Clearwater Wealth Partners INSURANCE REVIEW SUMMARY
Wealth Management | Financial Planning | Investment Advisory Review Year: 2019 | November 18, 2019
Insurance Review Summary
Chen Household | Review Year 2019
Household Alex & Sam Chen (HH-CHEN-001)
Advisor Morgan Park, CFP® | ADV-PARK-001
Review Date November 18, 2019
Document ID DOC-InsuranceReview-2019-001
Meeting Ref MtgID-2019Q4-01
Trigger Revocable trust formation (EventID-2019-01); Alex income increase
post-promotion (EventID-2018-01); annual review
Alex / Sam Age 36 / 35
Children Maya (age 8), Eli (age 5)
Home Status Renting — actively evaluating home purchase (GoalID-2016-03)
Event Refs EventID-2018-01 (Alex promotion + RSUs), EventID-2019-01 (Trust
created — DOC-Trust-2019-001)
Coverage at a Glance
Coverage Type Key Details Primary Carrier
Life Insurance Alex $2,000,000 | Sam $1,500,000 Protective Life Ins. Co.
Disability Insurance Alex individual own-occ | Sam group LTD The Standard Group / Employer
Homeowners / Renters Active — see Section II for dwelling amounts Northfield Mutual
Auto Insurance Two vehicles, 250/500/100 liability + comp/collision Northfield Mutual
Umbrella Liability Excess liability — see Section II for limit Northfield Mutual
This document is organized in three sections: (I) Advisor Narrative — planning context and observations; (II)
Coverage Inventory — policy-level data tables; (III) Gap Analysis — open action items and recommendations.
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Document ID: DOC-InsuranceReview-2019-001 | Confidential — For Client Use Only | Synthetic demo data — not investment/insurance advice

Clearwater Wealth Partners INSURANCE REVIEW SUMMARY
Wealth Management | Financial Planning | Investment Advisory Review Year: 2019 | November 18, 2019
SECTION I — Advisor Narrative
Purpose of This Review
This 2019 insurance review is elevated in scope due to two significant household developments: (1) Alex's
2018 promotion to senior software product leader, which materially increased base salary and introduced a new
equity compensation component (RSU vesting beginning 2018), and (2) the establishment of the Chen Family
Revocable Trust (DOC-Trust-2019-001, attorney Logan Hart, JD / Westfield & Baker LLP). Both changes
require policy updates.
Life Insurance — Updated for Trust & Income Growth
Following trust formation, beneficiary designations on both term life policies have been updated. The Chen
Family Revocable Trust is now named as contingent beneficiary on both policies, ensuring proceeds flow
through the estate plan if both spouses predecease each other. No change to face amounts is required at this
time: Alex's $2,000,000 coverage equates to approximately 12.9x his 2019 estimated W-2 income of
$155,000, remaining within the 10–20x guideline range. Sam's $1,500,000 coverage represents
approximately 18.8x her 2019 income of $80,000.
Alex Disability Insurance — Benefit Increase
In response to Alex's 2018 promotion and associated income growth (estimated 2019 W-2: $155,000
including RSU component), the monthly disability benefit under policy DI-J-2016-8821 has been increased from
$6,500 to $8,000 per month. The new benefit represents approximately 62% of gross monthly income,
consistent with own-occupation policy maximums for Alex's occupation class. The policy term, elimination
period, and benefit period remain unchanged. Total premium increases to $3,840/year.
RSU Concentration & Disability Interaction
As Alex's equity comp grows, it is important to note that RSU income is generally not included in disability
insurance benefit calculations (which are tied to base W-2 salary). Morgan Park has flagged this structural
gap: in a disability scenario, Alex would forgo both RSU vesting and future grants, creating a potential
income shortfall beyond the $8,000/month benefit. The household should consider supplemental business
overhead or equity income replacement coverage as RSU values grow materially in future years.
Property & Casualty — Home Purchase Staging
The household remains a renter. Renters and auto policies are renewed without material change. Umbrella
coverage remains at $1,000,000. Morgan Park has flagged that a home purchase — expected within the 2021
timeframe (GoalID-2016-03) — will require immediate addition of a homeowners policy and an umbrella limit
review to at least $2,000,000. A prefill application package has been prepared with Northfield Mutual for staging
when a purchase address is confirmed.
Key Recommendations
Four items are tracked: (1) beneficiary updates to trust are confirmed complete on both Protective Life policies
(TaskID-2019Q2-001 closed); (2) Alex's disability benefit increased to $8,000/month effective December
2019; (3) RSU disability income gap noted and deferred to annual review pending RSU growth; and (4)
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
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Document ID: DOC-InsuranceReview-2019-001 | Confidential — For Client Use Only | Synthetic demo data — not investment/insurance advice

