Asked in InsuranceLife Insurance
What is the CIMER plan with regards to risk insurance?
January 16, 2008 1:20PM
The CIMER plan is a template which is used to determine the total recommended sum insured. Each letter represents an aspect of the sum insured. C Clean-Up Amount required to remove all outstanding accounts, credit cards, funeral costs etc I Income Lump sum required to provide an income to maintain the families living standards M Mortgage The amount required to discharge any mortgages E Education Determined by calculating the education costs for each child and multiplying it by the years they have left at school and/or university R Retirement What is required to fund a satisfactory retirement Once the quote has been prepared, if the client decides they can't afford the premiums, then a compromise is made by reducing the sums insured for one or more of the CIMER components.