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Villiam is 40 years old, is married to Kate (age 38), and they have two hildren, Andrew (age 9) and Edward (age 6). All family

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Villiam is 40 years old, is married to Kate (age 38), and they have two hildren, Andrew (age 9) and Edward (age 6). All family members are healthy, and William and Kate anticipate living until about age 85. William is a trial attorney and earns $150,000 per year. This year, they made the final payment on their mortgage, and have retirement plans that are on track to provide them with their desired retirement income at age 65 . Since the children arrived, Kate, who is also an attorney, decided to stay at home. William and Kate have asked for your help in determining the appropriate amount of life insurance to purchase for Kate and would like to use the needs approach to life insurance funding. They estimate that funeral expenses will be $12,000; that medical expenses would be no more than $7,000 (since they have very good health insurance coverage); that probate fees would be about $9,000; and that due to his demanding schedule, William would have to hire full-time household staff to take care of the children and the home until Edward is in college at a cost of approximately $65,000 per year, after which he could hire part time household staff for the remainder of his life at a cost of about $25,000. They estimate that inflation will average 3% over their lifetime and anticipate that expenses they incur will increase at the rate of inflation. William believes that he can earn 8% per year on invested funds. How much life insurance should be purchased by the family to cover their needs if Kate were to die today? (Answer with a positive number, round to the nearest dollar) Juan, a 40 -year-old salesperson, earns $95,000 per year and plans to work until age 67. He is married to Fran and has two children. He expects his annual salary increases to be equal to the inflation rate of be 3%, and their average tax bracket (state and federal) is 25%. Juan estimates that 15% of his after-tax income is used for personal consumption, and that his family could invest the death benefit proceeds at 5%. Based on the Human Life Value approach to life insurance needs analysis, how much life insurance should Juan purchase? (Answer with a positive number, round to the nearest dollar)

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