| Course | GF590 Personal Financial Planning |
|---|---|
| Unit | Unit 5 |
| Paper type | Risk exposure review |
| Length | About 880 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Finance |
| Updated | October 2026 |
Free sample paper for GF590 Unit 5
What the Household Could Not Pay For Itself: A Unit 5 Risk Exposure Review
[Student Name]
Purdue University Global
GF590: Personal Financial Planning
Unit 5 Risk Exposure Review
[Instructor Name]
[Date]
The household, its coverage, benefit estimates and needs figures are composite and illustrative; the sources cited are real.
Method
Each exposure is taken through the same four steps: the event, what it would cost, what already covers it, and what remains. Figures come from the net worth and cash flow statements, so the review ties to earlier work rather than to rules of thumb. Life needs use a capital needs method with a real discount rate of 2 percent, and essential spending of $6,948 a month is the benchmark for income losses (Rejda et al., 2020).
Death of the Pharmacist
What it would cost. The survivors would need $25,100 to clear the card and auto loan, $15,000 for final costs, a six-month reserve of $41,688, and $122,904 for the children's college goals after their 529 balances. Replacing the pharmacist's contribution to household income, about $80,323 a year after taxes and her own consumption, for fifteen years until the younger child finishes college, has a present value of $1,032,089.
What offsets the cost. The children would receive Social Security survivor benefits on her record until each turns 18. Using her statement's estimate of a $2,950 monthly benefit at full retirement age, each child would receive about 75 percent of that amount, a present value of about $431,672. The teacher's own earnings are above the limit that would reduce a surviving parent's benefit to nothing, so none is counted for her (Social Security Administration, 2025).
What remains. Net need is about $805,109. Group life of $142,000, an existing $250,000 term policy and the $16,400 brokerage account cover $408,400. About $396,709 is uncovered.
Death of the Teacher
What it would cost. The same debts, final costs, reserve and college need apply, $204,692 together. Her contribution to household income, about $32,278 a year after taxes and her own consumption, has a present value of $414,755 over fifteen years. Need totals $619,447.
What offsets the cost. Her job is outside Social Security, so her record provides no survivor benefit for the children. The pension would refund her contributions of $58,300; its survivor provisions for minor children need to be confirmed. District group life pays one year's salary, $61,000, and the brokerage account adds $16,400.
The lower earner leaves the larger gap: because the teacher's work is outside Social Security, her death brings no benefits for the children, and about $483,747 of need is uncovered against $396,709 for the pharmacist.
Disability
Disability gets a different test: whether the remaining income plus benefits covers essential spending. If the pharmacist were disabled, group long-term disability would pay 60 percent of her salary, $7,100 a month before tax, or roughly $5,700 after tax because her employer pays the premium. With the teacher's $3,704 of take-home pay, income would be about $9,400, above essential spending, but only if all saving stops. The exposure is rated partly absorbable. If the teacher were disabled, the pharmacist's take-home pay of $8,460 alone covers essential spending, and her pension plan's disability provisions add to that. This exposure is absorbable.
Property
The homeowners policy covers the dwelling for $330,000. A contractor's rebuild estimate is $372,000, so a total loss would leave a gap of about $42,000, twice the household's cash. Because coverage exceeds 80 percent of replacement cost, partial losses would still be paid in full under the policy's terms.
Liability
Both cars are insured to the common 100/300 split, meaning one victim's injuries are paid up to $100,000 and a whole crash up to $300,000. Nothing sits above those limits. A serious accident could produce a judgment well above those limits, and net worth of $433,900, plus future wages, would be exposed. Children approaching driving age will raise this exposure within five years, since a teenage driver on the family policy adds both claims and the chance of a lawsuit naming the parents. A rental property or a dog of a breed some insurers exclude would raise it further, and the couple should mention either if their plans change.
Ranking Matrix
Each exposure is placed by severity and likelihood and given a treatment.
1. Teacher's death. Severity high, likelihood low, uncovered $483,747. Transfer.
2. Pharmacist's death. Severity high, likelihood low, uncovered $396,709. Transfer.
3. Liability above auto limits. Severity high, likelihood low. Transfer.
4. Total loss of the home. Severity moderate, likelihood low, gap $42,000. Transfer by raising the dwelling limit.
5. Pharmacist's disability. Severity moderate, likelihood moderate. Reduce by building the reserve.
6. Teacher's disability. Severity low. Retain.
7. Small property and auto losses. Retain through deductibles.
Survey evidence on older American couples found that the amount of life cover people carry often has almost nothing to do with how much a death would actually cost the survivor (Bernheim et al., 2003). This review sizes each gap from the household's own figures for that reason.
Exposures Beyond the Household's Means
In order: the death of the teacher, the death of the pharmacist, a liability claim above the auto limits and the total loss of the home. Product choices, such as term length and umbrella limits, are left to the plan.
