Gaston is a financial officer with an annual income of $100,000, He has 345,000 in his RRSP. Because he suffers from a serious congenital heart defect, Gaston knows that he would have to pay an extremely high premium to obtain individual life insurance. Fortunately, Gaston has convertible group ula Insurance at work equal to two times his salary This insurance allows him to respect the court order issued when he divorced requking him to hold enough life insurance to financially support his 10-year-old daughter in the event he dies, Under the order, Gaston's child support obligations are $1,500 per month until his daughter's 19th birthday If Gaston loses his job (and hence his group insurance).

What would be the most cost effective solution for him to respect the court order?

Answer rating: 100% (QA)

Given Gastons medical condition it is unlikely that he would be able to obtain individual life insurance at a reasonable cost Therefore the most coste... View the full answer