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.

-Trina enjoys managing investments and believes that she could get a higher yield on the proceeds from Antonio's life insurance than the insurance company would pay.Which settlement option should be selected for Antonio's policy in the event of his death?

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.
 
-Trina enjoys managing investments and believes that she could get a higher yield on the proceeds from Antonio's life insurance than the insurance company would pay.Which settlement option should be selected for Antonio's policy in the event of his death?

Quizplus · Accepted Answer

The best choice for Antonio's policy in the event of his death would be the lump sum option. This option would provide Trina with a single payment of the policy's death benefit, which she could then invest and manage for a potentially higher yield. This would give her more control over the investment and the ability to adjust it over time as needed. The other options, such as interest income, income for a specific period, or income for life, may not provide the same level of flexibility and control over the funds.

Antonio and Trina Are a Young Couple with Two Small