Clearwater Wealth Partners INSURANCE REVIEW SUMMARY
Wealth Management | Financial Planning | Investment Advisory Review Year: 2019 | November 18, 2019
homeowners staging prepared for anticipated 2021 home purchase.
SECTION II — Coverage Inventory
Life Insurance Policies
Face Ann.
Insured Carrier Policy No. Type Beneficiary Status
Amount Premium
Sam Chen (primary);
Protective Life PLInJn2016n 30-Year Level $2,000,00 Chen Family Rev. Trust
Alex Chen $2,400 In Force
Ins. Co. 4782 Term 0 (contingent) [UPDATED
2019]
Alex Chen (primary);
Protective Life PLInCn2016 30-Year Level $1,500,00 Chen Family Rev. Trust
Sam Chen $1,800 In Force
Ins. Co. n4783 Term 0 (contingent) [UPDATED
2019]
Disability Insurance Policies
Elim. Benefit Ann.
Insured Carrier Policy No. Type Benefit Status
Period Period Premium
$8,000/mo [I
Alex The Standard DInJn2016n Individual
NCREASED 90 days To age 65 $3,840 In Force
Chen Group 8821 Own-Occ.
]
Sam Employer Group GRPnCnEM Group LTD Employer-
$4,050/mo 90 days To age 65 Active
Chen LTD PLOYER (60%) paid
Property, Casualty & Liability Policies
Deducti Ann. Pre
Policy Type Carrier Policy No. Coverage Summary Status
ble mium
Renters Northfield HOn2016n4 Personal property $150K / Liability
$500 $720 Renewed
Insurance Mutual 491 $500K
Auto (2 Northfield AUn2016n44 250/500/100 liability;
$500 ea $2,950 Renewed
vehicles) Mutual 92 comp/collision
Personal Northfield UMn2016n4
$1,000,000 excess liability — $450 Renewed
Umbrella Mutual 493
Estimated Total Annual Out-of-Pocket
$9,960
Premium
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
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Document ID: DOC-InsuranceReview-2019-001 | Confidential — For Client Use Only | Synthetic demo data — not investment/insurance advice

Clearwater Wealth Partners INSURANCE REVIEW SUMMARY
Wealth Management | Financial Planning | Investment Advisory Review Year: 2019 | November 18, 2019
ADEQUATE — material improvements completed this
Overall Coverage Adequacy Assessment
cycle; two medium-priority items open.
SECTION III — Gap Analysis & Action Items
Target
Priority Coverage Area Gap / Observation Recommended Action
Timeline
Beneficiary Trust now named as contingent Complete — TaskID-2019Q2-001
Closed Done
Designations on both life policies closed
RSU income (~$25K/yr) Evaluate equity income replacement
Alex Disability 2021–202
Medium excluded from DI benefit rider or supplemental coverage in
— RSU Gap 2
calculation 2021+
Current $1M umbrella adequate
Umbrella Limit — Increase umbrella to $2M at time of At
Medium for renter; home purchase
Pre-Purchase home purchase purchase
requires $2M
Sam Group LTD not portable; income Revisit individual policy if employment
Low Ongoing
Supplemental DI growing situation changes
Prepared By Morgan Park, CFP® | Review Date November 18, 2019
Clearwater Wealth Partners
Reviewed With Alex & Sam Chen Meeting Reference MtgID-2019Q4-01
Event / Trigger EventID-2018-01 (Alex IPS Version IPS-2016 (70/28/2)
Reference promotion + RSUs),
EventID-2019-01 (Trust created
— DOC-Trust-2019-001)
IMPORTANT DISCLOSURES: This Insurance Review Summary is prepared by Clearwater Wealth Partners solely for the use of the Chen household
and is intended as a planning reference document. It does not constitute an insurance contract, policy illustration, or binding recommendation.
Coverage descriptions are summaries only; full policy terms govern. All data is synthetic and for demonstration purposes only. Clearwater Wealth
Partners is a registered investment adviser and does not sell insurance products; insurance placements are facilitated in coordination with licensed
insurance specialists. Clients should consult their licensed insurance professional and review all policy documents in full before making coverage
decisions. Past premium or coverage data presented does not guarantee future availability or pricing.
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
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Document ID: DOC-InsuranceReview-2019-001 | Confidential — For Client Use Only | Synthetic demo data — not investment/insurance advice
