Allison (30) is married to Jay (37). They both plan to work until age 66. Allison earns $42,000 annually and Jay earns $104,000 annually. In case one were to die, the survivor will need $116,000 in household income. They expect inflation to be 3.2%. Given their risk tolerance, the appropriate after-tax rate of return from their investments is 9.8%.

Which of the following is the interest rate to calculate Allisons life insurance need using the human life value approach?

	6.4%
	6.6%
	3.2%
	9.8%

Which of the following is the number of periods to calculate Allisons life insurance need using the human life value approach?

	30
	36
	66
	29

Which of the following is the payment to calculate Allisons life insurance need using the human life value approach?

	12,000
	42,000
	104,000
	74,000

How much life insurance Allison must purchase for their family using the human life value approach?

	178,206
	586,230
	623,721
	167,494

How much life insurance Allison must purchase for their family using the capital retention approach?

	656,727
	187,636
	1,626,181
	1,157,090

Which of the following is the survivors income need in case Allison were to die?

	146,000
	116,000
	42,000
	12,000

Which of the following is the number of periods to calculate Allisons life insurance need using the income retention approach?

	36
	30
	29
	66