Adequate Family Protection

Mark and Jane, both 40 years old, have two young children and are concerned about protecting their family’s financial security in case of unexpected events. Mark earns $100,000 annually, while Jane stays home to care for their children. They currently have $50,000 in savings and a mortgage balance of $300,000. Mark has group term life insurance through his employer, with coverage equal to one year of his salary. They want to ensure their family is adequately protected.

Which of the following actions would most appropriately address their need for protection?

1. Purchase additional life insurance for Mark to cover multiple years of living expenses and the mortgage.
2. Establish a 529 college savings plan for their children.
3. Open a joint brokerage account to invest in a diversified portfolio.
4. Purchase disability insurance for Jane.