discuss-taxation-of-life-insurance-proceeds-and-disability-insurance-payments-assume-that-bob-s-50-partner-in-the-business-is-his-old-college-friend-rick-wilson-rick-s-wife-delores-has-no-interest-in-running-the-business-do-the-parkers-need-a-buy-se

APA format 4 additional pages added to the attached paper

Please add to the attached paper Part 3 . PART 1 AND 2 HAVE ALREADY BEEN COMPLETED

Scenario

Bob and Barbara Parker are in their 30s and have been married for 7 years. They have 2 children. They own 2 cars and a home valued at $500,000. Bob owns 50% of a garage door installation company valued at $2,000,000. The business provides the Parkers with a gross annual income of $150,000 per year. The Parkers have $300,000 in their retirement account and $100,000 in their personal checking account. Bob’s partner, Rick Wilson, owns the other 50% of the business. Bob has a $250,000 term life insurance policy but no other insurance coverage.

Part 1 (Week 4) Completed see attached paper

• What should the Parkers consider when deciding what insurance coverage they need?
• Do they have sufficient insurance coverage? If not, what type of insurance coverage do you recommend for them?
• How can they keep their insurance costs down?

Part 2 (Week 4) Completed see attached paper

Complete a chart with recommended coverage and amounts of coverage.

Part 3 (Week 5)

• Discuss taxation of life insurance proceeds and disability insurance payments.
• Assume that Bob’s 50% partner in the business is his old college friend Rick Wilson.
• Rick’s wife, Delores, has no interest in running the business. Do the Parkers need a buy-sell agreement? Describe the types of buy-sell agreements.