Insurance Coverage, Essay Example

Insurance Plan

The process of identifying ones insurance plan needs is a critical, yet sometimes an ignored process. Many of the people would often fail to engage an expert in analyzing their lives and properties, and assessing the risks that are subjected on these items. This is important considering that one’s insurance needs may vary according to the age, country, lifestyle, property owned, and economic (affordability) of paying the premiums. There exist many types of insurance plans including home property, education, property, car, health, mortgage, and life insurance among others. This means in recommending the insurance plan that works well for my client, I will have to conduct a needs assessment based on the profile of my client.

Insurance Plan

My client is John Kelly; He was born in Texas in the year 1986. He finished college a year ago as a pilot and is currently in a pay internship session with Southwest Airline Company as a pilot. Besides being a pilot on internship, Kelly has a family consisting of his wife, and one baby boy. Kelly has a personal like for sport cars and owns a Range Rover Vogue Sport. Kelly bought the vehicle one and half years ago at an estimated cost of 150,000 US dollars. He lives in a rented house, which he has furnished with furniture, electronics, and other valuables valued at 80000 US dollars. Kelly loves driving for long distance trips and partying.

Analyzing the profile of my client Kelly, it is evident that Kelly needs an insurance cover that would cover his life, safety on the road, furniture’s in the house, and the sport car he owns. It may be necessary for Kelly to consider taking on the various insurance plans that would ensure that he could be compensated upon experiencing an unforeseen risk. Indeed, Kelly may be said to have a high number of potential risk due to the high value properties that he owns, as well as, his family that depend on him. His life as a pilot presents a number of risks including the risk to death while flying in the air, and thus he should insure his life. His life as a family man also presents the risk to family suffering by the virtue that he is the breadwinner in his family. In this context, insuring his life would be beneficial to the family as beneficiaries in the event that he loses his life on travels.

It is evident that Kelly to consider a number of options that would help him covers the properties and life against the potential risks identified. In the current day and with the advent of new insurance plans covering many items across the board, Kelly cannot afford to take insurance plans for the sake of his and his family benefit. The advent of many insurance plans is an opportunity that Kelly has to consider to protect risks attached to his property, family, and his own life. His life profile is enough for one to see the critical potential risks that are presented to his life, and family. Kelly may however need to be more careful as he signs the insurance plans he wishes to take. This is by looking at the risks presented by the nature of work he is involved, his status as a family man, and his lifestyle as a traveler. For instance, he must ensure that the life insurance plan he intends to take covers accidental death, and injuries on travel among others.

First, Kelly has invested in schooling as a pilot and has found a paying job though on internship. In addition, he has also invested in his family by having a wife and a child, and so his one life has a high value. It may be important for Kelly to insure his and his family life from the possible dangers that may occur, such as, death. If Kelly was alone, he would have opted for a $100 life insurance policy, but in this case, he has a family, so he may be compelled to take on a family insurance plan. I would recommend that Kelly take a personal and family life insurance plan that will insure his life and that of his wife and kid. In this context, I may recommend a $150 life insurance plan that would comprehensively cover him and the family. This plan will be adequate in helping him to meet the adequate specific needs related to the potential unforeseen risk of death. Importantly, the insurance policy plan that will cover death that may even arise from accidents on the road as a driver, and in the air as he flies the plane should be taken.

In addition, my client may also need to prioritize car insurance. This is by the virtue that Kelly has bought an expensive and luxurious car. Kelly owns a Range Rover Vogue Sport worth $150,000 at the time of purchase. This huge investment must be insured against the risks of accidents and theft. In insuring this car, it may be necessary to register its account on two drivers, his wife, and him. This is by the virtue that he may leave the wife to drive this car when he is out on duty for other functions. Kelly may have to consider insuring this luxury care against the potential risk to accidents and theft. The Range Rover has a good stability due to its tyres and weight so it has minimal chances of rolling, with many fitted airbags minimizing the risk of impact in the event of accidents. However, the car accessories are very expensive and returning the car back to shape may not be an easy option. On this account, he may have to consider taking a $120,000 insurance plan to cater for both risk of accidents and theft. I am certain that this type of policy will fully cover the car against potential accidents and theft, which are common risk to vehicles.

Kelly lives in a rented apartment, which he moved into with the family and furnished the house with furniture and electronics. As at now, he has not taken any mortgage for a house, so he may not find it necessary to take mortgage insurance. However, in the future when he has settled on a mortgage deal, it may be necessary to consider this insurance plan. As at now, Kelly owns a number of properties in the house in form of furniture, electronics, and other electrical appliances in his rented house. Kelly should consider taking a home property insurance that will cater for the potential risks that is presented to these properties, such as, the risk to fire, death and theft. Through taking a home property loan, Kelly may be in a position to minimize the risks presented to these items for the sake of his family, and his personal huge investments on them. In my view, Kelly may consider to take a $60,000 home property insurance plan that would protect the items insured against risks to theft, and fire, which are common risks to home properties.

My client may also apply for General liability insurance for the sake of insuring the general items in his life. A number of reasons make it necessary for Kelly to consider taking on the general liability insurance. The first reason is the nature of his activity as a pilot, and leader in his family, as well as, the huge investments that has gone down the road. I would advise my client to consider this insurance plan, since it caters for a wide array of risks linked to life and property. This insurance plan may be good for Kelly for it will give him the peace of mind over the different properties that he owns. It would allow him and family to use the resources and properties with ease and fear of loss due to unforeseen reasons.

Conclusively, I may say that Kelly nature of work, family, and value of property are key factors in determining the insurance plans. In my view, Kelly should consider taking up car insurance for his Range Rover sport, due to the huge investment that has been used in purchasing the car, and the high potential risks that the car faces on accidents while on the road. Cars moving on the road always fall into high risk to accidents, thus, he should consider taking on a good insurance plan. In registering the plan, the car should be because of two drivers, him and the wife, so that it is covered in the event of any happening by either driver.

In addition, Kelly should also highly consider taking a life insurance due to the potential risks to death that faces his life. He may need to take on life insurance policies that would cover risks of accidents on death. This is by the virtue that his life revolves around travelling on road and in the air. As a pilot professional, and with a hobby of driving for long distances, then insuring his life against these risks may be critical, for no one knows the timing for their own death. Taking on a life insurance, will also be helpful on the family as beneficiaries in the event of unforeseen death.

Finally, my recommendation has also captured the need for Kelly to take on home property insurance that would capture furniture and electronic insurance. Kelly owns a number of valuable items in their home including the furniture and electronic items. Leaving these items uninsured is a risky option for Kelly because they are faced by risks of theft, and fire, which are unforeseen risks. Kelly should not assume this for it might lead to great losses in the event that these risks fall on them. Kelly should take on an insurance plan for the furniture, electronic, and kitchenware stuff under home property insurance, a move that will make easy the burden of unforeseen loss related to these properties.