Problem
Joshua is 45 years old and is married to Tess, who is 32 years old. They have two children, Matt (12) and Mary (14). Tess works part-time at a local shop and earns $26,000 per annum after tax, and Joshua has his own accounting business, which grosses $280,000 per annum before tax. Their current living expenses are $60,000 per annum. Other than the business, Joshua and Tess have no other income. Mary was recently diagnosed with leukaemia, and future medical expenses are estimated to be approximately $20,000 per year. The couple has only home and contents and basic hospital insurance in place.
• The clients have asked you to undertake a risk assessment for them, indicating a ranking as to which risks are most detrimental to their family's security.
• Suggest ways that Joshua and Tess might manage their risk.