Phil Fraser, aged 59, is a mechanic. For the past 10 years, he has successfully operated his own business. Phil’s income from the business is $330,000 per annum. Phil’s wife, Sharon, is 62 and has been a part-time business adviser for the past 10 years. She earns $60,000 per annum before tax. There are two children: Nicole, aged 28, and Peter, aged 25. It is Phil and Sharon’s desire that their children have the opportunity to buy their own homes. To provide for this, they estimate that $200,000 should be set aside. Sharon’s mother, Liz, is living with the family. She is 86 and receives a small pension that covers her incidental expenses. Phil and Sharon meet her other expenses, which amount to $400 per month. The family’s basic living expenses are $3,000 per month. In addition, for each family member (including parents), this will increase by $700 per person. The Frasers own their own house, which has a value of $950,000 and a mortgage of $200,000. Credit cards and personal loans amount to $25,000. It has been agreed that, in the event of Sharon’s death, Phil’s income will be sufficient to meet the family’s needs, though debts would need to be paid out and other lump sum amounts met. The life expectancy is to be taken as 80 years for males and 85 years for females. There is a self-funded superannuation plan which will provide sufficient income from age 65 for either or both of the Frasers. There is in force a policy on Phil’s life for $350,000 and none on Sharon’s. Funeral and associated costs are expected to amount to $10,000, and final medical expenses will amount to $25,000. Legal and estate costs are anticipated to be $5,000. Additionally, they believe they need emergency funds of $20,000. From the information provided,

 calculate the amount of cover necessary if separate life covers were to be effected for Phil and Sharon.