Rick is aged 40 and Jasmine is aged 36. Jasmine works as a stay-at-home mum whilst Rick works in an office, which produces an average net profit of $130,000 before tax. They have two children, aged 7 and 12 whom they expect will remain dependent until age 23 at which time the living expenses will decrease by $12,000 p.a. for each child when they leave home. They own their own house worth $1,110,000, which is subject to a mortgage of $300,000. They also own an investment property worth $800,000, which is subject to a mortgage of $550,000. They also have an outstanding credit card debt of $12,000. Both Rick and Jasmine own their own cars. The couples living expenses total $80,000 p.a. including payment of a $26,500 p.a. annual mortgage payment. The couple would like to send the children to a private school from years 9 12 which is expected to cost $140,000 in total. In event of the death of either Rick or Jasmine, they estimate death and medical expenses to cost around $15,000. Rick currently has life cover of $150,000 in his superannuation fund (his current superannuation fund balance is $225,000) whilst Jasmine has no life cover, also they have no other personal insurances. Rick's father passed away recently at age 65 as a result of heart disease, which seems to be a hereditary problem in Ricks family.

1. Calculate how much additional life insurance might be recommended for Rick? Assume that coverage is required through to current life expectancy (82 for females, 78 for males). Further, assume the reinvestment rate is 7% per annum