and collect early Social Security benefits at age 60. They will receive $ 16,500 at that time. For conservative planning purposes, the Mayfields do not plan to use interest and / or dividends as an income source when planning insurance needs. Full retirement benefits, at age 66, are $ 23,580. In addition to Peter’ s life insurance, they are willing to use all of their retirement, investments, and monetary assets to meet insurance needs. Disability Insurance Peter’ s employer provides both short- and long-term disability coverage. His short-term coverage pays 100 % of his earned income for the first six months of disability. There is no wait period for this coverage. Peter’ s long-term coverage has a six-month wait period and pays a benefit equal to 60 % of earned income until age 65. All premiums, for both policies, are employer paid. If Peter were to become disabled, they would not continue to save for other goals. In case of disability: Total household expenses in the event of death or disability are $ 85,000. When calculating life insurance needs, the Mayfields are willing to use all their combined retirement savings to offset insurance needs. The Mayfields assume that in the event of a possible disability neither will be eligible for Social Security disability benefits. For life insurance planning purposes only, they would like to replace $ 85,000 per year, in today’ s dollars, for retirement. Long-term Care Insurance The Mayfields do not currently have long-term care insurance. Retirement Information and Planning Issues The following information should be used when evaluating the Mayfields’ current retirement planning situation: Peter does not have a defined benefit plan at this time. Retirement age for reduced Social Security benefits is age 62; they plan to retire and take benefits at