Helping an Individual to Find the Right Life Insurance Policy – Data Report

Comparative Study of Life Insurance Policies

Project Data Report
Prepared for Billy Ma
Prepared by
Student’s name
Date
Introduction
Topic
This paper researches on the different life insurance policies that are fit for Billy Ma as it will be useful in the provision of financial protection for his family factoring in many risks inherent.
Purpose of the research project
The purpose of this research study is to help to chose the better life insurance policy for the client. Following the increase of responsibilities and financial needs cumulatively, a need for protection of future finances is necessary. This research will evaluate different life insurance policies factoring in various criteria that best fits this situation. I have presented different options and evaluative criteria that will help you in understanding and making the right decision regarding the insurance policy. This paper, therefore, identifies the condition of Billy Ma’s level of income, termination of Tracey’s job and newborn baby. Life insurance policy will help in securing the financial security of the family.
Minimum specifications
Following our discussions, I have analyzed the situation in this case with requirements and managed to come up with minimum specifications that the [policy should meet as indicated below.
• Should be affordable
• Premiums to be paid from Billy’s salary
• Proceeds should meet the family’s financial needs
• The insuring company will meet the credits of reliability
• Reasonable coverage as per Bill’s requirements
• The policy will have a cash value at its maturity
• The policy will guarantee the family’s survival for a period not less than six months
Options
This paper considers four primary policies that best suits the client.

The options have been thoroughly researched with the right information and are stipulated below. These alternatives considered are derived from updated information on the sources.
The first option is a 20-year term life insurance policy. This policy requires the client to pay premiums on a monthly basis for twenty years. The proceeds will be paid to the client after the end of the twenty years period or to the beneficiaries of the .” upon the occurrence of death within the period.
The second option is a thirty-year term life insurance policy whose requirements need the client to pay premiums on monthly terms for the period of thirty years. The policy covers the client for thirty years, and the proceeds will be paid at maturity or expiration of the policy.The proceeds too will be paid in between the period to expiration upon the occurrence of death.
Whole life policy will be the third alternative, and it covers the entire period of the client’s life. The client will be expected to pay premiums on a monthly basis till the expiration of the policy. The policy matures upon the occurrence of death, and the proceeds will be paid to the beneficiaries. The whole life policy is a contract between the parties in which the premiums paid keeps the agreement in force. The insurer will pay the death benefit incase the client passes on.
The last alternative is a custom whole life policy which requires the client to decide the timing of making premium payments. The premiums are paid for the period in which the clients deems fit. Other features in this option will include the option to withdraw the accumulated cash value. The policy too has a supplemental retirement income at its maturity.
As stated in the proposal and the progress report, the research will stick to these options in selecting the best policy for Billy’s family. Therefore, the options indicated above have not changed and will be used specifically for purposes of this research. The alternatives give a wider scope and range of study, with detailed information, and I consider it necessary as the right judgment would arrive.
Evaluative criteria
In choosing the best life insurance policy for this particular case, I will consider the following criteria that factor in the current life situation, the present flow of finances both inflow and outflow, the age of the client, beneficiaries and life expectations as a whole. Below are the criteria to be used for this research for evaluation, presented in a bulleted list.
• Reliability
• Affordability
• Coverage
• Cash or no cash value
Purpose of the Data Report
The data report is aimed at presenting all the data gathered and used in this research. The report is meant to highlight relied upon data for each option and the evaluative criteria. The information is crucial as it helps gain deeper insights for comparisons and the validity of each option. I have presented the information in an efficient way that guides you in comparing the four options against the criteria. It would be easy for you in determining the best option that best meets your minimum specifications as you will have all the necessary data for this task. The report captures all the criteria in reliability, coverage, affordability, and cash value. As this report contains all the options and criteria indicated in this research study, you will be able to make the right decision regarding the choice of life insurance policy. The best insurance policy will be in a position to provide financial protection for your family.
Contents of the Data Report
This report is divided into three main parts that include the introduction, the research data, and the bibliography section. The introduction section contains general information concerning the research topic. As you will see, I have clearly indicated the topic and purpose of the research clearly. I have also included subsections that cover on the minimum specifications for the policy, the criteria and also the options to be compared. In the research data section, I have organized the information regarding options discussed here and accompanied by data on evaluative criteria. The information presented herein is sufficient and factual that is meant to support the options and criteria. As you will see, there are footnotes and endnotes too that are the to give a proof of credibility of the information presented in this data report. Each work relied upon has to be cited and therefore this data report includes a bibliography section at the end. The sources are presented using MLA format for this documentation.
