Question

You are a dual-income, no-kids family. You and your spouse have the following debts (total): mortgage, $200,000; auto loan, $10,000; credit card balance, $4,000; other debts, $10,000. Further, you estimate that your funeral will cost $8,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance?

Answer 1

$125,000

Step-by-step explanation:

Under the DINK method, the amount will be half of the total expenses. The computation is shown below:

= Half amount of mortgage + Half amount of auto loan + Half amount of credit card balance + other debts + funeral expenses

= $100,000 + $5,000 + $2,000 + $10,000 + $8,000

= $125,000

The other expenses and the funeral expenses would be fully-added and the rest item would be half added.