Calculate the amount of insurance you need tio purchase

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Reference no: EM131074662

Assume you are married and have two children. You want to buy sufficient life insurance to take care of your family if you die. Your wife is a homemaker but has college loan of $40000. Your children are teenagers. So you only need to provide the family wth income for the next 10 years. Your household expenses run approximately $30000. Assuming your wife can invest the insurance proceeds at 8%. Calculate the amount of insurance you need tio purchase. Apply the same method and recommend insurance amount to a member of your family. Use appropriate values based on their needs.

Reference no: EM131074662

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