Eric is an engineer for a local small firm and Janet is an at$-$home mom with

their two small children. They feel they are well insured; both their lives are

covered on their $$160,000$ mortgage, they have in group life insurance from

Eric's employer $($ $$10,000$ on his life and $$5,000$ of spousal life on Janet$),$

and Janet's parents took out a whole life policy on her life when she was an

infant. Their only savings so far is a $$12,000$ TFSA in Eric's name.

Given that the couple's only debts are a $$160,000$ mortgage and a $$10,000$

credit card, is their current coverage sufficient?

Their coverage is sufficient, because in the event of either Eric or Janet's death,

the mortgage would be paid off and there would be enough insurance to pay

off the credit card debt.

Their coverage is insufficient, because group insurance coverage is not owned

by the employee and could be dropped by the employer at any time.

They should add coverage because although the mortgage would be paid off,

there is no other insurance to replace Eric's income should he die prematurely.

Their coverage is sufficient, because even if Eric's group coverage ceased to

exist, the mortgage would be paid off and Janet could use the money in the

TFSA to pay off the credit card balance.