MTHEL131 Lecture Notes - Retirement Age, Life Insurance, Life Table
11 Oct 2013
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The average canadian family only has ,000 of coverage (they"re extremely uninsured: m. a. r. t. goals. Without a timeframe, it"s just a dream, not a goal. 10% of income should go to long-term programs of investment and insurance. Going to be 12-14% for our generation. You can invest and get whatever you put aside, or buy life insurance and get hundreds of thousands. Investing is a tradeoff between risk and return (%) How to calculate how much insurance needed (capital needs analysis) Emergency fund (3 months of new target income) Ongoing expenses: income replacement (additional ongoing income required by survivor) She only needs to replace ,000/year / month. This money will be necessary for 15 years (until child turns 18) 145. 57 is the factor from the given actuarial table. She needs ,000 to continue the same lifestyle as before. So: immediate expenses (k) + ongoing expenses (k) = k.
