As a girl, Pia Chowdhury loved to play with mechanical toys. She never outgrew her love of constructing 4 things, obtained a mechanical engineering degree and worked for most of her career at several 5 manufacturing facilities designing industrial robots. Then an old college friend of hers who worked for 6 NASA reached out to Pia and told her NASAs Jet Propulsion Laboratory in Pasadena, California, was 7 putting together a team of scientists and engineers to plan an unmanned mission to Mars. He thought 8 Pia would make a good addition to the team. She applied, and after 4 rounds of interviews, she got the 9 job offer and instantly accepted. Pia had to relocate across the country, and took a sizeable pay cut, but 10 there was not a doubt in her mind that this was the right career move. 11 Pias husband, Alejandro Flores, was thrilled to support her in this transition. Alejandro is a violinist and 12 a music teacher, and he thought he could give private lessons no matter what city they would live in. 13

Alejandro and Pia have two sons. Ricardo is 20 years old and a sophomore at Caltech, and Nick, 17, is 14 finishing high school. Both Nick and Ricardo have 529 accounts established for each of their benefit with 15 California College Savings Plan. Nicks account balance is $81,500 and Ricardos $73,200. Ricardos 16 tuition bills are $43,000 a year, which they have been paying from his 529 account. 17 18 Miscellaneous Family Expenses 19 Alejandro and Pia paid $27,700 in federal and state income taxes last year. Their rent is $2,700, and 20 utilities are $130 or so a month. 21 They spend $700 on groceries and $650 on eating out. Clothing budget is roughly $180 per month.

The 22 family gets health insurance through Pias job; their share of the premium is $300 a month. 23 An annual family vacation generally sets them back $2,400 or so. They save for it regularly. 24 They spend $100 on entertainment and $200 a month for miscellaneous other expenses.

Cars Pias car is worth $17,600, and Alejandros older vehicle is $13,000. They pay a combined auto insurance 28 premium of $350 a month. Gas, oil, maintenance and other associated expenses for both cars are $130 a 29 month on average. 30 Alejandro has an auto loan on his car with the current balance of $9,500. He originally borrowed 31 $13,000 at 4% interest rate for 4 years

Life insurance needs analysis for your case study (submit on paper, please):

1. Note what life insurance coverage (type and benefit amount), if any, each of the family members in your case study already has.
2. Do they have the most appropriate type of life insurance, or would another type of life insurance be more appropriate for them? Explain why. Note that this part of the assignment is only about the type of insurance, not about the amount of death benefit.
3. Calculate life insurance needs for the higher earner in the family (Chowdhury: assume the government shutdown is over and Pia is getting paid again). This analysis should include the type of life insurance and how much the person should have, if any. Use the Family Need method of calculating life insurance needs, and be very detailed and specific to your client familys particular circumstances. Do it in Excel, as edits will likely be needed after my feedback. Submit on paper at the next class, please; no need to email me the file.