Solution-Would income protection insurance be appropriate

Would income protection insurance be appropriate

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Reference no: EM132770536

Mary and John are in their mid-thirties. They have 2 children aged 7 years and 10 years. They have a mortgage of $400,000. John works as a welder in a large automotive firm earning $54,000 per annum. Mary does not work in paid employment. Both Mary and John have term life insurance policies for $600,000 each.

Questions:

1. Would income protection insurance be appropriate for John to consider? Why?

2. Would income protection insurance be appropriate for Mary to consider? Why?

3. If John had taken your advice and taken out income protection insurance, how much would he receive each month (after his waiting period had been met) if he was unable to work due to depression?

4. What types of insurance should Mary consider?

5. If cash flow is a concern for John and Mary, what strategies could you suggest to enable them to continue with their term life insurance but add income protection as well for John?

Reference no: EM132770536

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Would income protection insurance be appropriate

Reference no: EM132770536

Reference no: EM132770536

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