INSURANCE & RISK MANAGEMENT

Insurance Risk & Assessment - Assignment One

Contained herein, in line with the university learning guide for insurance and risk management's assessment one, is the Statement of Assessment for Mr. Simon Wilson & Mrs. Sharon Wilson.

INSURANCE ASSESSMENT: Mr. & Mrs. Wilson

With the provision of any financial consultancy made for your benefit, you are entitled to receive a Statement of Advice which contains the best financial options for you to choose in line with your objectives, risk profile, financial position and fiscal needs.

The Statement of Advice (henceforth “SoA”) is the documentation of all financial advice granted to you and includes information pertaining to the basis of consideration for the advice, your financial position which would include your income and its sources, family details, and any other information which gave shape to the conclusion of the advice.

Considerations Made For Advice

You, Mr. Simon Wilson, are aged 53, and your wife, Mrs. Sharon Wilson, is aged 39. You are both non-smokers with no stated health issues that need to be considered. You have three children: Taylor, who is seven years of age, Abbey, who is aged nine, and the eldest being Paul at the age of 11. There has also been no record of any high risk activities from your end.

Your key goals identified include securing an income for your family, thus having a contingency plan in place in case of the demise of either spouse; and being able to provide for your children's education, for which you have ascertained cost at $90,000. In addition, you have held life insurance in order to cover for your untimely death, for which you would consider immediate costs (funeral etc), repayment of loans and mortgages, and an income cover to pay for your family.

Client Name:

 

Mr. & Mrs. Wilson

Source

Total remuneration

Status

Business (Mr. Smith): Air-conditioning

$280,000 per year

Full-Time

Particulars

Value

Liability

Comments

Property: Home

$ 550,000 $ 200,000

No insurance details provided

Credit Cards & Personal Loans

$ - $ 25,000

No interest information available

Superannuation ? ?

Self-financed

Your Current Insurance Policies

As stated with your information, we have concluded your life insurance policies, superannuation, and other insurance information and have outlined it in the table below

Policy Type

Insuree

Type of Cover

Level of Cover

Self-Funded superannuation

Simon & Sharon Wilson (or Either)

Pension Plan

Details Not Provided

Life Insurance

Simon Wilson

Life Cover

$250,000

Reasons for Considering Additional Insurance Cover

Everyone has a different outlook towards life, career, and family, thus, everyone has a different take on their needs and goals. However, no one can deny the importance of protecting oneself and their dependents from the effects of any unforeseen events. The possibility of an untimely death, accidents leading to long-term disability, or adverse eventualities which may affect your property can have a long term implication. These adversities could negatively impact your household income, property, or possibly the future of your family.

It is stated that you do hold life cover at $250,000 for yourself. However, your wife currently does not hold a life insurance policy in her name. Your wife had been a teacher for eight years, although it is not stated that she is still continuing the ...