[Minimum word length: I500 Words] You are to document your "Recommendations:I as part of the SOA documentation. This must be uploaded as a separate document into the Monarch Student Management System {LMS}. Your recommendations should be written in paragraph form {note: bullet points if used should be used sparingly). Use the following headings [below] and remember all written recommendations should be in your own words; 0 Our insurance recommendations Refer to points 1 5 below when making your recommendations. You should address each of these issues in your answer. 0 Insurance types explained In this area you are required to explain each insurance type 'generally'. That is, explain what each type of insurance provides and some general information about the type of cover. In a 50A this area is general information which is not specic to a client. This information could be used across the board for any client with an insurance recommendation 0 The basis for our recommendations Refer to point 6 below when you provide a basis for your recommendations. Important information for this assessment: Note when using the income capitalisation approach, please note there is NO one correct answer. Rather, there are many possible correct answers. Questions 1 and 2 (below)I require you to comment on the difculties involved in trying to determine how much insurance is appropriate A good answer will identify the main issues to consider as well as indicating any challenges {or opinions} you have when attempting to determine the appropriate amount of insurance. 1. Use the "Income capitalisation approach" to determine the recommended sums insured for Life and TPDI Insurance. You can use a discount rate for a balanced investor of 4%. Show your workings and anyr assumg'ons you make. Combine all assets between Laura and John for this purpose. Discuss the difficulty with Laura's changing work circumstances. In determining how much insurance they require take note of their existing insurance cover. 2. Explain any issues that arise when using the "Income capitalisation approach" to determine the required I ife and TPD Insurance