Client comes to you as a planner and wants to know if she needs to increase her policy. She has a stay at home spouse with twins, ages 9.

Assumptions

No college savings for children, $40,000 for each in a 529 account would cover future costs Mortgage of $80,000 Estimated funeral, burial and probate costs of $40,000 Estimated remaining yearly expenses of $70,000 per year. Of that, Social Security survivor benefits are $20,000 per year. Client can earn 4% return on their investments Client has $240,000 in savings and retirement investments Client has $110,000 of life insurance through work

Questions

How much life insurance is needed to cover at death costs ? $_______ How much life insurance is needed to generate remaining living expenses? $_______ How much money does she have as of now to cover some of her needs? $_______ How much additional life insurance should she buy? $________