Ron wants to have enough life insurance on his spouse's life, so that if she died while his kids were still dependent, the remaining family would have the funds to provide a $49,000 annual income for 26 years as well as a lump sum of $280,000 to cover future education expenses for his children. Assume the insurance proceeds would get a 2.8% annual real rate of return. How much life insurance do they need on his wife to have to provide this security to his family?

Answer rating: 100% (QA)

To calculate the amount of life insurance needed well use the following formula Life Insuran... View the full answer