Calculating life insurance needs for a couple with a child

How Much Life Insurance Does a Family Need?

Sharon and Jacob Klein are $52$ years old and have one son, age $14.$ Sharon is the primary earner, making $$80,000$ per year. Jacob does not currently work. The Kleins have decided to use the needs$-$based approach to calculate the value of a life insurance policy that would provide for Jacob and their son in the event of Sharon's death.

The Kleins' Needs

$\backslash$table$[[$Final expenses,They estimate that final expenses $($such as funeral costs and estate taxes$)$ would be$],[,$$$12,000.]]$

Readjustment period Before the birth of their son, Jacob worked as a real estate agent, but his knowledge and skills are now somewhat outdated. Therefore, the Kleins will include $$25,000$ for Jacob to go back to school.

Debt repayment

The Kleins have home improvements totalling $$130,000$ and an auto loan of $$5,000.$ They have $10$ years left on the mortgage on their home, but they have provided for its payment with Sharon's replaced income.

College expenses

A college education at the local public university costs $$30,000$ today. They will use this figure in the needs assessment with the understanding that Jacob would invest the insurance proceeds.

The Klein's Existing Assets and Government Benefits

Government benefits The family would qualify for $$4,700$ monthly Social Security survivor's benefits until the