The Butterfield case Report Harvard Case Solution & Analysis

The Butterfield case Report Case Study Solution

The Buterfield family has five members’ husband and wife john and Haley, and they have three children. They also have two vehicles. Meanwhile, John and Haley have insured their home and automobiles as well. Since, the family has been paying $1,100 premium semi-annually for the insurance policy that they has purchased against the all vehicles. On the other hand, Haley owns a universal life insurance policy, and pays annual premium of $400. Whereas, John is insured through his employer’s term policy.

However, butterflied family also has health policy and pays 66% by employer of John, where he is also covered into the disability insurance policy, and other family members are not covered by the family.

The Butterfield family has already sufficient life insurance policy. However, they should purchase the life insurance policy in which their children should be nominee for the payment. Since, their younger son would have to go college, and on the other hand their child troy is also studying in the university. Meanwhile, their daughter also tend to join the college soon. They should purchase the universal life insurance policy with the face of value of $200,000 combined to meet with the future needs.

The John is insured through his employer, meanwhile it is advantage the john need not to pay the premium, but a partial payment of 33%. However, it can be determined that the policy would not be sufficient for their current given goals, and objectives. Because, that term policy would only provide one times of his annual salary. Indeed, the face value of the policy would be reduce by 50% when the john turns 50, and would terminate at the age of 70.

The Co-insurance term policy is purchased to cover the partial losses to the property. Meanwhile, owner has to prove his losses through the justifications. Meanwhile, they would have to pay the low premium due to the partial co-insurance. Meanwhile, the company would not pay more than the specified amount of the policy which is said to be replacement value either be 80% or more or less.

The family is under the huge insurance policies obligations. However, if they purchase the combined insurance policies. Since, the policies provided by the employers should remain constants. But the insurance policies owned by the family should be revised as their given goals. However, they need to take care of premiums they has been paying over different policies. Whereas, it is possible to reduce the premium by combining these policies.

No, they should not purchase any liability insurance. Since, they is no need to purchase the liability policy, because they are already under many obligations. Indeed, if they purchase any other policy they would incur another expense. So, this would have negative affect over the cash flows, and might disturb them financially. Therefore, it is recommended to the butterfield family that they should not purchase the liability insurance policy.

The Butterfield case Report Harvard Case Solution & Analysis

 

 

A long-term care policy care policy that insures the long-term care of the insurer. Since, this long-term care is not covered by any insurance policy. Therefore, it is much better for the family that they should purchase the long term care policy that would cover their long term chronic disability conditions. Meanwhile, they child’s would have no obligation due to the policy indeed.

The family is covered by health insurance policies. However, their insurance health policies cover all their family members. Meanwhile, they are paying the premium over polices at different modes. But, they are paying huge health insurance premium payments. Since, these payments could be reduced by combining these policies into the one combined policy for the whole family. Therefore, it is a big disadvantage for the company..................

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