The Butterfields Case: An Insurance Planning Case Study

Discussion Points and Questions

1.Briefly summarize the relevant facts of the case relating to insurance planning.

2.If the Butterfields were going to purchase additional life insurance what type of policy, what face value, and what riders would be most appropriate given their age and need?

3.Explain the advantages and disadvantages of having John purchase additional life insurance through his employer.

4.Describe the 80% co-insurance rule and report to the Butterfields how this rule affects their homeowner's coverage.

5.What actions can the Butterfields take to reduce their insurance premiums while maintaining adequate coverage in terms of liability and property coverage?

6.Explain why the Butterfields should consider purchasing an excess liability insurance policy.

7.Describe the purpose of long-term care insurance and indicate if and when the Butterfields should consider purchasing this type of insurance.

8.Report on the advantages and disadvantages associated with the Butterfields' current health insurance policy.