Complete question number 1 on Page 383 of the textbook, Be Your Own Personal Financial Manager. Provide your answer on the worksheet entitled, Determining My Life Insurance Needs.
Answer the question, How would having a family change your need for life insurance?, at the bottom of the worksheet.
PS I included ".." as screenshoot and question 1
Determining My Life Insurance Need... Sheet1 Sheet2 Sheet3 Insert Your Figures Determining My Life Insurance Needs (page 353) NOTE: Resuits here may differ slightly than when using Appendix Ain text due to rounding Factoru Affecting Noed 1. Income-replacement needs 2. Final expense needs 3. Readjustment period needs 4. Debt-repayment needs 5. College-experse needs 6. Other special needs 7 Subtotal (combined effects of items 1-6) B. Government benefits 9. Investment Assets Available 10. Current Life Insurance In Place 11. Life insurance needed $823,219 12.000 19,000 10,000 75,000 939,218.537 $390,370 SO 99,000 450,848,059 "Income Replacement Needs Calculator Current Annual Income Percent of Annual Income To Be Replaced Annuity Amount (% desired of annual income) i (assumed interest rate n (number of annuily payments) PV (present value) of income Replacement Needs $56,000 75% $42.000 3.00% 30 $823,219 **Present Value of Social Security Benefits Calculator Estimated Monthly Benefit (See Appendix B in Text) Estimated Annual Benefit (assumed interest rate number of annuity payments PV (present value) of Government Benefits $2,725.00 $32,700 3.00% 15 $390,370 Do Not change the figures in the blue text lines these will automatically calculate based on your other figures BE AL FIN 1. Calculating Life Insurance Need. Review the material in "How Much Life Insurance Do You Need?" on pages 358-363. Then using dollar amounts that fit your per sonal situation, complete Worksheet 48: Determining My Life Insurance Needs from My Personal Financial Planner." If you are currently single and childless, for the purposes of this activity, assume that you are 30 years old, have two children under age 5, are married, and earn $60,000 per year My Personal and redo the estimate of need. How would Financial having a family change your need for life Planner insurance? Determining My Life Insurance Need... Sheet1 Sheet2 Sheet3 Insert Your Figures Determining My Life Insurance Needs (page 353) NOTE: Resuits here may differ slightly than when using Appendix Ain text due to rounding Factoru Affecting Noed 1. Income-replacement needs 2. Final expense needs 3. Readjustment period needs 4. Debt-repayment needs 5. College-experse needs 6. Other special needs 7 Subtotal (combined effects of items 1-6) B. Government benefits 9. Investment Assets Available 10. Current Life Insurance In Place 11. Life insurance needed $823,219 12.000 19,000 10,000 75,000 939,218.537 $390,370 SO 99,000 450,848,059 "Income Replacement Needs Calculator Current Annual Income Percent of Annual Income To Be Replaced Annuity Amount (% desired of annual income) i (assumed interest rate n (number of annuily payments) PV (present value) of income Replacement Needs $56,000 75% $42.000 3.00% 30 $823,219 **Present Value of Social Security Benefits Calculator Estimated Monthly Benefit (See Appendix B in Text) Estimated Annual Benefit (assumed interest rate number of annuity payments PV (present value) of Government Benefits $2,725.00 $32,700 3.00% 15 $390,370 Do Not change the figures in the blue text lines these will automatically calculate based on your other figures BE AL FIN 1. Calculating Life Insurance Need. Review the material in "How Much Life Insurance Do You Need?" on pages 358-363. Then using dollar amounts that fit your per sonal situation, complete Worksheet 48: Determining My Life Insurance Needs from My Personal Financial Planner." If you are currently single and childless, for the purposes of this activity, assume that you are 30 years old, have two children under age 5, are married, and earn $60,000 per year My Personal and redo the estimate of need. How would Financial having a family change your need for life Planner insurance
