Mr.Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36 respectively. Life expectancy for both of them is another 40 years. They have no children. Other information you have is:

Current investment portfolio Rs. 20 lakh, Estimated final expenses – Rs. 1 lakh, present annual expenses- Rs 4 lakhs (including 1 lakh MrTiwari’s personal expenses), Mr. Tiwari’s post tax income in hand is Rs 3.5 lakhs. Assume a post tax; and post inflation rate, the discounting factor is 4%. Calculate the insurance requirement under the Needs Based Method.