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Life insurance needed Calculate the amount of life insurance you should have using the human life approach. The concept of human life value procedure is used everywhere in the world, mostly by the underwriters working for the insurance companies and courts to calculate the value attached to human life, commonly referred to as Human Life Value (HLV) CITATION Rob12 l 1033 (Chris and Zaremba). When the value of human life (HLV) is determined, then an individual and his/her family is guaranteed a good living standard depending on the annual income and age. The value is determined in such a way that the needs of the family are taken care of even when the head of the family (contributor) is deceased or in a situation where he/she is unable to provide for the family, due to circumstances that were not planned. I am 22 years old, and the expected retirement age is 55 years old. I currently earn an annual salary of $45000. From the amount earned, my annual expenditure is as follows: 20% is used for personal expenditure. 80% by my family. An additional $10,000 of non-wage value is set aside for use by my family. This could be equivalent to the cost incurred by hiring a domestic worker. (Think of this as the cost incurred by hiring a domestic worker). At my current age of 22 years, my total value to my family can be calculated as shown in the table below: Item Calculation Value Family Expenditure (FE) 80% ×$45,000=$36,000 Non-wage value (NWV) - =$10,000 Total value at age 22 FE+NWV= 36000+10,000 =$46,000 Since I am planning to retire at the age of 55, it means that I have 55-22 = 33 years of service. Suppose the inflation increases at a rate of 3%, and then the value is likely to
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