Peter is considering his insurance needs once he opens his own business. He currently has no debt, is not married, and has no children. His current employer provides health insurance, the equivalent of one year’s salary for life insurance, and 70 percent of his salary for disability insurance after 90 days. Peter will need to borrow $400,000 to open his restaurant. His parents purchased a $40,000 whole life insurance policy for him when he was born.
What type of personal insurance does Peter need and how much would you recommend he purchase? Use the Internet to get cost estimates for Peter. Give the supporting reasons for your recommendation.
A summary of the housemates’ goals can be found in the first Continuing Case problem in Chapter 1.
Continuing Case problem in Chapter 1
Throughout the text, the continuing case scenario at the end of each chapter will involve situations encountered by the housemates of 906 East College Street. All of the residents are either current students or recent graduates. Leigh, Blake, and Nicole are siblings. Their parents bought the home, which is close to campus, as an investment when Leigh started at the university her freshman year. The following profiles describe each of the housemates and their intermediate goals.
1. For each housemate, identify a SMART short-term goal that supports his or her success in achieving an intermediate goal.