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I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife works f

ID: 2648272 • Letter: I

Question

I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife works from home and earns an additional $50,000. If either my wife or I should pass away my family would be in financial distress. Owning which of the following products can be purchased to increase the chances that the family remains solvent should one wage earner die?

Shares of IBM

Life Insurance

Annuities and Shares of IBM

Annuities

Life Insurance and Annuities

Shares of IBM

Life Insurance

Annuities and Shares of IBM

Annuities

Life Insurance and Annuities

Explanation / Answer

Annuities: Annuities are fixed monthly payments/receipts with certainty.The chief advantage is that we can expect to receive money month after month for as long as we live