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Jackson is 45 years oid and his wife Anna is 37 years. They have two children, Sam 7 years and Alexis 5 years, fackson, at
Jackson is 45 years oid and his wife Anna is 37 years. They have two children, Sam 7 years and Alexis 5 years, fackson, at this time is the sole breadwinner in the family as Anna is staying at home to take care of the children, jackson plans to retire at 65. Anna's plan is to return to work when the children are older. Jackson's monthly income as a manager in a technology firm is $10,000. Their insurance agent, David, is completg an insurance needs analysis with them. Using the income replacement approach, and assuming a 4% rate of return, what amount of capital would have to be invested to generate Jackson's lost income should he die? Select one: a. $3,000,000 b. $2,000,000 C. $2,500,000 d. $1,340,000
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