Clearwater Wealth Partners INSURANCE REVIEW SUMMARY
Wealth Management | Financial Planning | Investment Advisory Review Year: 2021 | November 9, 2021
Insurance Review Summary
Chen Household | Review Year 2021
Household Alex & Sam Chen (HH-CHEN-001)
Advisor Morgan Park, CFP® | ADV-PARK-001
Review Date November 9, 2021
Document ID DOC-InsuranceReview-2021-001
Meeting Ref MtgID-2021Q4-01
Trigger Home purchase (EventID-2021-01) — major coverage restructure
required; annual review
Alex / Sam Age 38 / 37
Children Maya (age 10), Eli (age 7)
Home Status Homeowner — 3215 Lakeview Circle, Wayzata, MN 55391 (purchased
July 2021; EventID-2021-01)
Event Refs EventID-2021-01 (Home purchase — Lakeside Mortgage Co., 30yr fixed
3.10%); DecisionID-2021-141 (down payment staging)
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.
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
Page 1
Document ID: DOC-InsuranceReview-2021-001 | 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: 2021 | November 9, 2021
SECTION I — Advisor Narrative
Purpose of This Review
The 2021 insurance review is triggered by the Chen household's most significant life event this cycle: the
purchase of their home at 3215 Lakeview Circle, Wayzata, MN 55391 in July 2021 (EventID-2021-01). This
event required immediate insurance restructuring including the addition of a homeowners policy, replacement of
the renters policy, and an umbrella limit increase. All changes were implemented at closing and are confirmed
active as of this review.
Home Purchase — Insurance Restructuring
Effective July 12, 2021, the Chen household transitioned from renters insurance to a homeowners policy (HO-3
open-peril form) with Northfield Mutual. Dwelling coverage is set at $650,000, reflecting the estimated
replacement cost of the structure (not market value, which is approximately $740,000). Personal property
coverage is $175,000 with replacement cost valuation. Liability is $500,000 within the policy, supplemented by
the umbrella. The mortgage lender, Lakeside Mortgage Co., is listed as loss payee on the homeowners policy
as required. Annual homeowners premium: $2,200.
Umbrella Policy — Increased to $2,000,000
In conjunction with the home purchase, the personal umbrella policy has been increased from $1,000,000 to
$2,000,000 in excess liability coverage. This reflects the increased asset base of the household (portfolio
assets now approximately $875,000; home equity approximately $165,000), as well as the liability exposure
associated with property ownership. Annual umbrella premium: $750.
Life Insurance — Mortgage Liability Considered
The household carries a $575,000 mortgage balance (30-year fixed at 3.10% with Lakeside Mortgage Co.).
Alex's existing $2,000,000 term policy provides substantial coverage in excess of the mortgage liability even
after income replacement. No change to face amounts is recommended at this time. Alex's estimated 2021
W-2 income is $165,000, yielding a coverage multiple of 12.1x, well within guideline. Sam's $1,500,000 policy
remains adequate.
Disability Insurance — Mortgage Stress-Test
A key planning scenario reviewed this year: in a long-term disability event, can the household maintain
mortgage payments from disability income alone? Alex's $8,000/month benefit vs. estimated monthly
mortgage P&I; of approximately $2,460 yields a debt service coverage ratio of approximately 3.3x — adequate.
However, the household's monthly fixed expenses (mortgage + utilities + childcare) of approximately $5,500
consume approximately 69% of the disability benefit, leaving limited margin. Alex's benefit increase to
$9,000/month is recommended for 2022 to rebuild margin.
Homeowners Risk Notes
The property is located in Hennepin County, Minnesota. Standard HO-3 coverage is appropriate. Flood risk is
assessed as minimal (Zone X; no FEMA NFIP required by lender). Sewer backup coverage ($25,000) has been
added as an endorsement at $75/year given Minnesota winter risk. Scheduled personal property rider for
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
Page 2
Document ID: DOC-InsuranceReview-2021-001 | 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: 2021 | November 9, 2021
jewelry ($18,000; Sam's engagement ring and heirloom pieces) added at $210/year.
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
Alex Chen $2,400 Chen Family Rev. Trust In Force
Ins. Co. 4782 Term 0
(contingent)
Alex Chen (primary);
Protective Life PLInCn2016 30-Year Level $1,500,00
Sam Chen $1,800 Chen Family Rev. Trust In Force
Ins. Co. n4783 Term 0
(contingent)
Disability Insurance Policies
Elim. Benefit Ann.
Insured Carrier Policy No. Type Benefit Status
Period Period Premium
In Force —
Alex The Standard DInJn2016n Individual increase to
$8,000/mo 90 days To age 65 $3,840
Chen Group 8821 Own-Occ. $9,000 reco
mmended
Sam Employer Group GRPnCnEM Group LTD Employer-
$4,200/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
Homeowners Northfield HOn2021n6 Dwelling $650K / Contents $175K / In Force [NEW — Jul
$2,500 $2,200
(HO-3) Mutual 102 Liability $500K + endorsements 2021]
Auto (2 Northfield AUn2016n44 250/500/100 liability;
$500 ea $3,100 Renewed
vehicles) Mutual 92 comp/collision
Personal Northfield UMn2021n6 $2,000,000 excess liability In Force [UPDATED —
— $750
Umbrella Mutual 103 [INCREASED from $1M] Jul 2021]
Estimated Total Annual Out-of-Pocket
$13,100
Premium
ADEQUATE — major restructuring completed; disability
Overall Coverage Adequacy Assessment
benefit increase recommended for 2022.
Clearwater Wealth Partners | 801 Nicollet Mall, Suite 1200, Minneapolis, MN 55402
Page 3
Document ID: DOC-InsuranceReview-2021-001 | 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: 2021 | November 9, 2021
SECTION III — Gap Analysis & Action Items
Target
Priority Coverage Area Gap / Observation Recommended Action
Timeline
Homeowners Home purchased; HO-3 policy
Closed Complete — effective July 12, 2021 Done
Policy added at closing
Umbrella Limit Umbrella increased from $1M to
Closed Complete — effective July 12, 2021 Done
Increase $2M at home purchase
Alex DI Benefit $8,000/mo benefit leaves only
Increase to $9,000/mo in 2022 to
High — Mortgage ~31% cushion over fixed Q1 2022
rebuild budget buffer
Margin expenses post-purchase
Alex DI — RSU
RSU income still excluded from Evaluate supplemental coverage as 2022–202
Medium Gap (Carried
DI benefit base RSU comp grows 3
Forward)
Policies owned individually; trust
Life Insurance Discuss ILIT feasibility with estate
Low owns no ILIT; estate inclusion 2023
Trust Ownership attorney as asset base grows
risk if above threshold
Prepared By Morgan Park, CFP® | Review Date November 9, 2021
Clearwater Wealth Partners
Reviewed With Alex & Sam Chen Meeting Reference MtgID-2021Q4-01
Event / Trigger EventID-2021-01 (Home IPS Version IPS-2020 (60/35/5);
Reference purchase — Lakeside Mortgage DecisionID-2020-044
Co., 30yr fixed 3.10%);
DecisionID-2021-141 (down
payment staging)
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
Page 4
Document ID: DOC-InsuranceReview-2021-001 | Confidential — For Client Use Only | Synthetic demo data — not investment/insurance advice