RESEARCH DATA
20-Year Term Insurance Policy
Reliability
On the case of reliability, we consider different companies that offer 20-year term insurance policy in a reliable way. The twenty-year term insurance policy is offered by several international and reliable companies. I have narrowed down my analysis to two regarding that are discussed below together with relevant data to access on their reliability.
MetLife insurance company
MetLife insurance company is a global insurance that leads in the provision of short-term life insurance policies. The company holds a bigger market share globally across the United States, European countries, Asia and Africa. The intensive investment of subsidiaries all over the world has earned a greater number of clients. MetLife has been in operation for over hundred years offering life insurance policies for diverse clients. It is recognized as a global brand with its services being appreciated by clients and international bodies. The company has been effectively executing client’s claim that holds a policy with them. The many subsidiaries across the country provide an avenue for consultation and access of information.
According to rating companies in the United States, the company is among the leading players regarding reliability and credit ratings. The following table indicates this.
A.M Best company Fitch ratings Moody’s Investors
American life insurance company A+ Not rated A1
1stMetLife insurance company A+ AA+ Aa
MetLife insurance company USA A+ AA-2 A+
MetLife insurance KK AA- Not rated Not rated
Key
A+
AA
AA-
AA-2
A1
Aa Superior
superior
excellent
very strong
upper medium
high quality
Prudential insurance company
The prudential financial has been in operation for the last one hundred and forty years are giving its customers sufficient satisfaction. The company has helped thousands of individuals in securing financial security and stability. From the reviews of the customers, the company is known for delivering the promises made in the agreement. This makes prudential a trusted brand with extremely receiving world’s admiration and trust. The company has opened subsidiaries in all the continents of the world establishing a strong financial base. The broad diversification of the assets secures it from any form of threat such as liquidation. The company provides professional advice and is widely involved in helping individuals chose a better policy. .” what drives the so-called “the strength of prudential.”
Affordability
The table below gives a breakdown of financial flows on the monthly basis. It the is divided regarding inflows and outflows including identification of the specific item. This information relies on our earlier discussion and interviews held on a start of this project. I have also considered the financial reports, bank statements, and credit card report.
Monthly income and expenditure spreadsheet
Inflows Amount in $ Outflows Amount of $
1. Salary 80,000 debt repayment 4,000
2. Business Income 45,000 Housing 800
3. Dividends 12,000 Utilities 900
4. Other Investment Income 9,000 Groceries 1,000
5. Other income 5,000 Living 1,000
6. Transportation 890
7. Healthcare 500
8. Personal 600
9. Entertainment 200
10. Business expenses 900
Other expenses 1200
Totals The table below shows twenty-year term policy with policy terms. I have broken down the policy options regarding amount the insured and also calculating monthly payments.
Twenty-year term policy
Amount insured Period Amount of premiums paid
1 million 20 years 3,000
2 million 20 years 7,000
3 million 20 years 10,000
4 million 20 years 15,000
5 million 20 years 22,000
7 million 20 years 35,000
The above terms have been derived from the company’s database and adjusted to fit the market prices. Also, the data reflects the actual figures paid for this type of policy.
Coverage
This policy covers the client for twenty years. I have noted that the client is forty years old, and the wife is 28 years old. The policy will cover the client up to the age of sixty years. By the end of twenty years, Tracey will be forty-eight years old while their son will be twenty years old. The client is of the male gender. The gender is crucial as it is a factor in determining the life span of individuals. Statistics indicate that the female gender has a long life span compared to the male gender. Insights into the client’s medical examinations show that there are no sensitive medical complications that ought to be factored in this part for evaluation. The death benefit and premiums paid are indicated in the above table under affordability section.
Cash or no cash value
The twenty-year term policy does not accumulate cash value as it is meant to protect the family in cases of death of the breadwinner. This policy will only provide security for the period under the agreement. The proceeds on the occurrence of the death within the twenty years will be paid to the beneficiaries and will be used to cater for the family’s survival meeting basic needs such as housing and school fees.
30-Year Term Policy
Reliability
The following companies offer thirty-year term policy. My analysis has narrowed down to these companies to access their reliability.
