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