Married couple Bob and Linda both age 42. Their net annual incomes are $100,000 and$120,000 respectively for Bob and Linda. Linda has an existing life insurance policy for $900,000 and feels sufficiently covered for replacing her income should she predecease Bob. They would like life insurance coverage toreplace 75% of Bob's net income for 15 years and enough to payoff mtg $600,000 and $50,000each for final expenses. They are concerned about their disability coverage since they do not have coverage through their employers. A close friend of theirs recently suffered a serious illness which resulted in them using a lot oftheir rerement savings. They would like you to recommend how much crical insurance coverage they should get.Assumpons: Return on Investments 8% Inflaon 3 Tax on investment 20.

Answer rating: 100% (QA)

To determine the appropriate amount of critical illness insurance coverage for Bob and Linda we need ... View the full answer