Insurance Plan

Insurance Section Assignment
Summer 2022

Assignment

You are to create an insurance presentation for Bill and Nancy Simpson based on the information presented in the case. The presentation is to be a maximum of 10 minutes.
Your presentation should include an analysis of their current insurance plan, a recommended insurance plan and any necessary steps to achieve the recommended plan.

The Case: Bill and Nancy Simpson

As at 31 January 2022

Personal Information
Bill and Nancy Simpson are 42 years old and 41 years old respectively and currently live in London, Ontario. They were both born in London, Ontario. They have one child, Ashley age 10, and do not have plans for more children. Ashley plans to go to school at age 18, and her parents plan to use the RESP they have set up for her to cover the cost.

Other Information
Bill is a professor at Western University and has a salary of $100,000, while Nancy is an executive at an accounting firm and also earns $100,000. Bill and Nancy have plans for retirement. They would like to retire at the same time, when Bill turns 65, with an after tax income of $70,000 per year indexed to inflation in today’s dollars.

Expenses

Bill and Nancy
Expenses
Mortgage $2,100.00
Car Loan $650.00
Ashley – Dance $500.00
Groceries and pharmacy $1,150.00
Fast food / restaurants $250.00
Property taxes $350.00
Utilities $355.00
Car insurance $285.00
Gas for cars $400.00
Clothing $100.00
Golf $200.00
Entertainment $250.00
Phone, internet, cable $225.00
Home insurance $90.00
Vacation $500
Life insurance – Bill $45.00
Savings:
RESP $250.00
RRSP for Bill $250.00
RRSP for Nancy $250.00

Insurance Information
Bill has group life insurance of 1X salary
Bill has $400,000 of 20 year term insurance
Nancy has group life insurance of 1X salary
Nancy has disability insurance that pays a 50% benefit. It is paid for by her employer.

Assumptions
Make any necessary assumptions you need to complete their insurance plan.

Bill and Nancy have not had an insurance plan completed for them. They are looking forward to meeting with you to see your presentation.

Bill Nancy
CARS 2016 Ford Explorer
$15,000 loan outstanding
Value – $22,000 2017 Ford Escape
No loan, paid in full
Value – $21,000
BANK ACCOUNTS $4,514
RESIDENCE $650,000
HOME FURNISHINGS $75,000
DEBTS
$6,400 BMO Line of Credit
Credit Limit $15,000, 19.9% interest rate
MORTGAGE $330,000 BMO Mortgage

CURRENT INVESTMENTS WITH BMO BANK OF MONTREAL
RESP (FAMILY PLAN) $7,445.24
Invested in BMO Dividend Fund
CURRENT INVESTMENTS WITH MANULIFE SECURITIES
Bill Nancy
NON-REGISTERED INVESTMENTS $19,540.01
Invested 100% in Manulife Global Equity Private Pool
TFSAs $2,350.36
Manulife Monthly High Income 10%
RBC Dividend Fund 40%
RBC Global Equity 50%
$5,750.67
Manulife Monthly High Income 100%

RRSPs $28,801.82
BMO US Equity Fund Series A 60%
BMO Asset Allocation Fund Series A 40%
$16,107.11
TD Diversified Monthly Income Fund

PENSIONS $19,977.67
Managed by pension fund manager in a balanced mandate (60% equities, 40% bonds) Defined Benefit Pension