Pick a young married couple of your choice (let’s call them John 40, and Mary 38) with two small children ages 3 and 5 and go through the six step planning process with them as it relates to risk management.
Pick a young married couple of your choice (let’s call them John 40, and Mary 38) with two
small children ages 3 and 5 and go through the six step planning process with them as it relates
to risk management.
You need to find out as much detail as possible about them and include it in your essay,
including: what kind of income and savings they have. How much they owe for mortgage, line of
credit, student loan, credit card etc and how much assets they own.
Make John the breadwinner and Mary stay at home mom who will take care of the kids.
What are their needs for Risk Management (insurance)? Because John is the only person
working outside the home,
what will happen to the family if John dies today
? How much
insurance they need? Expect that the children need taking care of until they finish university at
You need to do an insurance Needs Analysis
and come up with exact dollar amounts
as to how much insurance they need. (Hint: Insurance Needs Analysis is dependent on their
income and expenses and future needs therefore you need to choose their income and needs
such that your Needs Analysis is not too complicated). To come up with a dollar amount, you
also need to do an
Education Needs Analysis for the children’s post secondary education
Steps to take
Come up with an Income statement (how much they earn)
Come up with their annual expenses today.
How much excess/shortfall of income they have now?
Come up with their assets.
If John dies today, they need money for the next how many years? (Assume money is
needed only until both kids finish University (XXXX Years) at which point Mary remarries
You need to calculate their annual needs (expenses) adjusted for inflation.
Add up all their financial needs (pay off mortgage, pay for school, pay for their annual
expenses for the next XXXX years and whatever else you think they need).
Buy enough insurance that pays them for these calculated amounts.
In each step you must have at least one important OBJECTIVE and clarify how you achieved it.
You are trying to answer ONE QUESTION in each step and each question starts with a “How”.
For example: How do you establish client-planner engagement with Mary and John?
Please look at the rubric in conjunction with this document.
Your paper should be at least 10 pages but no more than 12 pages with line spacing of 1.5 and
font of Arial 11 (Same format as this instruction).
Submit your documents in WORD document only (no pdf etc).