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Possible and the insurance policy

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John Jones is married, with a son, and would like to purchase enough life insurance to provide the following for his family.

Pay off home mortgage                  $200,000

Pay off car loan                                20,000

Final burial expenses                        10,000

College education for his son             60,000

Annual living expenses for his family  60,000/year for 20 years

If he were to die, his son and wife would receive $14,400 annually for 12 years from Social Security. His wife is also the primary beneficiary of his $100,000 group life policy. Given this information, how much more life insurance does John need? Additionally, John would like to keep his cash outlay as low as possible and the insurance policy that he purchases to last only 20 years.

What type of insurance policy would you recommend?

Show all calculations for full credit.

Reference no: EM131624531

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