References
Bernheim, B. D., Forni, L., Gokhale, J., & Kotlikoff, L. J. (2003). The mismatch between life insurance holdings and financial vulnerabilities: Evidence from the Health and Retirement Study. American Economic Review, 93(1), 354-365. https://doi.org/10.1257/000282803321455340
Rejda, G. E., McNamara, M. J., & Rabel, W. H. (2020). Principles of risk management and insurance (14th ed.). Pearson.
Social Security Administration. (2025). Survivors benefits (Publication No. 05-10084). https://www.ssa.gov/pubs/EN-05-10084.pdf
The Purdue Global GF590 Unit 5 instructions
GF590's fifth unit asks you to review a household's exposures to loss and rank them. Take each exposure through the same steps: the event, its cost, what already covers it and what remains. Use figures from your earlier statements rather than rules of thumb. For premature death, build need from debts, final costs, a reserve, education and income replacement, state your discount rate, and subtract existing cover and any survivor benefits, explaining where benefit estimates come from. Test disability against essential spending rather than total income. Review property and liability coverage against replacement cost and net worth. Place every exposure in a matrix by severity and likelihood with a treatment: retain, reduce, transfer or avoid. End by listing, in order, the exposures the household cannot absorb itself, and leave product selection to the plan. Cite risk management sources in APA 7.
How the GF 590 Unit 5 example is put together
A method section sets out the four steps and the 2 percent real rate, citing Rejda and colleagues. The pharmacist's death is sized from debts, final costs, a six-month reserve, education and $1,032,089 of income replacement, less children's survivor benefits estimated from her statement, citing the Social Security Administration. The teacher's death is sized the same way, with no Social Security benefits on her record, and the highlighted finding notes that the lower earner leaves the larger gap. Disability is tested against $6,948 of essential spending. Property and liability sections size the dwelling gap and the exposure above 100/300 auto limits. A seven-row matrix assigns treatments, and Bernheim and colleagues explain why needs are sized rather than estimated by salary multiples. Four exposures beyond the household's means close the review.
Reading the GF590 Unit 5 grading rubric
GF590 risk reviews are graded first on method: each exposure taken through event, cost, coverage and remainder in the same way. Most of the analytical credit then goes to sizing needs from the household's own statements, with the discount rate and benefit sources stated. Recognizing household-specific facts, such as a teacher outside Social Security leaving no survivor benefits for the children, separates excellent reviews from adequate ones. Disability tested against essential spending, rather than full income, shows understanding of what the household must actually pay. Instructors in the MS in Finance program reward a matrix that assigns a treatment to every exposure and a final ranked list of what the household cannot absorb. The risk text by Rejda's team frames the method, Bernheim's study supports sizing need over salary multiples, and an SSA booklet backs the survivor estimate.
GF590 Unit 5 help: mistakes that cost points
Weak GF590 Unit 5 reviews list the policies the household owns instead of the events it faces. Life insurance need is estimated as a multiple of salary, which ignores debts, college goals and survivor benefits. Survivor benefits are omitted or assumed without a source. The lower earner is assumed to need little cover, which is wrong when that earner's job provides no Social Security protection. Disability is tested against full income, overstating the need. Property limits are not compared with rebuild cost, and liability is ignored because no claim has happened. If your case household differs, perhaps renters, a single parent or a business owner, keep the same sequence: event, cost, coverage, remainder for each exposure, a matrix with treatments, and the exposures beyond the household's means in order.
Get a GF590 Unit 5 example written to your instructions
Attach the household facts from your GF590 Unit 5 case, including existing policies, the statements built in prior units and the rubric. The custom review sizes each exposure from your own figures, tests disability against essential spending, ranks everything by severity and names the exposures too large for the household to carry itself. Free for a first sample; 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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GF590 Unit 5 questions, answered
Should the review recommend specific policies?
It usually names a treatment, transfer through insurance or retention, and leaves product selection to the plan. The sample stops at ranked exposures with amounts, so the later plan can fund cover in the right order. If your prompt asks for products, describe type, amount and term rather than a named carrier, since the case gives no basis for choosing one.
Where can I find a free GF590 Unit 5 sample paper?
A complete GF590 Unit 5 risk exposure review is available here, sizing death, disability, property and liability exposures for a pharmacist and teacher, with a ranking matrix and APA 7 references.
Why does the teacher's death leave a larger gap than the pharmacist's?
Her job is outside Social Security, so her death brings no survivor benefits for the children. The pharmacist's record would pay the children benefits worth about $431,672, which the teacher's cannot.
Where do the survivor benefit figures come from?
From the pharmacist's Social Security statement estimate of $2,950 a month at full retirement age. Each child would receive about 75 percent of that until age 18, valued at a 2 percent real rate.
Why is the teacher's own benefit as a surviving parent not counted?
Her salary is above the earnings limit that reduces a surviving parent's benefit, so that benefit would be withheld in full while she works. Only the children's benefits are counted.