Needs analysis EOC 17 Vol 4 reading 23


On EOC 17, we are asked to find the additional life insurance needed using needs analysis. As part of the data provided, we have a reduction of 30000 per year in living expense and a projected living expense of 50000. The solution only takes into account the 50000. Why don’t we subtract the 30 000 from the 50 000 in this case?

Thank you

Reread the information.

What are the family’s expenses today?

What will they be should Adrian die?

What does the AUD 30,000 represent?

What does the AUD 40,000 represent?

Got it. Thank you for guiding me.

My pleasure.