This question has three parts: a, b & c Donny and Marie are 38 and 36 respectively. They have two children: Melissa aged eight and Bobby aged six. Donny is employed full-time as an architect and earns $150,000 p.a., whilst Marie works part-time at a local nursery and earns $26,000 p.a. They built their first home valued at $1,100,000. They have a Home Loan of $900,000 at a fixed rate of 2.62%. (Repayment of $3,600 per month).Their only assets, apart from the house and car are Donny’s super of $118,000 and $13,000 in a savings account. They have been contemplating upon upgrading their 5-year-old vehicle (which has been fully settled), to a Sports Utility vehicle. Before doing so they have decided that they need to review their personal insurances. Required: a) In relation to personal insurances identify two risks relevant to Donny & Marie in the scenario provided above and suggest relevant insurance policies that they ought to take to allow for these risks. b) There are four potential risk treatments. Other than risk transfers to another party through purchase of insurance, identify and describe two other potential risk treatments. c) Should they proceed with the plan to buy the new car or should they keep their savings in the bank, pay down their home loan/ existing car loans or create an investment portfolio of Managed Funds. Justify your answer giving at least two reasons
This question has three parts: a, b & c
Donny and Marie are 38 and 36 respectively. They have two children: Melissa aged eight and Bobby aged six. Donny is employed full-time as an architect and earns $150,000 p.a., whilst Marie works part-time at a local nursery and earns $26,000 p.a. They built their first home valued at $1,100,000. They have a Home Loan of $900,000 at a fixed rate of 2.62%. (Repayment of $3,600 per month).Their only assets, apart from the house and car are Donny’s super of $118,000 and $13,000 in a savings account. They have been contemplating upon upgrading their 5-year-old vehicle (which has been fully settled), to a Sports Utility vehicle. Before doing so they have decided that they need to review their personal insurances.
Required:
a) In relation to personal insurances identify two risks relevant to Donny & Marie in the scenario provided above and suggest relevant insurance policies that they ought to take to allow for these risks.
b) There are four potential risk treatments. Other than risk transfers to another party through purchase of insurance, identify and describe two other potential risk treatments.
c) Should they proceed with the plan to buy the new car or should they keep their savings in the bank, pay down their home loan/ existing car loans or create an investment
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