William, a global logistics director from the US is in his mid 50's, divorced with two grown up non dependent children who also live in the States. He is now remarried a lives with his Asian wife Annie and their seven year old daughter in PRC. His wife is some years younger than him at 34 and often worries what would happen to her if anything happens to Bill. One of Bill's close friends recently suffered a heart attack and died prompting Bill to do what he had been meaning to do for some time, which was to review his existing family protection provision.
Bill has a salary in excess of 1M USD per annum and his company recognizes his worth. They have taken out key man insurance allowing them to replace Bill if he were to die in service by bringing in an executive from a competitor to match Bill's experience. Unfortunately Bill has not recognized his worth to be the same and upon review it was found that he had just USD330,000 life cover with no critical illness protection. Following his friend's death Bill no longer considers himself immortal and is keen to get adequate protection in place.
When asked the standard of living that he wanted for his wife and daughter in the event he suffered a critical illness or death he replied that they would need a similar lifestyle and income to what he currently provides. This meant that Bill was woefully underinsured and when his Consultant advised that he needed an additional USD 19million in cover he nearly fell off his chair! Only when the method of calculation of the ongoing requirement was explained to him did he accept the findings.
Like most people today, Bill was not able to afford the premiums to meet the shortfall so he settled for USD 5million Life cover and 1 million Critical Illness protection to safeguard his family's standard of living for the future.