Client Profile Mr. & Mrs. Austin Mary and Steve Austin have been married for 5 years and have a 4-year-old daughter named Lindsay. The Austins are starting to think more about their future with the aim of implementing their short-term and long-term lifestyle goals and financial plans. Mary and Steve are both aged 35.

The Austins are looking to purchase a house with an approximate purchase price of $1, 500,000.00 in the Oshawa area of Ontario. They are very excited as both Mary and Steve have never owned a home before. Steve Austin works as a manager for a robotics manufacturer and earns $100,000 gross annual income ($75,384 after tax). Mary works for a small local manufacturing business as a chief accountant earning $125,000 gross annual income ($89,322 after tax).

Two years ago, Mary received an inheritance from her late father in the amount of $200 000. With this money they each opened a TSFA (Tax Free Savings Account) and invested $15 000 each. They also opened an RSP for the first time and contributed $10,000 each. The residual balance of the inheritance, $150,000 was deposited into a savings account at the bank because they plan to use the funds as a down payment.

Steve and Mary have disability insurance and health care insurance through their employers but neither has a group life insurance plan. They know they both need to purchase life insurance, and have decided on Term Insurance, but they do not know how much or for how long to buy. They also need to understand the expected cost of the insurance policies.

Assignment:

Create a Financial Plan strictly focused on the identified insurance needs for the Austin family.

For this assignment, imagine you are a Financial Planner, specializing in Insurance. You met with the Austins last week, and you are now tasked with preparing a financial plan focused on insurance for them. You will make specific recommendations on how they can protect and insure their assets and future income levels to maintain their lifestyle. You are confident if you provide a comprehensive plan that aligns to their goals, you will earn their business for many years to come. You plan to review the report with them at your next meeting.

1. Life Insurance: Make a recommendation on how much Term Life Insurance Steve and Mary should purchase. Justify the amount of insurance you are recommending. State ALL of your assumptions, and then provide a quote for Steve and a quote for Mary. Search the web and site your references

2. Home Owners Insurance: The Austins have never owned a home before. How much does house insurance cost? Leverage your knowledge developed in this course, search the web and provide the Austins with 2 quotes for home owners insurance. Here is a link to the property they are looking at 311 Niagara Drive Oshawa ON: https://www.realtor.ca/real-estate/24738325/311-niagara-dr-oshawa-samac

If the house is SOLD by the time you start the assignment, and you are unable to access the details of the house, find another home in the Oshawa area that meets their purchase price needs. Site your references, state ALL of your assumptions and make a recommendation between the 2 choices as to which one the Austins should select.

3. Automobile Insurance: The Austins just purchased a new 2022 Toyota RAV, but as of yet have not found vehicle insurance. State ALL of your assumptions and then search the web and provide the Austins with a quote. Knowing that there are many variables when purchasing automobile insurance alter 1 feature and provide the Austins with a second quote. (You may consider altering the deductible, the replacement value or coverage amount, the choice is yours) Make a recommendation as to which quote the Austins should choose.

4. Health Care Insurance: Steve has been considering leaving his robotics job for some time now and venturing out to start his own company. He has heard that getting health + dental benefits / insurance coverage to protect himself and his family can be expensive. Search the web and find Steve a quote for health and dental coverage. State your assumptions and site your reference.