Twenty years have passed since you first spoke with Ashwani and Nina about motor vehicle insurance. They were happy with the advice you gave - it was all very clear and understandable and they could make reasoned decisions.

Now they come asking what they should do as it respects life insurance. Ashwani is now 55 years of age and Nine is 50. Both continue to eat healthfully, exercise and moderate their lives against excesses. Neither ever took up smoking, and in fact recently Nina decided to become a vegetarian like her husband, They still cook meat and fish for their boys when the family gathers around for holidays. Both would be rated 'standard' by life insurance companies.

Ashwani has only ever purchased term life insurance for himself and Nina, and now he realizes that this decision may not have been the best choice. Both he and she still work: he earns $130 000 annually after expenses, and Nina earns $155 000 after expenses. The accompanying excel sheet details their total net worth.

Net Worth statement
effective 1 january 2023					Ashwani		Nina		total
assets
liquid assets
	joint chequing account				$ 3,000.00		$ 8,000.00		$ 3,500.00
	cash				$ 15,000.00		$ 8,000.00		$ 23,000.00
total liquid assets					$ 18,000.00		$ 16,000.00		$ 26,500.00
Invested Assets
	registered
		rrsp			$ 7,50,000.00		$ 8,20,000.00		$ 15,70,000.00
		tfsa			$ 4,50,000.00		$ 4,30,000.00		$ 8,80,000.00
	non registered				$ -		$ 50,000.00		$ 50,000.00
total invested assets					$ 12,00,000.00		$ 13,00,000.00		$ 25,00,000.00
personal use assets
	residence (owned jointly)				$ 5,50,000.00		$ 5,50,000.00		$ 11,00,000.00
	autombile				$ 57,000.00		$ 76,000.00		$ 1,33,000.00
	personal effects (owned jointly)				$ 1,20,000.00		$ 80,000.00		$ 2,00,000.00
total personal assets					$ 7,27,000.00		$ 7,06,000.00		$ 14,33,000.00
total assets					$ 19,45,000.00		$ 20,22,000.00		$ 39,59,500.00
Liabilities
Short term Liabilties
	visa cards				$ 750.00		$ 750.00		$ 1,500.00
Long Term liabilities
	car				$ 12,000.00		$ 18,000.00		$ 30,000.00
	Mortgage (held jointly)				$ 1,50,000.00		$ 1,50,000.00		$ 3,00,000.00
total liabilities					$ 1,62,750.00		$ 1,68,750.00		$ 3,31,500.00
Net worth					$ 17,82,250.00		$ 18,53,250.00		$ 36,28,000.00

income			monthly		annually
	ashwani		?		?
	nina		?		?
total income		?		?
expenses
taxes
	ashwani		?		?	use the federal and provincial tax rates to estimate tax effect on income
	nina		?		?
home maintenance		$ 700.00		$ 8,400.00
home insurance		$ 300.00		$ 3,600.00
utitlties			$ 300.00		$ 3,600.00
property taxes		$ 225.00		$ 2,700.00
auto					$ -
	insurance	$ 200.00		$ 2,400.00
	operating costs	$ 300.00		$ 3,600.00
	repairs, maintenance	$ 175.00		$ 2,100.00
					$ -
Life insiurance premiums			$ -
	ashwani		$ 200.00		$ 2,400.00
	nina		$ 200.00		$ 2,400.00
					$ -
telephone, internet, etc	$ 200.00		$ 2,400.00
food			$ 300.00		$ 3,600.00
clothing			$ 100.00		$ 1,200.00
personal care		$ 220.00		$ 2,640.00
entertainment		$ 100.00		$ 1,200.00
total surplus/deficit		?		?

Detail for them why they might well consider converting to permanent insurance. Describe the options available to them. What type of permanent insurance would you recommend and why? Explain to them how permanent insurance might contribute to their financial retirement plans.

YOUR TASK:

Using templates provided as a guide, and relying on course textbook and instruction, detail for Ashwani and Nina why they might well consider converting to permanent insurance. Describe the options available to them. What type of permanent insurance would you recommend and why? Explain to them how permanent insurance might contribute to their financial retirement plans