Question 3 Jeff, age 30 and Nicole, age 28, are married and have two preschool children. Nicole earns $1million annually as a lab technician and Jeff earns $1.5million as a self-employed carpet layer. The couple has little savings, and both incomes are needed to maintain their standard of living. While carrying a heavy roll of carpet into a customer's house Jeff died unexpectedly from a heart attack. A. B. D. Explain the meaning of 'premature death'. (5 marks) Discuss THREE (3) costs associated with premature death. (9 marks) Explain the economic justification for the purchase of life insurance. (6 marks) Explain the terms of each of the following continuation provisions that may be found in a health insurance policy: i. Term contract ii. Cancellable iii. Optionally renewable iv. Guaranteed renewable v. Grace period (10 marks) (Total 30 marks)