The Cash for Clunkers program was one of the most popular governmental initiatives aimed at solving the economic and financial issues that Americans faced during the world economic recession. The essence of the program was in the governmental help, up to $4,500, for those willing to trade their used vehicles in and buy new or more fuel-efficient used ones. After the end of this program, the government could pay more attention to the issues of increased unemployment that emerged during the above-mentioned recession. To fight unemployment and growing poverty, the government could resort to creating new working places by solving another issue, i. e. fuel deficiency. Thus, new working places can be created by introducing the biological fuel production sites that would employ the currently unemployed people and provide cheaper alternatives for gas and oil that report an increase in prices over recent months.
Life Insurance
Basically, in considering the amount of life insurance necessary for any person or family, the seven points should be considered. They include the calculation of after-tax income, adding of outstanding debts, consulting the reputable insurance company, inclusion of potential medical costs and funeral expenses, adding of possible social security or pension, consideration of earning potential of all family members and paying attention to special needs of disabled family members. In Greenwoods’ situation, Nicole’s study will increase the deficiency of the life insurance budget of the family. The sums of $40,000 and $50,000 that both spouses have for life insurance are already deficient, and adding another expenses point will only facilitate deficiency progress in the life insurance budget of the Greenwoods.
Drawing from this, the amount of life insurance provided by the Greenwoods’ respective employers cannot be considered adequate under the condition that Nicole restarts her study for the Master’s degree. After the consideration of all the insurance forming factors, the amount of the Greenwoods’ insurance is already deficient, and adding another expense point cannot improve it to the state of the adequate insurance amount. Given that the family experience no increase in its income and obtains no additional social security payments, the additional spending will definitely damage the budget of the Greenwoods’ which was admitted to be unbalanced from the start. The possibility that the Master’s degree obtained by Nicole after her study will provide wider employment opportunities for the family and will increase its income levels is only a possibility, and at the given moment when the decision is to be made this hypothetical idea cannot serve as the reason to consider the Greenwoods’ amount of life insurance adequate.
Accordingly, already now the Greenwoods have to consider the potential changes of their insurance over their life cycle. Thus, Nicole’s study is the first point of change that will be followed by the need to repay the home mortgage, car lease, and other outstanding expenses. Any health issue or serious illness will also demand reconsideration of the amount of life insurance. The potential of receiving a social security payment might ease the pressure over the insurance budget, as well as the potential income increase caused by better employment conditions of one of the spouses. However, the appearance of children will restrict the insurance budget considerably, especially if the children display disabilities and have special needs. Thus, the Greenwoods’ life insurance needs might change considerably for the better and to the worse over their life cycle and only their ability to allocate funds properly can help them structure their life insurance well.