by Guy Potvin, CFP, CIM

Goal

To protect survivors & dependents against catastrophic losses due to the death or disability of a family head.

Strategy

Create and implement a risk financing strategy to protect against the loss of income resulting from the premature death or disability of a family head or to provide for the liquidation of long-term debts and elimination potential tax burdens at death. Consideration will be given to capital needs, survivor income requirements, cashable resources and existing insurance policies. Proposed strategies will include hypothetical investment return rates, inflation rates, tax rates and the recommendation of suitable product and coverage amounts.

Tactics

1. Initial Interview and Data Collection: I will meet with you to collect pertinent information and to discuss your insurance goals. This will be done through a combination of face-to-face interviews and data collection questionnaires.
2. Review and Analysis: I will review and analyze all of the information that you provide to me that is relevant to this engagement.
3. Draft Plan: Based on this review, I will prepare a preliminary insurance needs analysis including recommended insurance coverage amounts designed to meet your life insurance goals. The analysis, or plan, will incorporate your stated needs and financial resources. Where appropriate, I may include goal projections or other illustrations to better demonstrate the potential outcomes of any suggested insurance coverage.
4. Review and Clarification Meeting: I will meet with you to present my draft recommendations, explore alternatives, and discuss each strategy’s potential result and required action plan. You may choose to accept my preliminary recommendations or you may request modifications. Based on your input, I will update and prepare the final plan.
5. Implementation of Final Plan: I will meet with you to present the final written copy of the plan and assist you in implementing the strategies that we have agreed upon. This will include assisting you in completing the insurer's application, coordinating the paramedical services and delivering the final insurance policy. If you have chosen to compensate me on a fee for service basis, I will then include my invoice which is due upon receipt. If you have chosen to compensate me on a commission basis, I will require you to sign your opening account applications and corresponding documents.
6. Monitoring and Updating Plan: At your request, I can meet with you to review any insurance products that you hold under my dealer advisor number. These occasional reviews are included under this Engagement. Also at your request, I can update other financial plans including projections or specific accumulation goals. These other financial plan updates are subject to a separate compensation arrangement. Note; this insurance planning program does not include analysis or strategies to protect from damage or loss of personal property, nor to protect from liability claims. A general insurance broker suited for this type of risk analysis can be referred upon request.