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Life, Health, and Disability Insurance Jamie Lee and Ross both have employer-sponsored group health and dental plans that offer both a small amount of life insurance (525,000 each), long-term disability (two-year any own definition of disability for 67 percent or their salary) and a 80/20 co-pay health and dental plan. They feel lucky as they know the cost of health care can become very expensive with twins on the way. Jamie will go on maternity leave for 12 months and receive the maximum taxable El benefit of $513 per week. They will use savings to supplement the income while she is on maternity leave Upon the birth of his two children, Ross immediately had worries about being able to provide for the crow. ing family: diapers, formula, post-secondary expenses times two! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family? What if they were to become disabled or were diagnosed with a critical illness? Questions 1. Within days of the twins' arrival, Jamie Lee and Ross began researching and comparing various companies for the purchase of a life insurance policy. What characteristics should they look for when choosing a life insurance company? What sources could they reference for help? 2. Jamie Lee and Ross need to ensure that the surviving spouse and the children will not experience financial hardship in the event of a loss Using the income replacement method and considering Ross's salary in the calculation, how much life insurance will they need? 3. With so many policy variations to choose from, Ross and Jante le are unsure which compang is offering the most competitive rates How will they be able to compare the rates between the various companies! Jamie Lee and Ross have a limited budget for life insurance, given that they also have the additional present day expenses of the twins to consider What tupe of life insurance would you recommend for the family at this life stage, and what are its associated advantages and disadvantages? 5. What are some features that would become important for them when looking at their group health and dental benefits plans? 6. What feature of the long-term disability component of the employer Sponsored plan should create a concem from a planning standpoint and how could they alleviate this concer? 7. What other insurance could they consider to add as a rider or as a stand alone poher to protect themselves from financial hardship if either one were diagnosed with cancer? Current Financial Situation Ass (Jamie Lee and Rocombined) Chequing account: $1,000 Savings account: $26,200 Emergency fond savings account: 518,000 TFNA balance: $24.000 Car: $11.000 (Jamie Lee) and 519,000 (Rosa) Liabilities (Jamie Lee and Rose combined) Student loan balance: 50 Credit card balance $1,500 (they intend to pay this off immediately Car loan $8.000 Income 1. Jamie Lee $15.000 gross income (631,600 net income after taxes) NOTE this will change to the leader week prior to birth Ros $73,000 gross income (560,800 net income after taxes) Monthly Expenses Mortgage: 51,612.77 Property taxes $100 Homeowner's insurance $150 Utilities $350 Food: $700 (includes diapers now) Gas/maintenance: 3185 Credit card payment: $1,500 (as they will pay it off in full this month) Car loan payment: $389 Entertainment $150 RRSP: $300