, compare, and contrast the "Good Samaritan" rule and the American bystander rule. Which rule is dominant ..

Essential prerequisite to increase food production : In order to meet the increasingdemand of food grain in the country, Fertilizer is one of the main inputs to agricultural sector. It is an essential prerequisite to increase food production.

What is component cost of debt or use in wacc calculation : The Nexcell Company sold a $1,000 par value, non callable bond that now has 15 years to maturity and a 5.00% annual coupon that is paid semi annually. The bond currently sells for $920 and the company's tax rate is 40%. What is the component cost of ..

Term life insurance and an individual universal life policy : David and Cheryl Allen are in their mid-30's and have two children, ages 8 and 5. They have combined annual income of $95,000 and own a house in joint tenancy with a market value of $310,000, on which they have a mortgage of $250,000. explain why it'..

What is community policing : What is community policing? How important is citizen involvement in this type of policing? How can citizens help police

Problem regarding different business functions : 1. Companies generally need to use more than one information system to support all their different business functions. These functions are frequently referred to as either front- office information systems or back- office systems.

What is addition to retained earnings : PDQ Corp. has sales of $3,000,000; the firm’s cost of goods sold is $1,425,000; and its total operating expenses are $700,000. The firm’s interest expense is $230,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholde..

The boiler at atmospheric pressure : A boiler is fired using 200 kg /hr of pure saturated hydrocarbon gas ( Cn Hm ) at atmospheric pressure and 20 oc. The dry analysis of the flue gas which leaves the boiler at atmospheric pressure and 300 oc is CO2 =..

User Account

All Pages