Mary and Troy are married and recently retired at the age of 55. They saved diligently...
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Mary and Troy are married and recently retired at the age of 55. They saved diligently for their entire lives and made some wise investment decisions. They have built up a sizeable amount in their RRSPs, which should be more than sufficient to fund their retirement. Upon the death of the first spouse, their RRSP balance would be rolled over to the surviving spouse. Upon death of the second spouse, they would like to leave the remaining balance split up amongst their adult children in equal proportions. What life insurance strategy would you recommend Mary and Troy utilize in order to cover the income taxes that would be owed on the RRSP balance upon death? a) A term life insurance policy on Mary's and Troy's lives, naming all of their living children as beneficiaries. b) A joint last-to-die permanent life insurance policy with Troy and Mary as the life-insured and the children as beneficiaries c) A joint first-to-die permanent life insurance policy with Troy and Mary as the surviving spouse as beneficiary Mary and Troy are married and recently retired at the age of 55. They saved diligently for their entire lives and made some wise investment decisions. They have built up a sizeable amount in their RRSPs, which should be more than sufficient to fund their retirement. Upon the death of the first spouse, their RRSP balance would be rolled over to the surviving spouse. Upon death of the second spouse, they would like to leave the remaining balance split up amongst their adult children in equal proportions. What life insurance strategy would you recommend Mary and Troy utilize in order to cover the income taxes that would be owed on the RRSP balance upon death? a) A term life insurance policy on Mary's and Troy's lives, naming all of their living children as beneficiaries. b) A joint last-to-die permanent life insurance policy with Troy and Mary as the life-insured and the children as beneficiaries c) A joint first-to-die permanent life insurance policy with Troy and Mary as the surviving spouse as beneficiary
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