Profile of Insurance Needs, Essay Example

A person’s insurance needs vary according to his/her social status; age; gender, country and ethnicity. A through insurance needs assessment must embrace every aspect of the insurance coverage process. There are various types of insurance plans inclusive of health, property, car, furniture, life and mortgage. For example, a health insurance needs profile would encompass an assessment of the person’s present health status, age and ability to pay a specific amount of premium. Therefore this needs assessment must encompass asking my client the type of coverage he presently has. In projecting the future it is imperative to gather data pertaining to whether he has been diagnosed with any disease. This is important because some polices/plans do not cover preconditions. During the interview this criterion was communicated and clarified with the client.

In the case of physical property insurance assessment the type of property to be insured along with its present market value has to be ascertained. Further, a property insurance profile is often contained in the Property Causality 360 regulations. They embody fire as well as liability such as if someone is injured on the property. It can also cover theft and damage by floods or any other natural disaster. My client had to be evaluated based on these criteria during the insurance planning process in developing a comprehensive needs assessment profile.

Another type of coverage for which my client might be eligible is car or auto insurance. Ultimately, the kind of coverage depends to a great extent on age of the driver, type of car, the year it was manufactured and the number of persons registered to drive the vehicle. Many auto insurance companies carry different premiums for first time teenage drivers while more matured drivers have the added advantage of lower premium rates. There are numerous companies offering auto insurance since it is mandatory. As such, the market is very competitive. This criterion for obtaining an auto insurance policy was communicated to my client during our interview as he asked for clarifications regarding the best kinds to purchase.

Furniture, life and mortgage insurance coverage are essential if the individual has expensive furniture. During a fire if ther is insurance coverage pertaining to building then no compensation will be awarded to furniture destroyed in a fire. This is not covered in a property insurance plan. It was explained to my client that separate coverage was necessary in case he wanted ton protect personal possession in the form of furniture. Life insurance coverage is just as important since no one anticipates when death will occur,. There are many types of life insurance plans. Some do no pay for death by accident.

Therefore, this was an important concern, which was clarified in the interview. Also, some companies do not cover death from certain diseases. As such, it is important for the agent to explain these differences to ensure that the client receives the most appropriate coverage. Some mortgage companies place an additional coverage on the mortgage agreement protecting the client’s property in case of sudden death. This coverage is expected to protect property owners from losing their property if death occurs. This type of coverage pays of for the property. These were subjects embodying the interview discussions. Below is a summary of the needs assessment.

My client’s name is Shannan Zhang and was born in China on May 30th, 1992. Currently she is attending a University in the United States of America as an international student majoring in film at Purdue University. Also she is junior expecting to graduate next fall.  Besides, being a student Shannan Zhang likes traveling and flying quite a lot spending much time on air. Her immediate property consists of a BMW six series (650i).  This car was purchased approximately one year ago at an estimated cost of 100,000 dollars. Her family in the U.S consists of an eight month old puppy and her boyfriend whom she loves dearly. Her hobbies include shopping and tasting delicious foods.

Based on this needs assessment Shannan Zhang insurance profile would consist of a life insurance since she likes flying/travelling, which increases her accidental death risk. A $100, 000 life insurance policy may be adequate to meet her specific needs. In addition she owns a car and drives. This is another prequalifying consideration for accidental death insurance coverage, Next priority is care insurance because she owns a luxury vehicle and would allow her boyfriend to use it sometimes. Account must be given to at least two drivers, which pushes the cost up to about $1,000 per year.

Shannan Zhang lives in the dormitory of her university and did not consider household furniture insurance coverage as being important at this point in time. Mortgage and property insurance neither were necessary since she does not own any property neither has a mortgage. However, these were future consideration within her need assessment insurance coverage profile because next year she plans on graduating taking up a career in filming either in United States of America or China