Insurance Advice Question Answer 2022

Running head: INSURANCE ADVICE
Insurance Advice
Name of the Student:
Name of the University:
Author’s Note:

INSURANCE ADVICE1
Table of Contents
Question 1........................................................................................................................................2
References........................................................................................................................................6

INSURANCE ADVICE2
Question 1
a) i) The lump-sum amount that would be required for the purpose of covering all the
expenses and finance requirement would be determined with the help of total cash
inflows and total cash outflows that is expected to be paid out in the due course of time
period. The expenses that would be paid out by Anna would be considered by ignoring
the time value of money consideration where simply expenses or income would be taken
on a simple method for the purpose of determining the total amount of lump sum amount
that would be required for the purpose of life coverage. The expenses that would be
incurred by Anna would be distributed and classified into three key heads such as
mortgages and loans, other expenses that would be including funeral, medical, tax, legal
and emergency funds that would be used for the purpose of determining the total other
expenses. On the other expenses directly related to Jason such as Private School Fees of
Jason for a sum of five years would be around $75,000 taking $15,000 as the full and
final amount that would be required for a sum of five-years for financing the private
secondary school expenses. On the other Jason would also be attending the University for
a sum of three year whereby additional $15,000 would be incurred requiring an all total
of $45,000. On the other hand there would be also annual living costs that would be
required for Jason whereby $26,000 would be required for a sum of ten years making it a
total of $260,000 (Gera et al., 2017). The total cash inflow would be from the current
superannuation balance that is around $100,000 on the other hand, the total cash outflow
would be around $610,000 making a deficit of $510,000 that would be required by Anna
as a purpose of life coverage. The detailed explanation can be well highlighted in the