Larry, a 40 year old salesperson, earns $90,000 per year and plans to work until age 65.
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Larry, a 40 year old salesperson, earns $90,000 per year and plans to work until age 65. He is married to Joan and has 2 children. He expects his annual salary increases to be 3%, and the inflation rate to be 3%, and their average tax bracket (state and federal) is 25%. Larry estimates that 15% of his after-tax income is used for personal consumption. Based on the Human Life Value approach to life insurance needs analysis, how much life insurance should Larry purchase?
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date: