Question
Justin and his wife Annie have come to you for advice on their insurance needs. Here is some background information about John and Jane: Justin:
Justin and his wife Annie have come to you for advice on their insurance needs. Here is some background information about John and Jane:
Justin: - Occupation: Self-employed Roofer ($80,000 before tax income)
-Health: Good
-Age: 36
-Current insurance: None
Annie: -Occupation: Adminst. Assistant (working for federal gov't)
-Income (before tax): $55,000
-Health: Cancer Survivor (last treatment 18 months ago)
-Age: 34
-Current Insurance: No private Insurance, has group benefits through Employer EI.
Justin and Annie have two children, Mark (6 years old), and Stephanie(4 years old). Both kids are relatively healthy. Annie is getting family coverage under the group benefit plan offered by her employer. This plan covers the entire family for Prescription Drugs and Extended Health Care. Annie also gets life insurance (one time her salary) and long term disability (two thirds of her gross income with waiting period of 120 days). Annie is also covered under EI. Justin doesnt have EI or Workers compensation. Justin and Annie purchased their home in Arnprior, ON, for $420,000 two years ago. The balance on their mortgage is currently $330,000. Their mortgage is not insured. The couple own two vehicles. The first one is an SUV valued at $29,000. The balance of the loan on that vehicle is $15,000. The second vehicle is an old minivan that they recently bought from a friend for $4,000. There is no loan on the second vehicle. Justin and Annie would need an income of at least $80,000/year to pay their regular bills in addition to $18,000/year to pay for their mortgage. Justin and Annie have a total of $25,000 of savings in their Tax-Free Saving Accounts. They have no other outstanding debt. See the questions on the next page! Using the information provided, write a proposal for insurance and make recommendations regarding: - Justin's personal private insurance needs and recommendations:
AS THEIR FINANCIAL PLANNER, ANSWER THESE BELOW (INCLUDE PREMIUM COSTS)
Assess Justin's need for Life, Disability, and Critical Illness insurance. If youre recommending a certain line of insurance, include enough details for the type, amount, features, and extra riders (if necessary). For example, if youre recommending life insurance, make sure you elaborate whether it is Permanent and what type of Permanent (T100, WL, WL Par, UL), or Term and what is the duration of Term (10, 15, 20, 25, 30). In each case include your rationale for choosing that solution. - Annie's personal private insurance needs and recommendations: Assess Annies need for Life, Disability, and Critical Illness insurance. What is your recommendation for Annie? Can she take out personal private insurance? - Would you recommend any insurance for the children? What kind of insurance? Explain your answer
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