Prudential insurance company
As indicated above, the prudential financial has been in operation for the last one hundred and forty years are giving its customers sufficient satisfaction. The company is well known for the provision of term life insurances. The company has helped thousands of individuals in securing financial security and stability. From the reviews of the customers, the company is known for delivering the promises made in the agreement.
This makes prudential a trusted brand with extremely receiving world’s admiration and trust. The company has opened subsidiaries in all the continents of the world establishing a strong financial base. The broad diversification of the assets secures it from any form of threat such as liquidation. The company provides professional advice and is widely involved in helping individuals chose a better policy. This is what drives the so-called “the strength of prudential”.
MetLife insurance company
MetLife insurance company is a global insurance that leads in the provision of term life insurance policies. The company holds a bigger market share globally across the United States, European countries, Asia and Africa. The intensive investment of subsidiaries all over the world has earned a greater number of clients. MetLife has been in operation for over hundred years offering life insurance policies for diverse clients. It is recognized as a global brand with its services being appreciated by clients and international bodies. The company has been effectively executing client’s claim that holds a policy with them. The many subsidiaries across the country provide an avenue for consultation and access of information.
According to rating companies in the United States, the company is among the leading players regarding reliability and credit ratings.
Affordability
The table below gives a breakdown of financial flows on a monthly basis. It is divided regarding inflows and outflows including identification of the specific item. The miscellaneous expenses have been grouped together. This information relies on our earlier discussion and interviews held at the start of this project. I have also considered the financial reports, bank statements, and credit card report.
Monthly income and expenditure spreadsheet
Inflows Amount in $ Outflows Amount in $
1. Salary 80,000 debt repayment 4,000
2. Business income 45,000 Housing 800
3. Dividends 12,000 Utilities 900
4. Other Investment Income 9,000 Groceries 1,000
5. Other income 5,000 Living 1,000
6. Transportation 890
7. Healthcare 500
8. Personal 600
9. Entertainment 200
10. Business expenses 900
Other expenses 1200
Totals The table below shows twenty-year term policy with policy terms. I have broken down the policy options regarding the amount the insured and also calculating monthly payments.
Thirty – year term policy Amount insured Period Amount of premiums paid
7 million 30 years 500
9 million 30 years 800
12 million 30 years 1200
15 million 30 years 3000
20 million 30 years 4000
30 million 30 years 4500
The above terms have been derived from the company’s database and adjusted to fit the market prices. Also, the data reflects the actual figures paid for this type of policy.
Coverage
As the name suggests, the policy will cover the client for thirty years. You provided me with your information indicating that you are forty years old while your wife Tracey is twenty-eight years. The expiration of this policy shows that you will be seventy years old while your Tracey will be fifty-eight years old. Your son will be thirty years old.
Also, the personal information indicates male gender with both male and female dependents. Insights into the client’s medical examinations show that there are no sensitive medical complications that ought to be factored in this part for evaluation. The above table under affordability indicates the death benefit to be paid as well as the expected monthly premiums.
Cash or no cash value
The structure of this policy does not accumulate cash value as its primary goal is to protect the family financial status within the period insured. The proceeds on the occurrence of the death within the thirty years will be paid to the beneficiaries and will be used to cater for the family’s survival meeting basic needs such as housing and education purposes. The insurer will only pay the death benefit.
3. Whole life policy
Reliability
As noted earlier, whole life policy has to be covered by the company that is strong grounds regarding reliability. Below information represents companies that could be used for this purpose concerning the business’s history and background. The report presents insights based on ratings, reviews, financial stability, and efficiency in execution, reputation, and access to information. The information also rests on the provision of the service regarding operation backgrounds and competitive ability in the field.
The data is based on A.M best data ad presents the best life insurance companies with top ratings on whole life policy provision.
