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Evaluate a Financial Plan

In: Business and Management

Submitted By crogers1221
Words 2144
Pages 9
Evaluate a Financial Plan
FIN/420
December 10, 2012

Evaluate a Financial Plan
Financial planning is part of life and planning early in life makes saving and paying for expenses easier. From the monthly budget to a retirement plan organizing ones money to pay for future needs is important. This Evaluation for a Financial Plan starts with insurance needs, making the most on interest on one’s savings, types of loans, and asset allocation. Each area of the financial planning process needs to be addressed in order to make future goal financial goals.
Personal Insurance Needs
Everyone generally understands that they need at least health insurance, car insurance, and mortgage or renters insurance. Many people, especially when they are younger, forget or decide they do not need life insurance! This is probably the most important insurance to someone with a family because it takes care of loved ones should someone pass away early. There are four main types of life insurance: term, whole, universal, and variable life insurance.
Term life insurance is the most basic and is typically what younger individuals choose to start with because of its low premiums. Term life insurance will not have cash value and will only last for the stated term set forth. This is generally best for people who need insurance for a shorter amount of time until they can afford higher premiums for a different product.
Whole life is the second form of life insurance. The premiums are higher than what term life would be, but over the entire life span can become cheaper than a term policy should someone need to renew the term life later in life. This will also hold a cash value, making it an investment vehicle should someone have a hard time saving money. It can be for the duration of life should someone prefer. This is a good option for someone wanting guaranteed life insurance until they die.…...

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