What is whole life insurance? Identify and explain two characteristics of whole life insurance which may not be found in term life insurance. 7 marks

b. Mike and Jasmine are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 2 and 5.

Mike is the wage earner of the family with annual income of $500,000 whilst Jasmine is a nonworking spouse who devotes all of her time to household activities.

i. Using the easy method, determine how much life insurance Mike should carry.

ii. Using the non-working spouse method, determine how much life insurance should the family carry to cover Jasmine.

Show all your calculations.