Insurance company Percentage market share Superior rating Policies offered Special features
1. Northwestern Mutual 8.46% market share AA+ superior rating Whole life
Universal life
Variable life A hybrid term
Whole life product
2. New York life Insurance 5.74 % market share A++ Superior rating Term life
Whole life
Universal life Corporate sponsored life insurance
3. Met life-metropolitan life and affiliated Cos 5.26% market share A+ superior rating Term life
Whole life
Universal life Acceptance of whole life policy is guaranteed
4. Lincoln Financial group 4.96% market share A+ superior rating Term life
Whole life
Indexed Universal life
Variable universal life 5. John Hancock Financial 4.16% market share A+ superior rating Term life
Whole life
Indexed Universal life
Variable universal life Discounts offered to customers leading a descent lifestyle such as regular exercises and health screening
6. Prudential Financial 3.91% market share A+ superior rating Term life
Whole life
Survivorship life
Universal life 7. Mass Mutual 3.82% market share A++ Superior rating Term life
Whole life
Universal life
Variable universal life Acceptance of whole lofe policy is guaranteed
8. State Farm Life 3.6% market share A++ Superior rating Term life
Whole lofe
Universal life Life insurance customer satisfaction in 2015
9. Transamerica 3.57% market share A+ superior rating Term life
Whole lofe
Universal life
Variable universal life 10. American International Group (AIG) 2.87% market share A superior rating Term life
Whole life
Universal life
Variable lofe
Indexed universal life 11. Guardian Life 2.72% market share A++ Superior rating Term life
Whole life
Universal life
Variable universal life 12. Pacific life 2.65% market share A+ superior rating Term life
Universal life
Indexed universal life
Variable universal life 13. Axa 2.56% market share A+ superior rating Term life
Whole life
Universal life
Indexed universal life
Variable universal life 14. Protective life 2.07% market share A+ superior rating Term life
Universal life
Variable universal life
Survivorship life Affordability
These criteria will also use data presented in the previous examples in evaluating the affordability of this policy. We first consider your expenditure and income items before proceeding to present data on the particular expenses in this form of policy.
The table below gives a breakdown of financial flows on a monthly basis. It .” regarding inflows and outflows including identification of the specific item. The miscellaneous expenses have been grouped together. This information relies on our earlier discussion and interviews held at the start of this project. I have also considered the financial reports, bank statements, and credit card report.
Monthly income and expenditure spreadsheet
Inflows Amount in $ Outflows Amount in $
1. Salary 80,000 debt repayment 4,000
2. Business income 45,000 Housing 800
3. Dividends 12,000 Utilities 900
4. Other Investment Income 9,000 Groceries 1,000
5. Other income 5,000 Living 1,000
6. Transportation 890
7. Healthcare 500
8. Personal 600
9. Entertainment 200
10. Business expenses 900
Other expenses 1200
Totals Considering the top companies indicated under reliability section, I have analyzed the whole life policy regarding premium payment. The information presented represents the market prices that are adopted by the companies at 0.1% deviations.
No Death benefit Monthly premiums paid Annual payments
1,000,000 760 9120
4,000,000 800 9600
8,000,000 1100 13200
15,000,000 1500 18000
30,000,000 2500 30,000
35,000,000 3500 42,000
Coverage
The whole life policy is a cover that is designed to cover the client for the rest of his life. The policy is kept in force through payment of premiums. As long as the client doesn’t terminate the contract through taking the surrender value, the policy will also remain in force until when the client dies. This policy as the name suggests will be in force for the rest of client’s time. It will cover you from the age of forty years till death holding that all the requirements will be followed. As indicated earlier, the medical report indicates that there are no major complications that ought to be highlighted in this research study in highlighting coverage. I noted that you have been leading a healthy lifestyle. This is drawn from the regular exercises and medical examinations. The premiums to be paid in both monthly and annually have been indicated in the above table under affordability section. It also indicates the death benefit in different options categorically stating the rate of premiums to be paid.
Cash or no cash value
This policy is designed to provide financial protection that has a savings feature. The new financial services differentiate the cash value and the face value that are offered in whole life policy. According to its website, the whole life policy pays cash value “and it is the amount that accumulates over a period on the policy while the face value is the policy amount that is paid as death benefit. The insurance law determines the minimum amount, and it shows the accumulation of premiums after the allowances and expenses are paid.As shown in the table below, the face value will be high in the first years and low as the number of year’s increases. The face value will also be paid in times of surrender instead of the face value. The policy allows the client to withdraw the cash value in the the period before expiration. In this policy, there are availabilities of loans offered by the company to the client against the cash value accumulated. The loans are provided at lower interest rates than the normal loans offered by financial institutions. As noted, the cash values accumulated decreases over the period due to increased risk of death.
