Risk Mgt HW Ch. 11-12

Risk Mgt HW Ch. 11-12 - Ch. 11 & 12 AQ's Ch. 11 3. A)...

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Ch. 11 3. A) Based on the needs approach, Kelly would need to purchase an additional $583,000 of life  insurance to meet her financial goals.      B) The added monthly social security payments would lower Kelly’s need to $419,800. 4.  Janet should purchase $300,000 of additional life insurance in order to meet her goals. 6.  Todd should consider purchasing a variable universal life insurance policy. It allows the  policyowner to invest the premiums in a wide variety of investments—into one or more  separate accounts, similar to mutual fund operations. This type of policy has no minimum  interest rate or cash value guarantees, and investment earnings are not currently taxable as  income to the policyowner. Also, this policy periodically deducts mortality and expense  charges, which is another characteristic that Todd was looking for. 8. A) The decreasing term insurance could meet Richard’s financial goals to pay off the 
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This note was uploaded on 04/08/2008 for the course FIN 381 taught by Professor Knowles during the Spring '08 term at Bryant.

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Risk Mgt HW Ch. 11-12 - Ch. 11 & 12 AQ's Ch. 11 3. A)...

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