John is 35 years old and is married to Janine who is 30 years old. They have two children, Luca (six) and Samantha (10 months). Janine is a stay-at-home mum and John has his own construction business, which grosses $390,000 per annum. Their current living expenses are $85,000 per annum.  Other than the business, John and Janine have no other income. Samantha was recently diagnosed with epilepsy, and future medical expenses are estimated to be approximately $10,000 per year. The couple has no insurance in place.

The clients have asked you to undertake a risk assessment for them, indicating a ranking as to which risks are most detrimental to their family's security.

Given the clients' risk assessment, suggest ways that John and Janine might manage their risk.

You would need to consider levels of cover and suggest what insurance products or risk management strategies could be employed to manage the identified risks.

You may suggest to your client that she should bundle her insurances to obtain the most effective cost. 

Explain to the client the concept of bundling insurance products and how it can be an effective strategy?