Finance 342 - Case Study #1

Finance 342 - Case Study #1

Requirement 1 & 2

According to the given data following calculations have been done. The calculations below shows that there I a need $122,500.



 

 

 

 

 

 

 

 

LIFE INSURANCE NEEDS ANALYSIS

 

 

 

 

BILL

 

 

JAN 2013

 

 

 

 

 

 

 

 

 

(1)

AVAILABLE ASSETS

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Liquid Assets (Cash, T-Bills, Bonds, etc)

 

4,000

 

 

 

 

Investment Assets (Mutual Fund, Stocks) - After tax

 

100,000

 

 

 

 

Other Assets

 

50,000

 

 

 

 

 

 

 

 

 

 

 

Lump Sum Benefits From:

 

 

 

 

 

 

Canada Pension Plan

 

2,500

 

 

 

 

Company Pension Plan

 

200,000

 

 

 

 

Other

 

0

 

 

 

 

 

 

 

 

 

 

 

Total Face Value of Current Life Ins. Policies

 

 

 

 

 

 

Group

 

120,000

 

 

 

 

Individual

 

0

 

 

 

 

Mortgage/Loan Insurance Policies

 

0

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS AVAILABLE:

 

476,500

 

 

 

 

 

 

 

 

 

(2)

CASH REQUIRED

 

 

 

 

 

 

Funeral and Medical Expenses

 

10,000

 

 

 

 

Probate, Executor, Legal and Accouting Fees

 

5,000

 

 

 

 

Outstanding Debts (Exclude Mortgage)

 

5,000

 

 

 

 

Short Term Living Expenses

 

4,000

 

 

 

 

Capital Gains Tax

 

0 ...