Question

2 harry is a single father of 12 - year - old tracy who has special needs and cannot fend an independent life. harrys efforts in analyzing his insurance needs and harry mentions the following expenses: - mortgage balance of $190,000 - tracys financial needs ($200,000) - harrys funeral expenses of $25,000 - taxes to be paid upon his death (estimated at $110,000) which of the following needs of harry should be addressed with permanent life insurance? qw96wusvwwnocncvqwppz0hyvibout09 a. tracys financial needs, taxes to be paid upon harrys death, and funeral expenses b. mortgage balance, funeral expenses, and taxes to be paid upon his death c. taxes to be paid upon his death and mortgage balance d. mortgage balance, tracys financial needs, and taxes to be paid upon his death qw96wusvwwnocncvqwppz0hyvibout09

Explanation:

Permanent life insurance is used for long - term financial needs that are ongoing or lasting. Tracy's financial needs (as a dependent with special needs, long - term), the mortgage balance (a long - term debt), and the taxes upon death (a long - term liability related to estate) are long - term. Funeral expenses are a short - term, immediate need (addressed by term insurance or final expense insurance usually). Option a includes funeral expenses (short - term, not ideal for permanent). Option b includes funeral expenses. Option c is incomplete. Option d has mortgage balance (long - term debt), Tracy's financial needs (long - term for dependent), and taxes (long - term estate liability), which are appropriate for permanent life insurance.

Answer:

d. Mortgage balance, Tracy's financial needs, and taxes to be paid upon his death