Chris and Christina, both age 40, have two children: Steven, 4, and Stephanie, 5. Both Chris and Christina are engineers whose work has them frequently at construction sites. They wish to purchase life insurance but they do not know how much they need. They tell you they want coverage for the next 15 years. Using the following, information calculate their required amount of life insurance using the income approach.

1. (a) They want to have at least enough money, in case of any one of their deaths, to have their children attend university debt free.

2. (b) The children will (should) finish university in about 15 years.

3. (c) Use a real rate of interest is about 3%.

4. (d) Chris makes $95,000 a year with take-home pay of $66,500 a year.

5. (e) Christina makes $100,000 a year with take-home pay of $70,500 a year.

6. (f) They live in Alberta and have marginal tax rate of 30%.

7. (g) They tell you they have insurance coverage at work that will pay them twice their gross

   annual salary if they die.