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Income replacement method = $ 8 0 0 0 0 x 7 = $ 5 6 0 , 0 0 0 - Danika should carry
Income replacement method $ x $
Danika should carry $ of life insurance to replace her income for her family
Family Need Method
Johana and her spouse are in good health and have reasonably secure careers. She makes about $ annually and has opted for life insurance coverage of three times her salary through her employer. With her spouses income, she absorbs ongoing living costs of $ a year. Johana owns a home with a $ remaining mortgage balance. Other debts include a $ car loan, $ student loan, and $ charged to credit cards. In the event of her death, Johana wishes to leave her family debtfree. One of her most important financial goals involves building an education fund of $ to cover the cost of a fouryear university program for her two children ages and To date, she has accumulated $ toward this goal in an RESP. Should she die, her beneficiaries would receive a $ death benefit lump sum payment from the Canada Pension Plan. She also has $ in her company pension plan. Average funeral expense is $ Dependents need years of income assume as living expenses. Assume that there is a desire to have a month reserve based on her annual income. Her other financial assets are as follows:
Bank accounts $
Term deposits months
TFSA High Interest Savings
Stock investment account
RRSPs
Use the family need method to determine her life insurance needs.
How much she will need if she passed away step
Step subtract her existing assets in cash benefits
Calc how much insurance cost she will need
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