You are conducting an assessment of Sandheep and Indira's finances in preparation for their Client Profile. Their
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Question:
You are conducting an assessment of Sandheep and Indira's finances in preparation for their Client Profile. Their family home is worth $350,000 and has an outstanding mortgage of $333,670. They have 2 family cars, one of which has 2 years of payments outstanding for $400/month. They also have an outstanding balance on their credit cards of $8,000, and some outstanding tax liabilities and other obligations of $3,000. What does your assessment of their assets and liabilities tell you?
a) | In the event of loss of income due to disability, Sandheep and Indira do not have liquid net assets to cover the income loss. | |
b) | In the event of a medical emergency, the equity in Sandheep and Indira's home could be used to cover medical and care expenses. | |
c) | In the event of a medical emergency, Sandheep and Indira's family cars could be liquidated to cover medical and care expenses. | |
d) | In the event of loss of income due to disability, Sandheep and Indira have ample liquid net assets to cover the income loss. |
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