Antonio and Trina are a young couple with two small children, Jason (age four) and Claudia (age two). Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now Antonio and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Antonio and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.

-Given Antonio and Trina's need for life insurance and their tight budget,which type of life insurance should the Tysons purchase?

Question

Antonio and Trina are a young couple with two small children, Jason (age four) and Claudia (age two). Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now Antonio and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Antonio and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.
 
-Given Antonio and Trina's need for life insurance and their tight budget,which type of life insurance should the Tysons purchase?

Quizplus · Accepted Answer

Given their tight budget and the need for life insurance, the most affordable option is term life insurance. Of the given options, guaranteed renewable term provides the most value for their money. This type of term life insurance guarantees that the policy can be renewed without the need for a medical exam if they choose to extend coverage beyond the initial term. This allows them to lock in a set premium for the duration of the term, providing a predictable expense that they can budget for. Additionally, they can increase their coverage amount as their budget allows in the future. Whole life and variable-universal life are more expensive and may not be necessary for their current needs. Limited-pay term may also provide the necessary coverage, but it has a higher premium than guaranteed renewable term.

Antonio and Trina Are a Young Couple with Two Small