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Life insurance needs for a young married couple. Veronica and Lars have been together for five years. They recently bought a home costing $110,000 using an $88.000 mortgage. They have no other debts. Lars cams $32,228 per year, and Veronica eams $44,531. Each has a retirement plan valued at approacimately $10,000. Their only life insurance currently is employer-sponsored term life insurance which covers each of them at double their salary amount. They each would like to provide the other with support for at least five years if one of them should die Assuming $13,125 in final expenses and $44,000 to help with mortgage debt, calculate the amount of life insurance they should purchase using the needs-based approach. [10 points) Factors Affecting Veronica's dollar Calculation Calculation Lars' dollar amount Need amount 1. Final expense needs N 1/Y-3 NE 2. Income 1/Y-3 replacement needs (Multiply annual PV - CPT income by 75% for PMT - PMT) FV-0 PV - CPT PMT - |FV-O 3. Readjustment period needs 4. Debt-repayment needs 5. College-expense needs 6. Other special needs 7. Subtotal (Add 01-6) N- NE 1/Y 1/Y a. Government benefits PV-CPT PV.CPT PMT- PMT- FV- FV- 9. Current insurance assets 10. Subtotal (Add 08-9) 11. Life insurance needed to purchase (Line 7 minus Line 10) Life insurance needs for a young married couple. Veronica and Lars have been together for five years. They recently bought a home costing $110,000 using an $88.000 mortgage. They have no other debts. Lars cams $32,228 per year, and Veronica eams $44,531. Each has a retirement plan valued at approacimately $10,000. Their only life insurance currently is employer-sponsored term life insurance which covers each of them at double their salary amount. They each would like to provide the other with support for at least five years if one of them should die Assuming $13,125 in final expenses and $44,000 to help with mortgage debt, calculate the amount of life insurance they should purchase using the needs-based approach. [10 points) Factors Affecting Veronica's dollar Calculation Calculation Lars' dollar amount Need amount 1. Final expense needs N 1/Y-3 NE 2. Income 1/Y-3 replacement needs (Multiply annual PV - CPT income by 75% for PMT - PMT) FV-0 PV - CPT PMT - |FV-O 3. Readjustment period needs 4. Debt-repayment needs 5. College-expense needs 6. Other special needs 7. Subtotal (Add 01-6) N- NE 1/Y 1/Y a. Government benefits PV-CPT PV.CPT PMT- PMT- FV- FV- 9. Current insurance assets 10. Subtotal (Add 08-9) 11. Life insurance needed to purchase (Line 7 minus Line 10)

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