Norm and Tanya earn about the same salary and are undertaking a life insurance needs analysis for
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Question:
Norm and Tanya earn about the same salary and are undertaking a life insurance needs analysis for one of them passing away. If the nominal projected investment return is an average of 8% per annum, inflation is projected at 3% per annum, then find the amount of additional insurance they should purchase, given the following data:
Number of years insurance money should last | 30 |
Net Worth | $34,613 |
CPP Survivor Benefit | $400 per month |
Salary | $45,000 |
Lifestyle Expenses (after mortgage) will continue at full amount | $5,000 per month additional |
Additional funds for emergency, vacation & taxes | $35,000 |
Funeral expenses | $20,000 |
Current group insurance coverage from employer | 1 x Salary |
Enter your answer rounded to 2 decimal places, and do not enter any symbols such as $, % or commas.
Related Book For
Personal Finance An Integrated Planning Approach
ISBN: 978-0136063032
8th edition
Authors: Ralph R Frasca
Posted Date: