Purpose

This assignment is intended to help you learn to do the following:

• Suggest life insurances for clients based on their needs and financial goals.
• Explain taxation of life insurance.
• Compare and contrast various types of annuities.
• Suggest appropriate annuities for clients.
• Explain life insurance as employee benefits.
• Apply Capital Needs Analysis approach to determine life insurance needs.

Overview

Please read carefully the facts of this case as laid out in 8-2: Case Analysis Paper.

Action Items

Based on the above case facts, answer the following questions:

1. Use the multiple earnings approach in Chapter 4 to calculate the amount of life insurance needed to meet the Hayes financial goals. Simply take an individual's annual income x the factor to determine the recommended amount of life coverage. The factor needed for the multiple of earnings approach for this assignment is 9.8.
2. Use the Sample Life Insurance Needs Analysis Form Exhibit 4.5 to determine the amount of life insurance needed to meet the Hayes' financial goals.
3. What types of life insurance policy and what amounts of insurance determined per tool would you recommend for the Hayes family? State your rationale for the recommendation. Write your analysis in a 4-5 page paper including the worksheet.

Grading Criteria

Read the assignment rubric to understand how your work will be assessed.