2. Make sure the family is taken care of in the event of an untimely death or disability ofeither Remington or June.DeathScenario 1 : Remington DiesRemington was self-employed and his average annual salary was $180,000 p.a.. Post hisdeath, his income needs to be replaced.Income Replacement is basically replacing the income through an insurance to help yourfamily financially when you’re not alive.Below are the expenses that needs to be covered :$135,000 - Annual expense amount (per annum)$67,500 - Emergency fund for 6 months ($135,000/2)$91,380 – Education Cost per child (per annum)Calculation of Annual Education CostCurrent Cost: $15,000Future Cost: $20,101.43 ($15,000*(1.05)^6)Therefore,Annual Cost: $20,101.43Program Years: 5Annual Increase: 5% p.a.Hence,Corpus Required: $91,380.00 (per child)An Insurance is required to cover a total of $385,260 p.a. ($135,000 + $67,500 + $91,380 +$91,380) for 10 years.An additional support from the Insurance is required for 10 years assuming that the kidswould be of age 22 in 10 years and would not need as much of financial assistance as ofnow.