The writer is very fast, professional and responded to the review request fast also. Thank you.
Hello, I am looking for a tutor to help me with this question.
The correct answers to this section are based on the set of facts and tables provided below. All the data you need to perform the necessary calculations are contained in the tables following the three paragraphs below. Show all your calculations so you can receive partial credit even if you make a mistake. All answers must be typed, not handwritten.
Ralph and Alice are married and have a daughter, Morticia, age 8. Alice, age 30, earns $50,000 annually from her job. Ralph, age 27, earns $40,000 annually from his job. Assume that Alice will die before Ralph. The family wants to ensure that they have adequate life insurance on Alice to cover their cash and income needs if Alice dies. Hence, they want to determine how much additional life insurance they need to purchase on Alice to cover these needs.
The tables below provide figures on their: 1) cash needs; 2) present insurance and financial assets; 3) income needs; and 4) income that the family will receive if no additional life insurance is purchased. Use the figures in these tables to determine how much additional life insurance the family should purchase on Alice to cover their needs. In your answer, calculate and show the components of any additional life insurance needed in terms of cash needs and income needs and the total amount of additional life insurance needed.
This exercise assumes that: 1) Alice dies immediately; 2) Ralph continues to work if Alice dies; 3) OASDI survivor benefits are only payable to the daughter until she is age 18; and 4) the life insurance proceeds are invested at an interest rate equal to the rate of inflation: 2%.
Cash Needs:
estate clearance $15,000
mortgage redemption $150,000
emergency fund $20,000
educational fund $100,000
Present Insurance and Financial Assets:
group life insurance $150,000
investments/savings $10,000
Income Needs:
readjustment period $5,000 monthly for 2 years
dependency period $5,000 monthly for 8 years
blackout period $3,500 monthly for 30 years
Ralph’s retirement period $3,000 monthly for 25 years
Expected Income from Sources Other than Life Insurance:
readjustment period $3,500 monthly for 2 years
dependency period $3,500 monthly for 8 years
blackout period $3,000 monthly for 30 years
Ralph’s retirement period $2,000 monthly for 25 years
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more