Bodily injury : $ 100,000 Personal injury : $ 0 Other endorsements : None Umbrella : None Professional liability : None Business : None Life and Health Life . Haley has a $ 50,000 universal life policy with XYZ Insurance Co . She pays the annual premium of $ 400 . The policy has a current cash value of $ 3,800 ( the cash value at the beginning of the period was $ 3,600 ). John is the primary beneficiary and Haley is the owner . At the time of purchase , policy projections were based on after-tax U . S . Treasury rates of 6 %. John has an employer-provided term policy that pays one times his annual salary . The face amount of the policy is reduced by 50 %, regardless of his salary , at age 65 and terminates at age 70 . Other life assumptions : For planning purposes , the Butterfields would like to use 80 % of their combined incomes , before taxes , to represent their total household expenses in the event of a death . Final illness and burial expenses are estimated to be $ 15,000 each . Estate administration expenses are expected to be approximately $ 5,200 each . Child care expenses will be $ 10,000 . Full retirement age , for insurance purposes , is assumed to be age 67 . The Butterfields need $ 100,000 in annual income per year , before taxes , while retired . They would like to use this assumption for both insurance and retirement planning purposes . Social Security benefit while children are still at home is $ 32,000 if John dies , and $ 29,000 if Haley dies , in today ’ s dollars . At age 60 , Haley is eligible for a $ 13,000 annual Social Security survivor benefit , while John is entitled to a $ 10,000 annual survivor benefit ( in today ’ s dollars ). In the event of either spouse ’ s death , the other spouse plans to stop