Client Success Stories – Marcus, Violet & Children
Client Facts
Family Information: Marcus (age 40), Violet (age 41), Ned (age 6), Nick (age 2)
Health Status: healthy, non-smokers
Client Needs & Wants: Income replacement for 10 years and pay for their children’s post-secondary education (in the event of Marcus or Violet’s death)
Problem
Marcus & Violet both earn in the $75,000/year range through their respective jobs, with a significant portion of that going towards their living expenses. They have limited excess funds each month once expenditures are paid. This poses great concern for Marcus & Violet, as if one them were to pass away, the income shortfall would be crippling to their lifestyle. They wanted to ensure either of their annual incomes could be replaced for a period of 10 years. In addition, they wanted money set aside so Ned & Nick would have at least four years of post-secondary education paid for.
Solution
The solution to Marcus & Violet’s problem was term life insurance. Before proceeding, the correct amount of insurance was calculated through a detailed approach. We estimated the cost of university based on current rates plus inflation, and then incorporated ten years of lost salary plus inflation. This generated an immediate insurance need for Marcus & Violet of $900,000. As time goes on, their insurance need may decrease, so their policy’s death benefit could be reduced if needed.
The most suitable type of life insurance for Marcus & Violet was term coverage, which provides a cost-effective way for families to protect their lifestyle for a set amount of time. Marcus & Violet have peace of mind and control, knowing if something were to happen, the surviving loved ones would not be forced to move or alter their lifestyle significantly. Also, the children have money set aside for university.
Contact Jeff Graham at (604) 363-7549 or jeff@firstoakfinancial.ca for more information on lifestyle protection.
DISCLAIMER: client names have been changed to protect their identity.