Home and Automobile Insurance Newlyweds Jamie Lee and Ross have had several milestones in the past year. They are newlyweds, recently purchased their first home and now have twins on the way! Jamie...



Home and Automobile Insurance




Newlyweds Jamie Lee and Ross have had several milestones in the past year.  They are newlyweds, recently purchased their first home and now have twins on the way!



Jamie Lee and Ross have to seriously consider their insurance needs.  A family, a home and now babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.




Current Financial Situation:



Assets
(Jamie Lee and Ross combined):


Checking account: $6,300


Savings Account: $23,200


Emergency Fund savings account: $30,500


IRA balance: $36,000


Car: $10,000 (Jamie Lee) and $18,000 (Ross)




Liabilities
(Jamie Lee and Ross combined):


Student loan balance: $0


Credit Card Balance: $4,000


Car Loans: $8,000



Income:


Jamie Lee: $50,000 gross income ($37,500 net income after taxes)


Ross: $75,000 gross income ($64,000 net income after taxes)



Monthly Expenses

(combined):


Mortgage: $1,252


Property Taxes and Insurance: $500


Utilities: $195


Food: $600


Gas/Maintenance: $375


Credit Card Payment: $250


Car Loan Payment: $389


Entertainment: $300



Original Purchase Price of Home
:
$293,000



  1. Jamie and Ross decided to conduct a check-up on their homeowner’s insurance policy. They noticed that they had omitted covering Jamie Lee’s diamond wedding band set from their policy. What if it got lost or stolen?  It was a major purchase and beside the emotional value, the cost to replace the diamond jewelry would be very high. What should they do?



Jun 04, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here