Answer Happy

Use slide 9 from the PowerPoint slides from this week
to calculate your own life insurance needs. You may keep the exact
numbers confidential, but please discuss the following:
1. Do you currently have life insurance? If so, did you
calculate how much you needed before purchasing? What was the
buying process like?
2. If you do not have life insurance, why not?
3. What did you learn from calculating your life insurance
needs?
What You Will Need Cash needs Exhibit 11.1 How Much Life Insurance Do You Need? Copyright 2017 Pearson Education, Inc. All rights reserved. Funeral costs Uninsused medical bills Installment debts Probe cons Federal estate taxes State inheritance taxes Total estate clearance fund Readjustment period Dependency period Life income to surviving spouse Retirement income Income needs Total income needs Mortgageredenction fund Emergency fund College education fund Total special needs Total needs Special needs What You Have Today Checking account and savings Mutual funds and securities IRAS and Keogh plan Section 401(k) plan and employer savings plan Private pereion desth benefic Curent life insurance Other financial assets Total assets Additional life insurance needed Total neech Less total assets Additional life insurance needed Jennifer Smith 5 15,000 5.000 12,000 3.000 0 0 24,000 180,000 0 0 200.000 50,000 150.000 Jennifer Smith $ 10,000 35,000 20,000 40,000 0 60,000 0 Page $ 35,000 $ 204,000 $ 400,000 $ 639,000 $ 165,000 $ 639,000 165,000 $ 474,000 < 9 Your Needs 5 5 5 5 S Your Aases 5. 5 of 40 O 11-9 ZOOM + ■