Jamie Lee and Ross decided to purchase life insurance for Ross because his is the higher income at this time and because it would be more devastating if his income was lost due to his death. They have allowed $8,800 for funeral costs. Calculate their living expenses for 6 months to include all monthly expenses, excluding credit card debt and entertainment. Note that Ross's mother lives ciose and will be providing childcare to their triplets once Jamie Lee goes back to work at the bakery for half days. His mom will have a hired nanny to assist, which will cost them $1,350 a month. Use the table below to determine the amount Jamie Lee and Ross should use when shopping for life insurance. Each answer must have a value for the assignment to be complete. Enter "O* for any unused categories. Current Financial Situation Assets: Checking account Savings account Emergency fund savings account IRA balance Income: $3.300 Gross income (Jamie Lee) $16,800 Net income after taxes (Jamie Lee) $19,900 Gross income (Ross) $25,800 Net income after taxes (Ross) $12,300 Monthly Expenses: $19,800 Mortgage $53,000 $37,100 $77,000 $63,900 Car (Jamie Lee) Car (Ross) Liabilities: Student loan balance $1,345 $480 $280 Property taxes $0 Homeowners insurance Current Financial Situation Assets Checking account Savings account Emergency fund savings account IRA balance Car (Jamie Lee) Car (Ross) Liabilities Student loan balance Credit card balance Car loans Income: $3,300 Gross income (Jamie Lee) $16,800 Net income after taxes (Jamie Lee) $19,900 Gross income (Ross) $25,800 Net income after taxes (Ross) $12,300 Monthly Expenses: $19,800 Mortgage $53,000 $37,100 $77,000 $63,900 10 points eBook Print References $1,345 $480 $280 $200 $540 $315 $315 $297 $165 Property taxes so Homeowners insurance $4,300 Utilities $7,800 Food Gas/maintenance Credit card payment Car loan payment Entertainment Answer is complete but not entirely correct. Use the "family need" method to complete 11] 319,500 1. Yearly income x 5 2. Total approximate expenses above and beyond your daily living costs for you and your dependents (e.g. tutition, care for disabled child or parent) 3. Emergency fund needed (6 months of living expenses) 4. Expected funeral expenses 10 points 12] 4,807 13] 28,842 14] 8,800 [5) 361,949+ 5. Total estimate of family's financial needs (sum of lines 15 1-4) 361,949 6. Total liquid assets (e.g. savings account, CDs, money market funds, other life insurance, pension plan death 6 $ 77,800 benefits, and Social Security benefits) 7. Life insurance needs (total estimate of needs minus liquid assets) 17) 284,149
