Family a Consists of Two Spouses in Their Early Thirties

question 74

Essay

Family A consists of two spouses in their early thirties who have two children.They have just purchased a house with a low down payment,so they have a fairly high mortgage.They own two older cars.He works as an engineer with growing earnings potential and he has very basic medical coverage and a small insurance policy at work.She is studying accounting part-time while she stays home to look after the children.
Family B consists of a single woman in her late twenties who has been granted tenure as a professor at York University.Student loans are at a minimum,as they have been paid regularly since graduating with her PhD.Because of her dedication to academics,there is no plan for marriage in the long-term future.She owns a recent model compact car and occupies a one-bedroom apartment close to the school.She has a valuable art collection,most of which was left to her by her parents,and she intends to add to it as her growing income permits.Annual long-term vacations are her second passion.She will not qualify for York University's benefit plan until she completes two years of probationary service.
Compare and contrast the insurance needs of these two cases.Please be as comprehensive as possible and provide the reasons for each decision.

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Definitions:

Sales Revenue

A company's total income from product sales or service charges prior to the deduction of any operational expenses.

Gross Profit Rate

A profitability ratio that compares gross profit to net sales, reflecting the efficiency of a company in managing its production and labor costs.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating items to display key components of net income.

Sales Revenue

The gross income from selling products or services, prior to deducting any costs.