Steven and Sally Smith are spouse and they have two children, Jamila aged 15 and Nic aged 12, both of whom will be dependent until age 18. Steven and Sally are not sure what would be the cost of educating the children until age 18, the year annual school fees for each of the children are $17,000.

Steven earns $160,000 gross per annum from the business. Sally is a full-time homemaker and has not worked since having their first child and she is unlikely to return to paid work.Steven currently has a balance of $160,000 in his superannuation while Sally does not have any superannuation. The Smiths' have credit cards with an average monthly debt of $8,000 (which they clear each month) and an upcoming tax liability of $18,000.

Sally advises that should Steven die or become permanently disabled prior to retirement, she would still need an income of $8,000 per month indefinitely. They would also like to leave their children at least $80,000 each should Steven die before their children reach the age of 18.

Question :

if steven die, what is cost item should sally considered and what is income item for her?

Answer rating: 100% (QA)

Cost Items for Sally if Steven Dies Immediate Expenses Funeral costs Estimate the possible cost of f... View the full answer