The example in the book calculates the needs by deducting the PV of net income from the PV of expenses, BUT once we have the final net needs, it does not adjust for the tax ie to ensure that the insurance proceeds are gross of tax so the net proceeds cover our needs.
Under the human life method, this was the case indeed. Is it on purpose ie there is no need to adjust insurance proceeds for tax under capital needs method?
Thanks to whoever knows the answer!