Justus is a widow and a father of three teenagers.He is currently 42 years old and hope to relieve to 85 years. He will retire at age 65.He currently earns ksh 200,000 per month. His personal expenses amount to ksh 50,000.His employer contributes a taxable pension benefit of ksh 20,000 per month and provides a housing allowance of ksh 30,000 per month. He receives a non-taxable benefit of ksh 4,000 per month as food benefit. He pays taxes at 25%. Annual salary is projected to increase at 3%. His financial assets and obligation are as follows.

a)His current bank balance is ksh 500,000

b)His mortgage balance is ksh 5,000,000

c)His life insurance cover amounts to ksh 5,000,000

d)During his working life, his living expenses amount to ksh 500,000 per year, but when he retires, he estimates it will be ksh 350,000

e)His children education budget is estimated at ksh 400,000, ksh 500,000 and ksh 800,000 in the next three years

f)Upon retire, he wishes to leave an estimate of ksh 4,000,000 to his children

USING A COMBINATION OF APPROCHES, determine the life insurance need. Using 8% as real interest rate