Note that we will undertake an insurance needs analysis where the focus is on life insurance requirements

Allen and Meagan, aged 53 and 48, have 3 children, aged 11, 13 and 18. They live in their own home, which is jointly owned. The family home is currently worth $695,000, against which there is a $175,000 mortgage loan. They have contents worth $120,000. Allen works as a physiotherapist parttime and earns a $52,000 annual salary. In addition to this job, he runs a personal training business, from which he earns $45,000 annually. The business has equipment that is valued at $22,000. Allen's employer pays his superannuation guarantee payments into an industry superannuation fund, which has accumulated to $145,000. This superannuation fund provides term life cover of $230,000 for Allen. Meagan works as an audit manager at a midtier accounting firm, and earns $128,000 p.a. Currently, she has $375,000 in her superannuation account. Her superannuationbased combined term life and TPD insurance cover has a death benefit of $395,000. On average, Allen, Meagan and the family have monthly living expenses amounting to $9,950. They would like to look after their children until age 25, by which stage Allen and Meagan assume the children will become financially independent. Allen identified that previously, when Meagan was interstate for a month on a business assignment, their monthly living expenses reduced to $7,300. Allen and Meagan estimate that when each child ceases to be dependent, the amount of monthly expenses will reduce by $1,050 a month. Allen and Meagan make certain payments through a credit card, which has a balance of $18,000. Allen and Meagan believe that their local schools and universities are of good quality and so do not expect to incur additional costs for their children's educational expenses in future. Allen has a car worth $35,000, against which there is a loan of $18,000. This car is used mainly by him, with about 25 per cent of his annual driving being for business purposes. Meagan's recently acquired car is worth $80,000, against which there is a loan balance of $55,000. The family believes that if they had to reduce to one car, that Meagan's would best suit their needs. In the event of either Allen's or Meagan's death, they would like to have an emergency fund of $25,000 and to have a budget of $20,000 for funeral and associated legal expenses. They realize that Allen's personal training business would be difficult to continue if Meagan were to die, due to time commitments required for the children over the next few years and would be difficult to rebuild later. Allen is expected to live a further 31 years and Meagan is expected to live a further 39 years. If Meagan was to die unexpectedly now, what would be the: a) Total financial needs of the surviving family? b) Total financial resources available to offset the needs? c) The additional life insurance needed (if any)?