Planit:Life Insurance Calculator Exercise Answer Key

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Canada English

Contents 1 Question One: 1.1 Answer: 2 Question Two: 2.1 Answer: 3 Question One: 3.1 Answer: 4 Question Two: 4.1 Answer: 5 Question One: 5.1 Answer: 6 Question Two: 6.1 Answer: 7 Question One: 7.1 Answer: 8 Question Two: 8.1 Answer: 9 Question One: 9.1 Answer: 10 Question Two: 10.1 Answer: 11 Question One: 11.1 Answer: 12 Question Two: 12.1 Answer: 13 Question One: 13.1 Answer: 14 Question Two: 14.1 Answer: 15 Question One: 15.1 Answer: 16 Question Two: 16.1 Answer: 17 Question One: 17.1 Answer: 18 Question Two: 18.1 Answer: 19 Question One: 19.1 Answer: 20 Question Two: 20.1 Answer: 21 Question One: 21.1 Answer: 22 Question Two: 22.1 Answer: 23 Question One: 23.1 Answer: 24 Question Two: 24.1 Answer: 25 Question One: 25.1 Answer: 26 Question Two: 26.1 Answer: 27 Question One: 27.1 Answer: 28 Question Two: 28.1 Answer: 29 Question One: 29.1 Answer: 30 Question Two: 30.1 Answer: 31 Question One: 31.1 Answer: 32 Question Two: 32.1 Answer: 33 Question One: 33.1 Answer: 34 Question Two: 34.1 Answer: Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

United States of America

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Argentina

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Brazil

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

United Kingdom

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified £15,000 in funeral expenses and another £20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for £15,000, and another £20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of £35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: £15,000 for funeral expenses, as well as moving expenses of about £50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of £15,000 for a funeral and £50,000 for moving. This totals £65,000, so set the Lump Sum Costs field to £65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Russia

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified R15,000 in funeral expenses and another R20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for R15,000, and another R20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of R35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: R15,000 for funeral expenses, as well as moving expenses of about R50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of R15,000 for a funeral and R50,000 for moving. This totals R65,000, so set the Lump Sum Costs field to R65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

China

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified ¥15,000 in funeral expenses and another ¥20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for ¥15,000, and another ¥20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of ¥35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: ¥15,000 for funeral expenses, as well as moving expenses of about ¥50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of ¥15,000 for a funeral and ¥50,000 for moving. This totals ¥65,000, so set the Lump Sum Costs field to ¥65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Malaysia

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified RM15,000 in funeral expenses and another RM20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for RM15,000, and another RM20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of RM35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: RM15,000 for funeral expenses, as well as moving expenses of about RM50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of RM15,000 for a funeral and RM50,000 for moving. This totals RM65,000, so set the Lump Sum Costs field to RM65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Singapore

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Hong Kong

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

India

Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified Rs15,000 in funeral expenses and another Rs20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for Rs15,000, and another Rs20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of Rs35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: Rs15,000 for funeral expenses, as well as moving expenses of about Rs50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of Rs15,000 for a funeral and Rs50,000 for moving. This totals Rs65,000, so set the Lump Sum Costs field to Rs65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.

Caribbean

Jamaica   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $150000 in funeral expenses and another $200000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $150000, and another $200000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $350000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $150000 for funeral expenses, as well as moving expenses of about $500000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $150000 for a funeral and $500000 for moving. This totals $650000, so set the Lump Sum Costs field to $650000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen. Trinidad and Tobago   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen. Barbados   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen. Bermuda   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen. Bahamas   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen. Puerto Rico   Question One: Your retired clients, the Blacks, want to know the probable costs to replace 20% of Walter’s income, until his age 64, in the event of his death. When asked what lump sum costs they may expect, they identified $15,000 in funeral expenses and another $20,000 in unforeseeable costs. Answer: Select a set of retired clients from the Client Search page, for which you have already completed the Life Planning process flow. In order to upload as much completed information as possible to the calculator, click the drop-down menu beside Scenario and choose the client’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 20% as they indicated. The Replace Income to Age should be set to age 64. The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. They wanted to include the immediate expense of the funeral for $15,000, and another $20,000 for unforeseeable expenses, so set the Lump Sum Costs field to the total of $35,000. The Blacks did not identify any other Revenues per Year, so this can remain at zero. Click Calculate at the bottom of the screen. Click Save once the results have populated to save the scenario. Question Two: Your client feels that in the event of his wife’s death he would only need to replace 40% of her income, for a period of 5 years, since they are without children. However, he felt he would have significant lump sums costs that he wanted to plan for including: $15,000 for funeral expenses, as well as moving expenses of about $50,000 since he would want to move closer to his family. How much capital does he require at an after-tax rate of return of: 4.0%? 5.0%? 6.0%? Answer: Select a set of clients from the Client Search page, for which you have already completed the Life Planning process flow. Set the drop-down menu option under Calculators to Life Insurance Calculator. In order to upload as much completed information as possible to the calculator, click the drop- down menu beside Scenario and choose the wife’s Death. Immediately, the following fields will have changed from default values, to data already entered on other screens: Current Age, Current Earned Income, Replace Income to Age, Inflation, Current Insurance Coverage and Lump Sum Benefits. However, there is still some data entry to be completed: The Percentage to Replace Salary field should be set to 40% as the husband indicated. The Replace Income to Age should be set to be the age 5 years from the wife’s current age The After Tax Rate of Return is defaulted to the client’s inflation assumption plus 2.0%. But since we want to know the shortfall at 4.0%, 5.0% and 6.0%, we will set this field to the midway value of a 5.0% after-tax rate of return. The husband wanted to include the immediate expenses of $15,000 for a funeral and $50,000 for moving. This totals $65,000, so set the Lump Sum Costs field to $65,000. They did not identify any other Revenues per Year, so this can remain at $0. Click Calculate at the bottom of the screen.