Reference no: EM133188235

A young couple with a 2-year-old son. They work for the same employer and each earn an income around $75,000 p.a. Through work they each have life insurance of 1x salary and extended health care. The husband uses his car to drive to client meetings throughout the week. They each contribute equally to the monthly expenses. There is usually a monthly surplus of $200 which they transfer to their savings account. Last year they purchased a home and have adequate home insurance. The only other insurance included in their monthly cash flow is auto insurance. Due to their limited cash flow, they purchased the minimum mandatory auto insurance.

Questions

1. What is the need for various types of insurance or the use of other financial planning programs? Why whether they would benefit from having various coverages or programs or any changes to their existing coverage. Include your rationale.

2. For life insurance discussions, indicate how you would estimate the coverage amount needed (words only, no calculations) and what type of life insurance would be best suited for their situation.

3. What additional specific questions or specific details would you need from the client to provide recommendations?