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Unformatted text preview: death. 1. ($1,648 x 12 = $19,776) current income x 7 = $138,432 x 0.70 = $96,902.40 Jeff’s family would require $96,902.40 for seven years after Jeff’s death in order to adjust financially. Jeff’s company provides $20,000 of life insurance. Social Security also provides the family with $1,250 a month if Jeff were to die before the children turned 18. This amounts to $15,000 a year, or $105,000 in seven years. At this amount, with the added $20,000 of life insurance from Jeff’s company, the family should be able to cover funeral expenses and adapt to their new financial situation in the seven years following Jeff’s death. However, the problem also states that the family’s expenses would be $250 a month more than Social Security would provide, even with the lowered expenses from Jeff’s passing. Therefore, the family should still consider additional insurance due to Jeff’s new raise at work....
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