WEALTH PROTECTION – INSURANCE PLANNING

Mabel shared the following information with you:

Her husband, Boon Teck, is 37 years old and they have a daughter Katherine, 12 years old.

Boon Teck wants to provide for the family for the next 10 years until Katherine is 22 years old and has completed her university education. He estimates that the income needed for the family is $70,000 and Katherine’s university education is $42,000. He also wants to provide $180,000 as retirement income for Mabel and he estimates that the family will need a miscellaneous amount of $25,000 per annum.

Boon Teck has savings of $35,000 and shares worth $78,000. His assets also include an existing life insurance policy of $50,000.

Question: What is the additional amount of life insurance that Boon Teck needs?