Personalized Needs Analysis

Transcription

1 Personalized Needs Analysis 1

2 Personalized Needs Analysis For: Name male female Spouse Children Phone Number home: Work Cell Birthdate: Smoker Non-smoker Occupation: Duties: Monthly salary after expenses and before taxes $ 1. How did you make your money? 2. Tell me about your best and worst experience with an advisor? 3. Who do you care about the most? 4. What would your worst nightmare be for your family? 5. Who do you rely on for Financial Advice? 6. How involved do you want to be in Financial Decisions? 7. How much money do you currently need to stop worrying about your current finances? 8. If you could write a cheque today to leave behind to your family how much would that be for? 2

3 CLIENT CONTACT RECORD Date Type of Contact Topic Result To do Done (Ph, V/M, E/M, Fax (date) Letter, F2F) 3

4 Explanatory Notes 1) Mortgages Enter the total amount of outstanding mortgage(s) balance of your family. If you are planning on moving to a bigger dwelling use the new amount estimated. The amount here represents the portion of the death proceeds required by you. 2) Loans Enter the total amount of outstanding loan balances that you would like to pay off in the event of death. Try to include all types e.g. car, credit card, line of credit, home improvement, debt consolidation loans etc. 3) Final Expenses Enter the estimate final expenses including burial, probate, executor fees, uninsured final medical costs. Example: $10,000 for funeral and 2% for probate fees. 4) Income Needs for survivor To work out the estimated needs for your survivor in the event of your death, it is suggested that you: - multiply your current annual gross income by a percentage, usually by 70% - estimate the number of years for income protection - locate a time valued factor from the table below based on an assumed interest rate (discounted by inflation) against the number of years of income protection required - then calculate the value by Gross Income X Income % X Time-valued factor = the amount in B(4) Example: Current gross income = $71,000 % of income require by survivor = 70% Number of years = 25 Interest discounting inflation = 4% $71,000 x 70% x = $781,110 (rounded) Years 3% 4% 5% 6% 7% 8$ ) Emergency Fund Enter an amount equal to 6 months of you gross income if you do not have a specific number in mind. 6) Child-care Expenses Enter the amount of child-care expenses that would sustain the upbringing of your child(ren) to an age when they no longer require care 7) Education fund Enter the estimated education fund for all of your children. Estimate cost of university/college at $5000/year per child if living at home. If living away estimate $12,000 per year 8) Cash and Savings Enter the amount of cash and savings on hand. 9) Stocks and Bonds Enter the estimate value of your monetary investments if you decide to sell them in the event of death to meet your financial needs. Your required life insurance amount will be reduced by this amount. 10) Real Estate Enter the estimated value of your real estate investments if you decide to sell them in the event of death to meet your financial needs. Your required life insurance amount will be reduced by this amount. 11) Business or Farm Assets Enter the amount of business or farm assets if you decide to sell them in the event of death to meet your financial needs. Your required life insurance amount will be reduced by this amount. 12) Insured Mortgages and Loan Balances Enter the total amount of mortgages and loans that are currently insured, meaning that the insured amount will be paid off by the insurance proceeds at time of death. 13) Enter the total amount of life insurance benefit that you have currently including personal, group, etc. 14) Other death benefits Enter the lump sum death benefit you have from any pension plan, CPP or QPP

5 Life Insurance Needs Calculation A + B C = Your Life Insurance Needs A) Identify your current debts and financial needs 1) Mortgage(s) 1 $ 2) Loans (auto, credit cards, personal, line of credit etc.) 2 $ 3) Final expenses (probate, executor fees, funeral, etc.) 3 $ Total $ (+A) B) Determine your future financial needs 4) Income needs for your survivors Your current income The % of your income your survivor needs (i.e. 70%) The amount of future annual income needed by your survivor (see explanatory note 4) The number of years of income protection Assumed rate of inflation % Assumed interest rate discounted by inflation Assumed time-valued factor $ $ % = $ x =$ 4 $ 5) Emergency Fund 5 $ 6) Child-care expenses 6 $ 7) Education fund 7 $ Total $ (+B) C) Deduct your assets and financial resources 8) Cash and savings $ 9) Stocks, bonds and funds $ 10) Real estate $ 11) Business or farm assets $ 12) Insured mortgages and loan balances $ 13) Total Life Insurance (personal, group and other) $ 14) Other death benefits (pension plan, CPP, QPP) $ Total $ (-C) 5

6 Critical Illness Insurance Needs Calculation (6 months expenses) Outstanding Mortgage $ Credit Card, Line of Credit, Car Payment $ RRSP Contribution $ RESP Contributions $ Income Replacement $ Spousal Income Replacement $ Childcare $ Home care, nursing, housekeeping, etc. $ Home modification (if required) $ Medications not covered by OHIP $ Alternative medications/treatments $ Other $ Total $ Current Coverage (B) Individual $ Group $ Association $ Total $ Shortfall (A-B) $ 6

7 Disability Insurance Needs Calculation Monthly Expenses (A) Mortgage or rent $ Food $ Utilities $ Auto Expenses $ Insurance Premiums (home, auto etc.) $ Clothing $ RRSP s $ RESP s $ Other $ Total $ Current Monthly Coverage (B) Individual $ Group $ Association $ Total $ Shortfall (A-B) $ 7

8 Acknowledgement of Declined or Adjusted Coverage I acknowledge that of The Insurance Supermarket has prepared and reviewed a financial plan which explains the need for the following additional insurance protection. While I understand the recommended amount, it is my decision to decline or adjust the recommended insurance protection at this time as follows: Life Insurance Critical Illness Insurance Disability Income Insurance Long Term Care Insurance I understand that the values illustrated in this insurance analysis are based on financial information that I have provided and my understanding of my future financial needs in the event of my death, critical illness or disability. The illustrated insurance coverage is subject to medical and financial underwriting. It is strictly for reference and I may decide to take out a Life/Critical Illness/Disability Insurance policy(ies) with a coverage amount different from the one illustrated in this analysis. My insurance coverage has to be reviewed on a regular basis to ensure that my financial goals and objectives continue to be met. Name Signature Date Broker 8