Death Coverage Planning with Edge - Immediate Awareness and Increasing Shortfalls
Edge Planner now includes a quick-glance feature that highlights stop income exposure over a 10-year period—from ages 26 to 65. This enhancement empowers consultants to seamlessly initiate meaningful conversations about income replacement needs, aligned with MAS guidelines on adequate death coverage.
💡 Why Ages 26–65?
This range reflects the typical working lifespan leading up to retirement at age 65. By working backward from this common retirement milestone, the tool outlines potential protection shortfalls during clients' key income-generating years.
If a prospect prefers a different timeframe, you can easily customize it using the Stop Income Scenario Age Range feature within the tool.
⚠️ Important Note on Tooltips:
The tooltip values displayed follow the data from the income projection chart. Any adjustments that affect income—such as toggling between scenarios—will also update the tooltip amounts. If needed, jot down key figures beforehand or use the reset function to revisit the scenario.
Sample Appointment Conversation Flow
During a Portfolio Review:
Consultant: "When planning for death coverage, there's a MAS guideline suggesting that individuals should aim for about 10 years of income replacement to ensure their loved ones are financially supported in the event of death.
This helps maintain the standard of living and provides a buffer for transition. Based on your current portfolio, your existing coverage is approximately $XXX, but your risk exposure—assuming you plan to work until age 65—is closer to $XXXX (refer to tooltip in Edge Planner).
This is definitely something for your awareness to ensure your protection remains aligned with your needs."
Client: "What do these age ranges like 26–35 and 36–45 represent?"
Consultant: "Great question. These are 10-year brackets that show the potential financial impact if something unexpected happens during each stage of life.
But, most people tend to benchmark their planning around the 50–65 age range—often called the ‘golden years’—because it's when multiple financial responsibilities tend to peak.
Children may be entering critical education phases, aging parents might require additional medical support, and spouse could be approaching retirement.
So, if a loss happens during this period, the financial vulnerability is often the highest, which is why we emphasize benchmarking the coverage amount during those years.
That said, planning early has its advantages too. Even if the unexpected happens earlier, your premiums are locked in while you're younger, and any excess coverage just gives your family more buffer and flexibility.”
Beyond 10x: What Else Needs Covering?
In addition to the simplified “10x annual income” rule for death coverage planning, consultants can also leverage the Recurring Expenses Scenario to more accurately determine the coverage required.
This is important because the 10x method, while useful as a baseline, may overlook key financial needs such as:
Existing liabilities and outstanding mortgages (Add on Recurring Expenses)
Outstanding debts that may quickly erode the intended coverage amount
Ongoing expenses like childcare, eldercare, or education (Add on Recurring Expenses)
Examples include recurring medical costs and caregiver expenses, which can consume a significant portion of the sum assured originally intended to sustain the family's lifestyle.
The income and assets of a spouse or partner (Set as Recurring Expenses (Monthly Income))
Losing one income may leads to losing two—because the surviving spouse might have to leave work to manage the home and care for the family.
Aspirational goals like leaving a legacy or business continuity (Conversational Add-On)
Personal aspirations—whether for the surviving dependents or the individual—should ideally be planned for separately to avoid diluting the primary purpose of the sum assured. Examples include charitable goals or providing startup capital for dependents to launch a business.”
Sample Appointment Conversation Flow - Continued
Consultant: "Also, beyond maintaining your family's standard of living, there are three important areas I'd like you to consider as well:"
"First, have you accounted for your existing liabilities—like your mortgage or personal loans? These can quickly reduce the effectiveness of your coverage if not factored in."
"Second, are there any ongoing expenses you’re currently supporting—such as medical costs for your parents or other recurring obligations? These can put additional pressure on the payout amount."
"And finally, think about situations where your spouse might need to stop working to take on caregiving duties. That could turn the loss of one income into two. Also, are there any personal goals you'd like to plan for—like contributing to a charity or helping your children starting a business?"
“Understanding these areas will really help me tailor a solution that aligns with your priorities and offers your family the protection they need."
These added scenarios serve to highlight factors that could significantly increase the coverage shortfall—enabling consultants to present a more compelling and personalized plan that resonates emotionally with the prospect.
For example, a client may wish to provide an allowance for their parents for the next 15 years based on the current support amount. Additionally, an extra $500,000 buffer could be factored in to account for potential income loss if their partner has to stop working.
By including these emotionally relevant considerations, the total shortfall could increase from the baseline 10x income estimate (e.g. $XXXX) to a more comprehensive figure (e.g. $XXXX) that reflects their full personal and family needs.
While the real-life application may not always follow a perfect flow, the key lies in understanding the concept and adapting it to fit each consultant’s personal style.
By doing so, the idea of a larger coverage shortfall becomes far more impactful—helping prospects emotionally connect with the need for greater protection, and in turn, a bigger case size planning.
