How much additional life insurance should sheila purchase


Problem

Sheila is using the needs approach to determine how much life insurance to buy. Her cash needs are $58,811; her income needs are $148,452; and special needs are $29,157. Sheila has the following assets: $5,190 in bank accounts, $87,656 in retirement plans, and $14,774 in investment accounts. Sheila owns no individual life insurance. She is covered by a $59,652 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sheila purchase?

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