Question
Mark and his wife Sarah have come to you for advice on their insurance needs. Here is some background information about Mark and Sarah: Mark:
Mark and his wife Sarah have come to you for advice on their insurance needs. Here is some background information about Mark and Sarah:
Mark: Occupation: Self employed Roofer
Annual Income: $82,000
Health: Good
Age: 37
Current insurance: No private insurance No EI or Workers Comp.
Sarah | Administrative Assistant Working for the Federal Government | $55,000 | Cancer survivor Last treatment 18 months ago | 34 | No private insurance Group benefits through Employer EI |
Mark and Sarah have two children, Joey (6 years old), and Sammie (4 years old). Both kids are relatively healthy.
Sarah 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. Sarah also gets life insurance (one time her salary) and long term disability (two thirds of her gross income with waiting period of 120 days). Sarah is also covered under EI.
Mark doesnt have EI or Workers compensation.
Mark and Sarah purchased their home in Arnprior, ON, for $420,000 two years ago. The balance on their mortgage is currently $320,000. Their mortgage is not insured.
The couple own two vehicles. The first one is an SUV valued at $30,000. The balance of the loan on that vehicle is $14,000. 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.
Mark and Sarah would need an income of at least $85,000/year to pay their regular bills in addition to $19,000/year to pay for their mortgage.
Mark and Sarah have a total of $28,000 of savings in their Tax-Free Saving Accounts. They have no other outstanding debt.
Using the information provided, write a proposal for insurance and make recommendations regarding:
- Marks personal private insurance needs and recommendations: o Assess Marks need for Life, Disability, and Critical Illness insurance o 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.
- Sarahs personal private insurance needs and recommendations: o Assess Sarahs need for Life, Disability, and Critical Illness insurance o What is your recommendation for Sarah? Can Sarah take out personal private insurance?
- Would you recommend any insurance for the children? What kind of insurance? Explain your answer.
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