Second case study

Case #2: Young salesman
Annual salary: 18k
Current coverage: H&S, 95k L/TPD + 50k CI

Insights: The person who sold him the 20-yr limited payment life plan should not have done so. The premium for this policy alone was more than 10% of his annual income and the coverage is minimal.

Recommendation: Get additional L/TPD and CI coverage. In this situation, only way to achieve this would be via term plan as the existing annual premium is already more than 10% of his annual income. Client has to be advised that his annual premium is at a rather high percentage of his annual income.

After-thought:
This reminds me of this case, where a young man who passed away with only a 30k L/TPD plan and a 50k PA plan and is only eligible to claim 85k (and another 50k if the appeal for PA claim is successful).

If he had bought a term plan instead, the claim would be more able to sustain the family of this young man.

It is very sad that some insurance agents sell to clients what the clients want instead of what they need. I will keep reminding my wife to sell what is needed.