Peter is considering his insurance needs once he opens his own business. He currently has no debt, is not married, and has no children. His current employer provides health insurance, the equivalent of one years salary for life insurance, and 70 percent of his salary for disability insurance after 90 days. Peter will need to borrow $400,000 to open his restaurant. His parents purchased a $40,000 whole life insurance policy for him when he was born.

A summary of the housemates goals can be found in the first Continuing Case problem in Chapter 1.

What type of personal insurance does Peter need and how much would you recommend he purchase? Use the Internet to get cost estimates for Peter. Give the supporting reasons for your recommendation.