Prepared by Avery Gilbert

September, 2026

The Clients: Two Incomes and a Significant Protection Gap

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Our clients, Sammy and Samantha, were in their early 30s with combined employment income of approximately $157,000. They had a $513,000 mortgage, a $37,000 joint line of credit and approximately $36,000 of additional personal debt between them. Sammy had some employer benefits, including $73,000 of basic life insurance, while Samantha had no employer-sponsored coverage. They had a solid financial foundation, but their personal insurance protection hadn't kept pace with their financial responsibilities.

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Finding Their Actual Insurance Need

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We connected over a video call to discuss the importance of personal insurance and what could happen to their financial plan if one income disappeared. Rather than simply recommending an arbitrary amount of coverage, we completed a needs analysis calculator together. We entered their mortgage, personal debts and income requirements to determine what the surviving spouse would realistically need. The analysis estimated that their life insurance need was approximately $1,000,000 each.

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The couple also determined that, if one spouse passed away, they would want the surviving spouse to have approximately 50% of the deceased spouse's salary available for the next 20 years. We used a conservative 4% assumed rate of return when calculating the capital required to support that income. Importantly, we did not include their existing savings in the calculation. The goal was to avoid relying on assets that could change over time and instead establish an insurance strategy that could independently address their identified needs.

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Building a Customized Investment Strategy

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Once we established the approximate $1 million need for each spouse, we could compare that against the coverage they already had. Sammy's $73,000 employer life insurance represented only a small portion of her calculated need, while Samantha had no workplace life insurance at all. We therefore recommended $1,000,000 of personally owned Term 25 life insurance for each spouse. The 25-year term would take them through approximately ages 58 and 59, providing protection during a significant portion of their working and mortgage years.

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Sammy's $1,000,000 Term 25 policy was approximately $54 per month, while Samantha's was approximately $53 per month. Together, that provided approximately $2 million of personal life insurance protection for roughly $107 per month. The recommendation was based on their actual financial need rather than simply choosing an amount that fit within their budget. This gave the couple a clear connection between the numbers in their financial plan and the insurance they were purchasing.

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Adding a Second Safety Net: Critical Illness

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Life insurance protects against the financial impact of death, but serious illness can also disrupt a household's finances. A major diagnosis could mean time away from work, additional expenses and continued mortgage and debt payments while income is reduced. We therefore recommended $50,000 of critical illness coverage with Return of Premium on Death for each spouse. This provided a second layer of protection alongside their life insurance.

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Sammy's critical illness coverage was approximately $43 per month, while Samantha's was approximately $42 per month. The benefit could be used however they chose if a covered condition was diagnosed and the policy requirements were met. The Return of Premium feature also provided an additional benefit if the insured passed away before age 75, subject to the policy terms. Together, life insurance and critical illness coverage created two important financial safety nets.

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Why Personal Insurance Was Important

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The couple started the conversation knowing they had debt and employer benefits, but they didn't have a clear picture of how much insurance they actually needed. Through a video call and a detailed needs analysis, we were able to put numbers behind the risk. The analysis estimated approximately $1 million of life insurance was required for each spouse, based on their debts, income replacement needs and 20-year timeframe. We then built their insurance recommendations around that number.

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The final recommendation was $1,000,000 Term 25 life insurance plus $50,000 of critical illness coverage with Return of Premium on Death for each spouse. Their combined recommended monthly premium was approximately $192. Disability insurance was identified as the next area to review as part of their broader financial protection strategy. Most importantly, they now had a clear understanding of what they were protecting and why.

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The Bigger Lesson: Don't Guess Your Insurance Need

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It's easy to throw out a number like $1 million and call it a recommendation. A much better approach is to understand why that amount is needed and connect it to the client's actual financial circumstances. For this couple, the number came from their mortgage, personal debt, desired income replacement, 20-year timeframe and a conservative 4% rate of return assumption. Their existing savings were intentionally excluded so the recommendation wouldn't depend on assets they may need for other goals.

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The result was more than an insurance policy. It was a strategy designed to help protect the mortgage, replace a portion of lost income and give the surviving spouse financial flexibility if the unexpected happened. Instead of asking, "How much insurance should we buy?", the conversation became, "What would our family actually need if one of us wasn't here?" That's the value of completing a proper insurance needs analysis before recommending coverage.

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This case study is based on a real client situation. Certain details have been generalized or omitted to protect client privacy. Individual financial circumstances, investment strategies, insurance needs and retirement outcomes vary. This example is for informational purposes only and should not be considered personalized financial advice.