DEMIO is just one way to do a quick needs analysis and help someone understand their life insurance needs. Read the information provided on Jacob and Angela and then complete the DEMIO analysis below.

Jacob is married to Angela. They have 2 children, Ryder age 11, and Jordan age 8. Jacob is an Engineer at Qualcomm earning $125,000 p/year. Angela is a school teacher currently earning $45,000 p/ year. They own a home which they still owe $450,000 on. They have combined Credit Card Debt of $12,000 and auto loans totaling $28,000. Jacob has a group policy through work for 2x his salary, and Angela has $150,000 through her teachers union.

Jacob and Angela have come to you, their trusted insurance professional to review their current life insurance program. They have recently updated their trust, and their attorney recommended a thorough review. Here is what Jacob and Angela have decided. If Jacob passes away they want the mortgage paid off, all debt paid off, and Angela will need $50,000 p/year of his income to continue until Jordan is 18. Jacob and Angela agree that they do not want to spend more than $10,000 on final expenses (funeral arrangements). If Angela passes away before Jacob, Jacob just wants the Mortgage paid off and all of the short-term debt. Using the DEMIO (Debts, Expenses, Mortgage, Income, Other monies needed) input sheet below, calculate how much additional life insurance Jacob and Angela need.

DEMIO: Angelas Life Insurance		DEMIO: Jacobs Life Insurance
Total Debt to be paid off:	$Enter Amount	Total Debt to be paid off:	$Enter Amount
Expenses:	$Enter Amount	Expenses:	$Enter Amount
Mortgage to be paid off:	$Enter Amount	Mortgage to be paid off:	$Enter Amount
Income replacement:	$Enter Amount	Income replacement:	$Enter Amount
Other monies needed:	$Enter Amount	Other monies needed:	$Enter Amount
Current Life Insurance:	-$ Subtract Amount	Current Life Insurance:	-$ Subtract Amount
Total Additional Life Insurance needed on Angelas Life:	$Enter Amount	Total Additional Life Insurance needed on Jacobs Life:	$Enter Amount

Part B: (10 pts)

Using the same DEMIO format above do a needs analysis for your family, or the family of someone you know (friend, relative, coworker, etc). The table format is not required, but can be used if it makes it easier for you. Please show your work.

DEMIO:
Total Debt to be paid off:	$Enter Amount
Expenses:	$Enter Amount
Mortgage to be paid off:	$Enter Amount
Income replacement:	$Enter Amount
Other monies needed:	$Enter Amount
Current Life Insurance:	-$ Subtract Amount
Total Additional Life Insurance needed on Angelas Life:	$Enter Amount

What did this example show you, if anything?