Question
Abraham is a professional in his early 40s. He runs a very successful business with his long-time friend and partner, Benjamin. Abraham is single and
Abraham is a professional in his early 40s. He runs a very successful business with his long-time friend and partner, Benjamin. Abraham is single and lives a life of luxury since he has no financial dependents. He does not ever want to have kids but is open to finding a life partner and getting married at some point.
Abraham and Benjamin have worked over 15 years together to build the business and they cannot run it without each other. They each bring a unique component that the other cannot replace. Abraham spends winters down south to escape the cold city.
Abraham has a penthouse condo in downtown Toronto with a mortgage remaining of $350,000. He has no other debts. He has a small monthly cash flow surplus. Since he runs his own business he has no benefits and no pension. He has an existing RRSP account with a current value of $225,000.
Required for each of the family scenarios below:
Discuss the need for various types of insurance or use of other financial planning programs discussed in the course.
Explain whether they would benefit from having various coverages or programs or any changes to their existing coverage. Include your rationale.
For life insurance discussions, indicate how you would estimate the coverage amount needed (words only, no calculations) and what type of life insurance would be best suited for their situation.
What additional specific questions or specific details would you need from the client to provide recommendations?
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