Death benefit Policy Accumulated cash value
1,000,000 Initial 10 years 700,000
10-20 years 500,000
20-40 years 400,000
8,000,000 Initial 10 years 2,000,000
10-20 years 1,500,000
20-40 years 1,000,000
30,000,000 Initial 10 years 8,000,000
10-20 years 4,000,000
20-40 years 2,000,000
Custom whole life policy
Reliability
Custom whole life policy is offered by different companies across the United States. Below information represents companies that could be used for this purpose concerning the company’s history and background. The information presents insights based on ratings, reviews, financial stability, and efficiency in execution, reputation, and access to information. The information also is based on the provision of the service regarding operation backgrounds and competitive ability in the field.
The data is based on A.M best data ad presents the best life insurance companies with top ratings on whole life policy provision.
Insurance company Percentage market share Superior rating Policies offered Special features
1. Northwestern Mutual 8.46% market share AA+ superior rating Whole life
Universal life
Variable life A hybrid term
Whole life product
2. New York Life Insurance 5.74 % market share A++ superior rating Term life
Whole life
Universal life Corporate sponsored life insurance
Only company to offer custom whole life policy
3. Met life-metropolitan life and affiliated Cos 5.26% market share A+ superior rating Term life
Whole life
Universal life Acceptance of whole life policy is guaranteed
4. Lincoln Financial group 4.96% market share A+ superior rating Term life
Whole life
Indexed Universal life
Variable universal life 5. John Hancock financial 4.16% market share A+ superior rating Term life
Whole life
Indexed Universal life
Variable universal life Discounts offered to customers leading a descent lifestyle such as regular exercises and health screening
6. Prudential Financial 3.91% market share A+ superior rating Term life
Whole life
Survivorship life
Universal life 7. Masss Mutual 3.82% market share A++ superior rating Term life
Whole life
Universal life
Variable universal life Acceptance of whole lofe policy is guaranteed
8. State Farm Life 3.6% market share A++ Superior rating Term life
Whole lofe
Universal life Life insurance customer satisfaction in 2015
9. Transamerica 3.57% market share A+ superior rating Term life
Whole lofe
Universal life
Variable universal life 10. American International Group (AIG) 2.87% market share A superior rating Term life
Whole life
Universal life
Variable lofe
Indexed universal life 11. Guardian life 2.72% market share A++ superior rating Term life
Whole life
Universal life
Variable universal life 12. Pacific Life 2.65% market share A+ superior rating Term life
Universal life
Indexed universal life
Variable universal life 13. Axa 2.56% market share A+ superior rating Term life
Whole life
Universal life
Indexed universal life
Variable universal life 14. Protective Life 2.07% market share A+ superior rating Term life
Universal life
Variable universal life
Survivorship life Affordability
The table below gives a breakdown of financial flows on a monthly basis. It is divided regarding inflows and outflows including identification of the specific item. The miscellaneous expenses have been grouped together. This information relies on our earlier discussion and interviews held at initial stages of this project. I have also considered the financial reports, bank statements, and credit card report.
Monthly income and expenditure spreadsheet
Inflows Amount in $ Outflows Amount in $
1. Salary 80,000 debt repayment 4,000
2. Business income 45,000 Housing 800
3. Dividends 12,000 Utilities 900
4. Other Investment Income 9,000 Groceries 1,000
5. Other income 5,000 Living 1,000
6. Transportation 890
7. Healthcare 500
8. Personal 600
9. Entertainment 200
10. Business expenses 900
Other expenses 1200
Totals According to New York life Insurance Company, the policy is issued to people under the age of seventy years. The minimum face amount that can be offered in this form of policy is $50,000. The premiums will be paid in either semiannually or annually terms. This policy also has periodic payment options for accessing the cash values when the policy is paid up entirely.
Coverage
This policy covers the whole period of the client. Its structure requires the client to pay premiums at designated time according to the customer’s ability to pay. The policy will remain in force for payment of premiums and completion of policy payment. It will cover you from the age of forty years till death holding that all the requirements will be followed. As indicated earlier, the medical report shows no major complications that ought to be highlighted in this research study for coverage. I noted that you have been leading a healthy lifestyle with regular exercise and medical examinations.
Cash or no cash value
Like it in the whole life policy, custom whole life policy borrows some features regarding payment of money value. The policy accumulates a tax-deferred cash value. The cash value provided will provide a specific financial objective. The custom whole life policy creates a cash value that is enough in providing income for retirement, education and family survival.
Bibliography
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