Anna is a single mother of two small children and earns an annual salary of $65,000. She has been advised to evaluate the amount of life insurance she currently owns to see if it is adequate. She estimates her final expenses needs at $35,000, and estimates family living expenses needs to be $300,000. She also estimates special needs of $200,000 for her children's education fund and any unexpected events. Anna's total financial assets are $350,000, including $200,000 of life insurance. Using the needs approach, how much additional life insurance does Anna need?

Anna is a single mother of two small children and earns an annual salary of $65,000. She has been advised to evaluate the amount of life insurance she currently owns to see if it is adequate. She estimates her final expenses needs at $35,000, and estimates family living expenses needs to be $300,000. She also estimates special needs of $200,000 for her children's education fund and any unexpected events. Anna's total financial assets are $350,000, including $200,000 of life insurance. Using the needs approach, how much additional life insurance does Anna need?



A. $150,000


B. $185,000


C. $300,000


D. $335,000



Answer: B. $185,000

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