Client Profile Mr. & Mrs. Austin Mary and Steve Austin have been married for 5 years and have a 4-year-old daughter name

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Client Profile
Mr. & Mrs. Austin
Mary and Steve
Austin have been married for 5 years and have a 4-year-old daughter
named Lindsay. The Austin’s are starting to think more about their
future with the aim of implementing their short-term and long-term
lifestyle goals and financial plans. Mary and Steve are both aged
35.
The Austin’s are looking to purchase a
house with an approximate purchase price of
$1,
500,000.00 in the Oshawa area of Ontario. They are very
excited as both Mary and Steve have never owned a home before.
Steve Austin works as a manager for a robotics manufacturer and
earns $100,000 gross annual income ($75,384 after tax). Mary works
for a small local manufacturing business as a chief accountant
earning $125,000 gross annual income ($89,322 after
tax).
Two years ago, Mary received an
inheritance from her late father in the amount of
$200 000. With this money they each
opened a TSFA (Tax Free Savings Account) and invested $15 000 each.
They also opened an RSP for the first time and contributed
$10,000 each. The residual balance of
the inheritance, $150,000 was deposited into a savings account at
the bank because they plan to use the funds as a down payment.
Steve and Mary have
disability insurance and health care insurance through their
employers but neither has a group life insurance plan. They
know they both need to purchase life insurance, and have decided on
Term Insurance, but they do not know how much or for how long to
buy. They also need to understand the expected cost of the
insurance policies.
Assignment:
Create a
Financial Plan strictly focused on the identified insurance needs
for the Austin family.
For this assignment,
imagine you are a Financial Planner, specializing in Insurance. You
met with the Austin’s last week, and you are now tasked with
preparing a financial plan focused on insurance for them. You will
make specific recommendations on how they can protect and insure
their assets and future income levels to maintain their lifestyle.
You are confident if you provide a comprehensive plan that aligns
to their goals, you will earn their business for many years to
come. You plan to review the report with them at your next
meeting.