Insurance PlanningCoverage Review
Illustrative planning scenario — not an actual client. This example is hypothetical, created for educational purposes, and does not represent guaranteed results. Individual circumstances vary; always seek professional tax, legal and insurance advice before acting.
Client Profile
A dentist and her spouse, early 40s, with two young children, who took out life and disability insurance policies when she first started her practice a decade ago.
The Situation
Her income and the value of her practice had grown substantially, and the family’s mortgage had increased with a home upgrade. The coverage amounts from her original policies hadn’t been revisited since they were first put in place.
What They Initially Wanted to Solve
Whether their existing coverage amounts were still enough.
What Made It More Complicated
Coverage needs weren’t just about income replacement anymore. They now needed to consider future education costs, the practice’s ongoing obligations if something happened to her, and how any additional coverage should be coordinated with insurance already held inside her professional corporation.
Planning Priorities
- Recalculate income replacement needs based on current expenses, debt and family goals — not the original policy amounts
- Review whether corporately-owned insurance made sense alongside personal coverage
- Confirm critical illness coverage existed given the practice’s dependence on her ability to work
- Check whether existing policies could be adjusted rather than replaced entirely
A Coordinated Planning Approach
- Recalculated coverage needs from scratch using current income, debt and family numbers
- Compared personal vs. corporate ownership of any additional coverage, with input from her accountant
- Reviewed existing policies for riders or conversion options before shopping for new coverage
Professional Coordination
- Accountant — personal vs. corporate ownership implications
- Financial planner — needs analysis and coordination of new or adjusted coverage
Important Considerations
- Insurance coverage, pricing and eligibility are subject to underwriting and can change based on health and other factors
- This scenario is illustrative and not a quote or guarantee of coverage
Insurance reviews matter as much as the original purchase — needs shift as income, family and business circumstances change.
Related Service: Learn more about our Insurance Planning services.
