Let's assess DeShawn's decision based on the given information.
1. Calculating the Years Until Retirement
DeShawn is currently 38 years old and plans to retire at 60.
[tex]\[
\text{Years until retirement} = 60 - 38 = 22 \text{ years}
\][/tex]
2. Adequacy of the Term Policy
DeShawn bought a 20-year term policy. We need to determine if this duration is adequate to cover until his retirement.
[tex]\[
20 \text{ years} < 22 \text{ years}
\][/tex]
Since the term policy does not cover the entire period until DeShawn’s retirement, it is not adequate.
3. Coverage for the Youngest Child
DeShawn has three children aged 2, 4, and 6. The youngest child is 2 years old. We need to determine if the policy covers the youngest child until they turn 18.
[tex]\[
\text{Years until the youngest child is 18} = 18 - 2 = 16 \text{ years}
\][/tex]
The 20-year policy does cover the youngest child until they turn 18 because:
[tex]\[
20 \text{ years} > 16 \text{ years}
\][/tex]
4. Face Value Assessment
DeShawn's current salary is [tex]\(\$45,000\)[/tex]. A common rule of thumb is that life insurance should cover about 10 times the annual salary.
[tex]\[
10 \times 45,000 = \$450,000
\][/tex]
DeShawn’s policy has a face value of \$900,000, which is more than double this amount. So, the face value might be considered too high.
Summary Decision:
- The term policy does not cover DeShawn until retirement (22 years).
- The policy does cover the youngest child until they turn 18 (16 years).
- The face value is more than 10 times DeShawn’s salary, which could be considered excessive.
Based on this analysis, DeShawn's decision might not be the most appropriate for his needs because the policy does not cover him until his retirement age and has an excessive face value.
Therefore, the conclusion would be:
[tex]\[
\boxed{d. \text{DeShawn's current policy has too high of a face value and does not cover his family long enough}}
\][/tex]
