Question $3(20$ marks$)$

a$.$ What is 'premature death' in life insurance? Briefly describe the economic justifications for the purchase of life insurance.

$6$ marks

b$.$ Debbie, age $40,$ is a single parent with a $3-$year$-$old son. She earns $$750,000$ annually as an audit manager in an accountancy firm. As part of her salary package, Debbie's employer also provides her with a group life insurance protection in the amount of $$1,500,000.$

Debbie has determined to purchase additional life insurance so that her son will be financially protected if she suffers from premature death.

Currently, Debbie has the following financial needs for her family if she should die:

$\backslash$table$[[$Income support for her son,$$25,000$ monthly$],[$Establish an education fund for her son,$$2,500,000$