I shared the case through $3$ pictures, but i did not get the full answers for the case study. Client Situation

You are a financial planner with a specialty in risk management. You've completed the insurance in financial planning course at GBC and have obtained your license to sell insurance products. You love your career and have built a successful practice based mainly on referrals from your satisfied clients. Tom, aged $42,$ and Lauren, aged $41,$ are new clients. Tom works in sales for a large pharmaceutical company earning a base salary of $\backslash$$$160,000$ a year with annual commissions of $\backslash (\backslash$$ $50,000\backslash )$ a year. Lauren, is a real estate agent. Lauren works from home, typically earning $\backslash (\backslash$$ $120,000\backslash )$ a year $($approximately $\backslash (\backslash$$ $90,000\backslash )$ after she pays realtor expenses$).$ Both Tom and Lauren are happy with their careers and believe they could find employment easily, if something should happen. They feel pretty comfortable financially but have asked you to flag any gaps that you can see in their risk management strategy. They also have specific questions that they'd like you to address.

Tom and Lauren married and they have two children: Nat, aged $17,$ and Sara, aged $16.$ Lauren's mother, Carrie, lives with them. Carrie is $79$ years old and widowed. Carrie moved in with Tom and Lauren to help with their children, however her health has started to deteriorate. Lauren, thinks her mother will live until she is $85$ years$-$old.

When their daughter Sara was born, Tom and Lauren purchased a new home. The house cost $\backslash (\backslash$$ $550,000\backslash ),$ at the time, and they have an outstanding mortgage of $\backslash (\backslash$$ $260,000\backslash ).$ Although Tom and Lauren do not plan on moving, the house, based on its location, was appraised at $\backslash (\backslash$$ $2\mathrm{.}1\backslash )$ million. The mortgage on their home is the only long$-$term debt they have and the mortgage is insured with the lender $($bank$),$ should Tom or Lauren die $($joint first$-$to$-$die policy$).$ When they bought their home, they bought a comprehensive homeowners' insurance policy with an $\backslash (80\backslash \%\backslash )$ coinsurance factor. The amount of coverage they have hasn't changed and its equal to the cost of the home at time of purchase. The current replacement cost of the house is estimated at $\backslash (\backslash$$ $1\backslash )$ million.

Nat is in his final year of high school and will go to college in the fall. He's been accepted into the automotive program at a community college close to his home and plans on living with his

parents until he finishes his studies. Sara, in grade $11,$ has indicated that she would like to study law. Although there are many great law schools in Canada, Sara would like to study in the US or the UK$.$ Tom and Lauren set$-$up RESP's for both Nat and Sara. The market value of Nat's RESP is $\backslash (\backslash$$ $48,357\backslash )$ and Sara's RESP is $\backslash (\backslash$$ $32,400\backslash ).$

Although working in sales has been hard, both Tom and Lauren have done well. Tom's employer provides all employees with group benefits, which Lauren and the children are enrolled in$.$ Here is a summary of their insurance coverage.

Current Insurance Coverage

Tom's group benefits from his employer include the following:

$\backslash (\backslash$square $\backslash )$ Life Insurance: Two times base salary $($excludes bonuses and commissions$)$ to a maximum of $\backslash (\backslash$$ $300,000\backslash ).$

$\backslash (\backslash$square $\backslash )$ Dependant Life Insurance: $\backslash (\backslash$$ $25,000\backslash )$ employee spouse, $\backslash$$$10,000$ employee dependant child.

$\backslash (\backslash$square $\backslash )$ Disability Insurance: Coverage for $\backslash (70\backslash \%\backslash )$ of gross income, to a maximum of $\backslash$$$7,000$ a month. The coverage has a $60-$day elimination period with a benefit payable until age $65.$

$\backslash (\backslash$square $\backslash )$ Extended Health Coverage: Plan covers spouse and children living in the same household.

No deductibles or maximums. Coinsurance factor $\backslash (80\backslash \%,\backslash$$ $100\backslash )$ annual deductible.

$\backslash (\backslash$square $\backslash )$ Dental: Comprehensive, $\backslash (\backslash$$ $25\backslash )$ deductible per claim.

$\backslash (\backslash$square $\backslash )$ Vision: Covered with an annual maximum of $\backslash (\backslash$$ $1,000\backslash )$ per claimant.

In addition to the group insurance, Tom and Lauren have a $\backslash$$$250,000,20-$year term, joint first$-$todie life insurance policy. They purchased the policy when they married, and it expires in $1-$year. Around that time, they bought disability insurance. Lauren's policy has a $\backslash (\backslash$$ $2,500\backslash )$ monthly benefit and Tom's policy has a $\backslash (\backslash$$ $2,000\backslash )$ monthly benefit. Lauren bought the policy because she is a self$-$employed realtor and wanted some income protection, Tom to top up coverage. Both policies have a $90-$day elimination period, and pay a non$-$taxable benefit.

Lauren does not have any insurance with her employer, including errors and omissions liability. When she was young, her parents bought her a permanent life insurance policy, with a $\backslash$$$50,000$ death benefit, and named themselves the beneficiaries. Children

While it has been a challenge for Tom and Lauren to raise their children, they want them to succeed in life. Tom and Lauren want to support their children while they're in school. Sara's education is estimated to cost $\backslash (\backslash$$ $60,000\backslash )$ a year, for $4-$years. Nat's education is estimated to cost $\backslash$$$20,000$ a year for $3-$years. To make the support equal, Tom and Lauren plan on buying Nat a car $\backslash ((\backslash$$ $40,000)\backslash )$ and giving him $\backslash (\backslash$$ $100,000\backslash )$ when he graduates from his program to start a business. At first, Sara thought this was unfair but now understands what her parents are trying to do $($or at least she says she understands$).$

Current Part I:

$1.$ A