2. Jamie Lee and Ross need to ensure that the surviving spouse and the children will not have financial hardship in the event of a loss. Using the easy method and considering Ross’s salary in the calculation, how much life insurance will they need?Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five.

They were expecting twins until they found out the day the children were born that they were actually the parents of triplets!

Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three. What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family?

Current Financial Situation Assets (Jamie Lee and Ross combined):

Checking account, $2,500 Savings account, $16,000 Emergency fund savings account, $19,100 IRA balance, $25,000 Cars, $11,500 (Jamie Lee) and $19,000 (Ross)

Liabilities (Jamie Lee and Ross combined):

Student loan balance, $0 Credit card balance, $3,500 Car loans, $7,000 Income:

Jamie Lee, $45,000 gross income ($31,500 net income after taxes)

Ross, $73,000 gross income ($60,800 net income after taxes)

Monthly Expenses Mortgage, $1,225 Property taxes, $400 Homeowner’s insurance, $200 Utilities, $160 Food, $500 Gas/Maintenance, $275 Credit card payment, $275 Car loan payment, $289 Entertainment, $125