Life Insurance Case Study: 20-Something Texas Family of 3

Client: John and Sarah*

Ages: John - 28, Sarah - 26

Occupation: John - Engineer, Sarah - Teacher

Annual Income: $100,000

Family: Married with one child, age 2

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Situation: John and Sarah Smith are a young, growing family with a 2-year-old child. They want to ensure that their child is financially secure in the event of either of their deaths. They have been considering purchasing life insurance, but are not sure what type of policy is best for their situation.

Objective: To provide John and Sarah with the coverage they need to protect their child's financial future in the event of either of their deaths.

Analysis: Based on John and Sarah's current situation, a term life insurance policy is the best option for them. A term life insurance policy provides coverage for a set period of time, typically 10-30 years, and pays a death benefit to the beneficiaries if the policyholder dies during the term of the policy.

Recommendation: John and Sarah should purchase two term life insurance policies, one for each of them, with a coverage amount of $500,000 each. They should select a 20-year term, which will provide coverage for their child until they reach adulthood. This will give them peace of mind, knowing that their child will have financial security in the event of either of their deaths.

Conclusion: By purchasing term life insurance policies, John and Sarah will be able to protect their child's financial future in the event of either of their deaths. The policies will provide coverage for 20 years, giving them peace of mind and ensuring that their child will have financial security, even after they are gone.

Get a life insurance estimate from a licensed Texas agent.

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*Case study designed for educational purposes only.