(Solved): 5. Jeremy, aged 35 and Emily, aged 40 , are common law spouses and have 3 childten, Jack, Maddie, a ...

5. Jeremy, aged 35 and Emily, aged 40 , are common law spouses and have 3 childten, Jack, Maddie, and Grace. They are reviewing their ite insurarce coverage with Mark, a local life insurance agent, to ensure they have adequate coverage. Currently. Jererny and Emily both have term infe insurance in the amount of \( \$ 200,000 \). Jeremy recently inherited a family cottage valued at \( \$ 400,000(A C B \) of \( \$ 200,000) \), which him and Emily hope to pass ch to theit children one day. Mark informs Jeremy \& Emily of the potential tax liability of passing the cottage to their chilidren and advises them that they thould consider purchasing additional life insurance. How much life insurance should they purchase to cover the future tax liability of the children taking into account a tax rate of 50 th? \( \$ 400,000 \) \( \$ 200.000 \) \( \$ 100,000 \) \( 550.000 \)