5 You and your spouse are in good health and have reasonably secure careers. You make about $76,500 annually and have opted for life insurance coverage of three times your salary through your employer. With your spouse's income, you are able to absorb ongoing living costs of $56,500 a year. You own a home with a $291,500 mortgage. Other debts include a $15,750 car loan, $7,300 student loan, and $4,150 charged to credit cards. In the event of your death, you wish to leave your family debt-free. One of your most important financial goals involves building an education fund of $103,000 to cover the costs of a four-year university program for each of your two children ages two and four. To date, you have accumulated $26,500 toward this goal in an RESP. Should you die, your beneficiaries would receive a $2,500 death benefit lump-sum payment from the Canada Pension Plan. You also have $36,500 in your company pension plan. Average funeral expenses are $13,200. Your other financial assets are as follows: Bank accounts. $ 3,250 4,150 2,150 Term deposits (3 months) TFSA High Interest Savings Stock investment account RRSPS 3,650 10,500 Use the family-need method to determine your life insurance needs. Dependents need 4 years of income as living expense. Assume that there is a desire to have a 3 month reserve based on their annual income. (Omit the "$" sign in your response.) Additional life insurance needs $ 5 You and your spouse are in good health and have reasonably secure careers. You make about $76,500 annually and have opted for life insurance coverage of three times your salary through your employer. With your spouse's income, you are able to absorb ongoing living costs of $56,500 a year. You own a home with a $291,500 mortgage. Other debts include a $15,750 car loan, $7,300 student loan, and $4,150 charged to credit cards. In the event of your death, you wish to leave your family debt-free. One of your most important financial goals involves building an education fund of $103,000 to cover the costs of a four-year university program for each of your two children ages two and four. To date, you have accumulated $26,500 toward this goal in an RESP. Should you die, your beneficiaries would receive a $2,500 death benefit lump-sum payment from the Canada Pension Plan. You also have $36,500 in your company pension plan. Average funeral expenses are $13,200. Your other financial assets are as follows: Bank accounts. $ 3,250 4,150 2,150 Term deposits (3 months) TFSA High Interest Savings Stock investment account RRSPS 3,650 10,500 Use the family-need method to determine your life insurance needs. Dependents need 4 years of income as living expense. Assume that there is a desire to have a 3 month reserve based on their annual income. (Omit the "$" sign in your response.) Additional life insurance needs $