ITS A COMPLETE QUESTION. AS JUST HAVE TO CALCULATE THE AMOUNT:

Insurance Needs Analysis :

Bob and Sally have three children and called you to review their life insurance needs,Based on the information below, calculated the amount of life insurance Bob requires.

Sally's After-tax income (last calendar year) $45,000

Bob's After- tax income (last calendar year) $55,000

Joint Investment $150,000

Sally's RRSP's $70,000

Bob's RRSP's $65,000

Bob's Vehicle $50,000

Sally's Vehicle $35,000

Primary Residence $1 Million

Cash $35,000

Mortgage $485,000

Jewelry $45,000

Antiques $30,000

Line of Credit (loan) $55,000

Credit Cards $20,000

Personal loans (cars, etc.) $45,000

Education Costs $115,000

Funeral Costs each $20,000

Continuing household expenses $60,000

They are beneficiaries of each other's RRSPs

They would not liquidate the investment portfolio which generates $5,000 annually

Investment rate are at 6%.

Inflation is 2.5%

Tax rate on investments is 20%

The antiques and jewellery would not be liquidated upon the death of one.

They would sell Sally's vehicle in the event of either of their deaths

They would like the calculation based on a 20-year period.