Directions: Use the Needs Approach mentioned in chapter 4 to determine the life insurance need for the fictional client mentioned below. Tip: Use the example for needs analysis in Chapter 4, the recorded lectures, and the video tutorial in week 3 for help with the calculations. Show all time value of money entries and all supporting work for calculations to allow me to award partial credit. There is no rubric for this assignment. A total of 80 points is available. Point totals are provided below for each question. . Client Scenario: Matthew and Madison Abbott are both 32 years old. They have two kids Tori, age 6 and Trace, age 3. Using the Needs Approach, help the Abbott family determine how much insurance is needed on Matthew's life to provide adequate protection for the family should he die. Assume the following additional points: Social Security for $2,400 per month until Trace turns age 16. Madison is no longer entitled to benefits after Trace turns 16. Social Security for $1,200 per month until Trace is 18. The children stop receiving benefits upon turning age 18. Social Security widow's benefit from age 60 to life expectancy age 93 for $3,000 per month. College education costs of $24,000 per year per child in today's dollars, at age 18 for four years. The education inflation rate is 4.00%. Total income needs of Madison during the dependency period until Trace is age 22 is $6,500 per month in today's dollars. The same monthly income need continues through her remaining life expectancy. Inflation is expected to be 2.25% The investment rate of return is expected to be 7.25%. Final expenses are anticipated to be $52,000. Mortgage and debt repayment total $298,000. . Directions: Use the Needs Approach mentioned in chapter 4 to determine the life insurance need for the fictional client mentioned below. Tip: Use the example for needs analysis in Chapter 4, the recorded lectures, and the video tutorial in week 3 for help with the calculations. Show all time value of money entries and all supporting work for calculations to allow me to award partial credit. There is no rubric for this assignment. A total of 80 points is available. Point totals are provided below for each question. . Client Scenario: Matthew and Madison Abbott are both 32 years old. They have two kids Tori, age 6 and Trace, age 3. Using the Needs Approach, help the Abbott family determine how much insurance is needed on Matthew's life to provide adequate protection for the family should he die. Assume the following additional points: Social Security for $2,400 per month until Trace turns age 16. Madison is no longer entitled to benefits after Trace turns 16. Social Security for $1,200 per month until Trace is 18. The children stop receiving benefits upon turning age 18. Social Security widow's benefit from age 60 to life expectancy age 93 for $3,000 per month. College education costs of $24,000 per year per child in today's dollars, at age 18 for four years. The education inflation rate is 4.00%. Total income needs of Madison during the dependency period until Trace is age 22 is $6,500 per month in today's dollars. The same monthly income need continues through her remaining life expectancy. Inflation is expected to be 2.25% The investment rate of return is expected to be 7.25%. Final expenses are anticipated to be $52,000. Mortgage and debt repayment total $298,000
