Question
Kelly, age 35, is a single parent and has a one-year-old son. She earns $45,000 annually as a marketing analyst. Her employer provides group life
Kelly, age 35, is a single parent and has a one-year-old son. She earns $45,000 annually as a marketing analyst. Her employer provides group life insurance in the amount of twice the employees salary. Kelly also participates in her employers 401(k) plan. She has the following financial needs and objectives:
| $ 10,000 |
| $2,000 monthly for 17 years |
| 150,000 |
| 15,000 |
| 150,000 |
Kelly has the following financial assets:
| $ 2,000 |
| 8,000 |
| 25,000 |
| 25,000 |
| 90,000 |
Ignoring the availability of Social Security survivor benefits, how much additional life insurance, if any, should Kelly purchase to meet her financial goals based on the needs approach? (Assume that the rate of return earned on the policy proceeds is equal to the rate of inflation.)
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Foundations of the Legal Environment of Business
Authors: Marianne M. Jennings
3rd edition
978-1305117457
