Financial Planning and Insurance Analysis Report - FIN1011

This finance report analyzes a case study involving Nikka and Brando, focusing on their financial planning needs. It begins with an assessment of their current insurance coverage, recommending life and disability insurance for Brando, including specific product suggestions from AIA and ANZ, respectively. The report then examines their motor vehicle insurance and concludes that their existing coverage is adequate. A detailed monthly budget and cash flow statement are presented, highlighting income, expenses, and surplus/deficit. The analysis covers fixed and variable expenses, including mortgage, insurance, and various household costs. The report also provides a statement analysis summarizing the financial situation and the impact of the recommendations. Overall, the assignment provides a comprehensive financial plan, addressing insurance, budgeting, and cash flow management.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note

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FINANCE
Table of Contents
Insurance Plan................................................................................................................2
Budgeting.......................................................................................................................3

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FINANCE
Insurance Plan
As per the fact sheet which is provided by you, Nikka and Brando needs to update
their respective insurance so that proper planning can be done for future. Nikka you already
have coverage from State Capital Bank which is equal to $ 72000 for a year for life insurance
while you also receive a disability insurance of 70% of the basic salary which you receive
which equals
= (72000*70%)= $ 50,400 for a yearly basis.
The fact sheet also shows that Brando does not have any form of insurance coverage
considering his present scenario. I would recommend Brando to take up insurance for life as
well as disability insurance from the perspective of future.
Brando is 47 years of age and as per the fact sheet is a non-smoker and therefore as
per average monthly cost for life insurance, Brando needs to invest $ 81.4 per $ 1000 per
month and the same is based on coverage of $ 500,000. I would be suggesting Brando that
AIA insurance product both for term insurance and life insurance should be taken. The
advantages associated with the same are listed below:
 Covers complimentary family fee or final expenses which includes benefit if your
child passes away or is diagnosed with a terminal illness. This benefit is available for
a certified age group of kids.
 Complimentary Interim Accidental Death Cover is also provided by the company for
people who passes away as their policy papers were being assessed.
In addition to this, disability insurance needs to be taken for Brando as well. He should be
investing $ 47 per $ 1000 per month and the same based on the adjusted home pay for the

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client. Assuming that the adjustment is of 70% of the home pay which is similar to Nikki
therefore the premium should be
= ($ 90,000/12* 70%
= $ 5,250
= $ (5,250/1000)* $ 47
= $ 246.5
The above computed amount of premium should be paid as monthly premium by
Brando for acquiring the disability insurance. I would be recommending ANZ product which
has a very good review in the market. The product provides monthly payment of up to 75%
of your gross income, up to $10,000 which would efficiently serve your needs in an
appropriate manner. I would recommend Nikki to stick with the current insurance plan which
is provided by State Capital Bank.
Motor Vehicle Insurance
As per the fact sheet both Nikki and Brando have their respective motor vehicle
insurance, the same is not required to be taken again. Brando has $200,000 in liability
insurance, full collision and comprehensive insurance coverage. In addition to this, the couple
also have property insurance for which $ 480 is contributed on an annual basis. This is also
appropriate from my perspective.
Budgeting
Brando and Nikki
Cash Flow Statement
Monthly Budget
Particulars Brando Nikki Joint Variance Total
Salary 7,500 6,000

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CPP 0 0
EI 0 0
Fed. & Prov. Taxes 0 0
SUB TOTAL 7,500 6,000 13,500
Expenses
Fixed Expenses
Mortgage 1,622.63
RRSP contributions 1666.6
7 450
Property taxes 183.333333
House Insurance 40
Car insurance 116.66
7
41.6666
7
Car Licensing 48
Telephone 80
Cable 100
Gym membership 110
Car lease 800
Child expenses 1750
$7,009
Variable Expenses
Food 500
Home repairs/renovations 75
Gas for cars 360 50
Car Repairs 180
Utilities 325
Cleaning service 90
Clothing 166.66
7 200
Lunches 600 120
Hai cut and grooming 30 90
Vacations 550
$3,337
TOTAL EXPENSES $10,34
6
Monthly Surplus/Deficit $3,154
Statement Analysis Summary
1. The RSVP contributions for both Nikki and Brando have increased due to their
requirements.

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2. Additional Insurance expenses has incurred by Brando which is only after the
recommendation is accepted.
3. The business is not able to save a sum of /$ 6000 on month basis for future spendinfs.