Client Success Stories – Tony and Tanya
Client Facts
Client(s) Information: Tony (age 37) & Tanya (age 39)
Health Status: Healthy, non-smokers
Client Needs/Wants: Pay off all debts in the event of one of their deaths
Problem
Tony and Tanya were referred to me from an existing client. They were concerned about the amount of money they owe on existing assets, such as their house, rental property, and motorhome. In the event one of them passed away, the remaining spouse would not be able to make the debt payments. Furthermore, neither of them wanted to be in a situation where they were forced to liquidate assets in order to stay solvent. In addition to paying off debts, they wanted to have $50,000 for final expenses, such as estate fees, taxes, funeral costs, etc.
Solution
The solution to Tony and Tanya’s above problem was to apply for a term-20 life insurance policy. Based on their health status, they were approved in a matter of weeks. They are co-owners of the life insurance policy and are also both insured under one policy (called a Joint First-To-Die). For $750,000 of life insurance coverage, which was an amount determined based on a thorough Needs Analysis, they pay just under $100/month. This premium amount is guaranteed to not increase over the next 20 years.
Tony and Tanya took action and now have the piece of mind knowing if one of them was to pass away, the grieving widow would not be bombarded with debt payments and liquidity issues. Money should be the last thing on the surviving spouse’s mind, but unfortunately without life insurance in force, it becomes the cause of further crippling stress during a time of anguish. Tony and Tanya have put a safety net in place against this potential problem.
Contact Jeff Graham at (604) 363-7549 or jeff@firstoakfinancial.ca for more information on covering debts in the event of death.
DISCLAIMER: client names have been changed to protect their identity.