Reference no: EM132852038

Girl is 32, Boy is 42. They have a kid C- 11 months old. Boy has 2 children with ex-wife (called Ex) pays monthly support and shares custody equally. As divorce settlement, Boy is required to have life insurance in the amount of $500k with ex named as the beneficiary. The policy is a term 25 policy which expires in 2043. Both boy's children are under 18 (A and B). Ex used to earn $72k gross and have employment benefits including 2x life insurance, EHC and disability. Her children are named as beneficiaries on her insurance policy. She is receiving WSIB payments and CPP - Disability income because of a workplace accident that happened last week. Boy and Ex hires private coaches for A and B to train sports that cost $20,000 a year for each child. Boy earns $250,000 gross. His company also provides him with an EHC and a defined contribution pension plan. He has private life insurance - term 20, which expires in 12 years, Girl is the beneficiary. He first purchased it when A was going to be born. The face value is $150,000. His average tax rate is 34%. Girl earns $65,000 gross. Her income expects to increase significantly next year. No benefits. Her average tax rate is 24%.Boy and Girl live in a house valued at $5m dollars. They have an outstanding mortgage of $2,150,000 on the house. They have mortgage insurance. They have comprehensive insurance coverage on the house with a deductible of $500. Girl and Boy both drive expensive cars (less than 5 years olds) but the girl only drives to grocery stores while Boy drives to work everyday and other important purposes.They have comprehensive coverage on both cars with liability of $500,000 each and a deductible of $1,500. Girl inherited an apartment in Spain that is currently rented out. Boy bought a vacation property in South America recently. He thinks it is a good investment as it is located in a tourist spot where short term rental rates are quite high. They have the following investment assets: Non-registered Joint Account - invested in various ETFs. The current value is $124,200 Girl's TFSA account value is $42,000, Boy's TFSA account value is $39,000. They are both invested in GICs and bonds. Boy has his defined contribution pension plan with his employer valued at $622,000, invested in Canadian mutual funds. Girl has an RRSP valued at $112,000 invested in international growth mutual funds. C will be babysit by his grandparents for free, no need for daycare school.

Find the assessment and recommendation for these risk: (Death of Boy, Death of Girl, Death of Ex, Disability of Boy, Disability of Girl, Boy's Car Property, Girl's Car Property, Boy's Car Liability, Girl's car liability, House-Property, House- Liability, Boy's Foreign Property, Girl's Foreign Property). Also, Identify 2 additional risks that the family faces and tell the risk assessment and recommendation.