can you answer A and B
life life & Kelly, age 35, is as Cson. She earns $45 lyst. Her employ ve 35, is a single parent and has a one-year-old arns $45,000 annually as a marketing ana- or employer provides group life insurance in the ont of twice the employee's salary. Kelly also par- sin her employer's 401(k) plan. She has the fol- ing financial needs and objectives: life ticipates in her er of $ 10,000 Funeral costs and uninsured medical bills Income support for her son $2,000 monthly for 17 years 150,000 15,000 . Pay off mortgage on home . Pay off car loan and credit card debts College education fund for son 150,000 Kelly has the following financial assets: $ 2,000 Checking account IRA account 401(k) plan Individual life insurance Group life insurance 8,000 25,000 25,000 90,000 APPLICATION QUESTIONS 239 SS a. Ignoring the availability of Social Security survivor benefits, how much additional life insurance, if any, should Kelly purchase to meet her financial goals based on the needs approach? (Assume that the rate of return earned on the policy proceeds is equal to the rate of inflation.) b. How much additional life insurance, if any, is needed if estimated Social Security survivor benefits in the amount of $800 monthly are payable until her son attains age 18? life life & Kelly, age 35, is as Cson. She earns $45 lyst. Her employ ve 35, is a single parent and has a one-year-old arns $45,000 annually as a marketing ana- or employer provides group life insurance in the ont of twice the employee's salary. Kelly also par- sin her employer's 401(k) plan. She has the fol- ing financial needs and objectives: life ticipates in her er of $ 10,000 Funeral costs and uninsured medical bills Income support for her son $2,000 monthly for 17 years 150,000 15,000 . Pay off mortgage on home . Pay off car loan and credit card debts College education fund for son 150,000 Kelly has the following financial assets: $ 2,000 Checking account IRA account 401(k) plan Individual life insurance Group life insurance 8,000 25,000 25,000 90,000 APPLICATION QUESTIONS 239 SS a. Ignoring the availability of Social Security survivor benefits, how much additional life insurance, if any, should Kelly purchase to meet her financial goals based on the needs approach? (Assume that the rate of return earned on the policy proceeds is equal to the rate of inflation.) b. How much additional life insurance, if any, is needed if estimated Social Security survivor benefits in the amount of $800 monthly are payable until her son attains age 18
