Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five! They were expecting twins until they found out the day, they were born that they were actually the parents of triplets! Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family?

Current Financial Situation - Income

Jamie Lee: $45,000 gross income ($31,500 net income after taxes)

Ross: $73,000 gross income ($60,800 net income after taxes)

1. Jamie Lee and Ross need to ensure that the surviving spouse and the children will not have financial hardship in the event of a loss. Using the Easy Method how much life insurance should Ross purchase? How much life insurance should they purchase for Jamie
2. Ross figures that if he were to die prematurely that Jamie Lee and the family may lose 15 to 20 years of Rosss salary. Ross also determines that in 17-18 years the family may need $400,000 to educate the triplets. On a needs-based method, if Ross wants to be conservative and cover 15 years of loss salary and educational expenses what would be a reasonable amount of life insurance that he would need to purchase just on his life? What would be the best type of insurance to purchase and why?