For the following needs analysis case, answer the accompaying questions by filling in the blanks Bellamy and Clarke are a very successful couple in their mid-30's. Bellamy is a security consultant and Clarke is the senior vice-president of marketing for an medical supplies company. They call you to discuss and advise on

their insurance needs.

Bellamy's income (last calendar year) $84,000

Clarke's income (last calendar year) $83,000

Investments (current rate of interest 6.3%) $608,000

RRSP's $341,000

Real Estate $1.23 Million

Cash $14,700

Mortgage $287,000

Line of Credit (loan) $225,000

Credit Cards $0

Personal loans (cars, etc.) $113,000

Investment Rate 6.30%

Taxes on income 20%

Inflation 2%

1. How much insurance does Clarke need using the capitalization of income approach for 20 years?

Hint: Just based on replacing income (PMT) and using the depletion method

How much would be required to pay the last or final expenses of Bellamy or Clarke?

If Bellamy was to acquire a disability policy with a 60% benefit, what would the monthly disability income benefit be?