QUESTION: CASE STUDY You have been asked to advise on the amount of life insurance cover that should be provided for the Harrison family. Emily is 30 years old and is an accountant with an annual gross income of $120,000. Her husband Malcolm is 32 years old and self employed as a landscape gardener. He earns approximately $150,000 per annum. Both work fulltime and utilise childcare for their two children, aged one and four. Both children will attend the local public school. The family's living expenses are $3,000 per month, which covers all their immediate needs. In addition, each parent requires $250 each per month and the children require $220 each per month; child care amounts to $350 per week per child until each child is of school age and then it is expected to drop to $100 per week for each child for after-school care. The children are expected to be dependent until they reach 21 years. Once the children are no longer dependent, living expenses are anticipated to fall to $2,000 per month. Emily and Malcolm recently purchased their own home, valued at $650,000, but still have a mortgage of $350,000. Both Emily and Malcolm have credit cards the total balance is $18,000. They would also like to fund their children's university education, expected to be $30,000 per child. Emily has superannuation with insurance worth $250,000, and Malcolm has $75,000 in his superannuation account. Calculate the level of term life cover needed for Emily and Malcolm, using both the multiple and the needs analysis approaches (You will need to refer to Chapter 15 of the Text Book). It is essential that you clearly show all your workings in a logical and precise manner. You need to assume the foffowing: Funeral costs $10,000 Final medical costs $15,000 Legal costs $5,000 Required emergency funding $25,000 The investment rate is 5% per annum Emily and Malcolm will need to be provided for till age expectancy of 82 years.)