Question

deshawn is 38 years old and is married with 3 children, ages 2, 4, and 6. he makes $45,000 a year and is planning to retire when he turns 60. from the following three options, deshawn decides to buy the $900,000 20 year term policy. given deshawn’s scenario, assess whether deshawn made a wise decision.

Answer 1

It is likely that DeShawn made the right decision when choosing this policy. In order to assess this, we need to look at both the policy and the salary he currently receives. Considering his current salary, DeShawn's policy will cover his family for an adequate period of time.

Answer 2

No. He has not made a good decision. 

his youngest child will be just turning 20 by the time Deshawn is 58. If Deshawn chooses to help that child get set up in life - or even marry, all of those occurances will be happening in the following 5 years. This would include after retirement time for Deshawn.