Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Surprisel Jamie Lee and Ross were stunned to find that their family of two has grown to a family of fivel They were expecting twins,

image text in transcribed
image text in transcribed
Surprisel Jamie Lee and Ross were stunned to find that their family of two has grown to a family of fivel They were expecting twins, but when the babies were born, they discovered that they were actually the parents of triplets! Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times threet What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family? Jamie Lee and Ross decided to purchase life insurance for Ross because his is the higher income at this time and because it would be more devastating if his income was lost due to his death. They have allowed $8,200 for funeral costs. Calculate their living expenses for 6 months to include all monthly expenses, excluding credit card debt and entertainment. Note that Ross's mother lives close and will be providing childcare to their triplets once Jamie Lee goes back to work at the bakery for half days. His mom will have a hired nanny to assist, which will cost them $1,300 a month. Use the table below to determine the amount Jamie Lee and Ross should use when shopping for life insurance. Each answer must have a value for the assignment to be complete. Enter " 0 " for any unused categories. Use the "family need" method to complete 1. Yearly income x5 2. Total approximate expenses above and beyond your daily living costs for you and your dependents (e.g. tutition, care for disabled child or parent) 3. Emergency fund needed (6 months of living expenses) 4. Expected funeral expenses 5. Total estimate of family's financial needs (sum of lines 14) 6. Total liquid assets (e.g. savings account, CDs, money market funds, other life insurance, pension plan death benefits, and Social Security benefits) 7. Life insurance needs (total estimate of needs minus liquid assets)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

4th Edition

0130224448, 9780130224446

More Books

Students also viewed these Finance questions

Question

1. What are the steps in the marketing research process?

Answered: 1 week ago