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In need of 4c please

Q4: CA 8.1 Vanna and Patrick O'Hara, ages 30 and 40, respectively, are considering the purchase of additional life insurance. They're both employed full time, and they have two children who are 7-year-old twins. Vanna's after-tax income is $30,000, and Pat's is 50,000. Currently, Vanna has a $30,000 term life insurance policy paid for by her employer, and Pat has a $75,000 individual term life insurance policy. Each of the O'Haras would like to have enough life insurance so that, in the event of either's death, it would cover the lost cash flow to the household, help pay off some household debts, and fund their children's college costs. They have estimated these costs as follows $130,000 150,000 10,000 15,000 College fund for children Pay off existing mortgage on home Pay off credit cards Costs at death In addition, they estimate that their household expenses of $60,000 will be about 10 percent less if either one of them dies. If Vanna were to die, the cost of replacing her services to the household would be $10,000 per year for the next 11 years. If Patrick were to die, this annual cost would be $5,000. They don't anticipate that either of them would qualify for a Social Security benefit, but the children would be eligible for combined benefits of $2,000 a month until they reached the age of 18. The O'Haras currently have $50,000 in home equity and $35,000 in savings. Q4: CA 8.1 Vanna and Patrick O'Hara, ages 30 and 40, respectively, are considering the purchase of additional life insurance. They're both employed full time, and they have two children who are 7-year-old twins. Vanna's after-tax income is $30,000, and Pat's is 50,000. Currently, Vanna has a $30,000 term life insurance policy paid for by her employer, and Pat has a $75,000 individual term life insurance policy. Each of the O'Haras would like to have enough life insurance so that, in the event of either's death, it would cover the lost cash flow to the household, help pay off some household debts, and fund their children's college costs. They have estimated these costs as follows $130,000 150,000 10,000 15,000 College fund for children Pay off existing mortgage on home Pay off credit cards Costs at death In addition, they estimate that their household expenses of $60,000 will be about 10 percent less if either one of them dies. If Vanna were to die, the cost of replacing her services to the household would be $10,000 per year for the next 11 years. If Patrick were to die, this annual cost would be $5,000. They don't anticipate that either of them would qualify for a Social Security benefit, but the children would be eligible for combined benefits of $2,000 a month until they reached the age of 18. The O'Haras currently have $50,000 in home equity and $35,000 in savings