Reference no: EM133068964
The Winters family has come to you for advice on life insurance cover to protect their family. Bob Winters, aged 45, has only ever been an artist and his spouse, Sarah, aged 41, is a hairdresser. Both work full-time. They have two children: Evie, aged twelve (12), and John, aged ten (10). Bob earns $73,000 and Sarah earn $62,000 and they currently save $225 per month.
1. Assume that Bob requires $740,000 of total and permanent disability (TPD) cover. Suggest an appropriate occupational definition (that is, 'any' or 'own') for TPD. Justify your suggestion.
2. If Bob was to die, Sarah wants to provide monthly income of $5,100 to their family during the dependency period of their children until the youngest reaches age 18. However, when the youngest child has reached age 18, Sarah would then like to cover $4,250 per month for her life expectancy (age 83) to supplement her income.
Assuming an interest rate of 6% (compounded monthly), inflation at 1.5% (adjusted monthly), what is the total capital requirement needed for income for Sarah in the event of Bob's death?
ALSO, assume Sarah would like this payment to begin at the end of each month from month 1.
|
Information-gathering techniques
: your Manager on Information-Gathering Techniques. Gathering information for new system is important and sets the tone of the development cycle
|
|
Present value of future payments
: Question: You will receive equal payments of $1000 per year for each of the years 5 through 10. You will not receive any payments in Year 1 through 4.
|
|
Compute its accounts receivable turnover for year
: The following information is from the annual financial statements of Raheem Company. Compute its accounts receivable turnover for Year 2 and Year 3
|
|
Investigating systems requirements
: According to the textbook, one of the toughest problems in investigating systems requirements is ensuring that they are complete and comprehensive
|
|
Appropriate occupational definition
: The Winters family has come to you for advice on life insurance cover to protect their family. Bob Winters, aged 45, has only ever been an artist and his spouse
|
|
Social responsibility of business
: Milton Friedman has once popularly said, "The social responsibility of business is to increase its profits; here is one and only one social responsibility of bu
|
|
Social media data collection
: Identify social media data collection strategies and the legal and ethical issues associated with social media data mining.
|
|
Degree of downside risk
: POINT: Speculators should use currency futures because they can avoid a substantial premium. To the extent that they are willing to speculate, they must have co
|
|
Expected return on investment
: Problem: Your investment has a 39% chance of earning a 19% rate of return, a 25% chance of earning a 29% rate of return, and a 36% chance of losing 5%. What is
|