Question

You are a dual income, no kids family. You and your spouse have the following debts (total): mortgage, $350,000; auto loan, $18,600; credit card balance, $5,200; and other debts of $9,800. Further, you estimate that your funeral will cost $10,400. Your spouse expects to continue to work after your death. Using the DINK method, what is your life insurance need?

$394,000
$10,400
$202,200
$404,400
$191,800

Answer 1

$202,200

Step-by-step explanation:

DINK (double-income no kids): It suggest to add half all the marriage debt to the funeral expenses:

To the funeral expenses you will add half of the debts:

350,000 / 2 = 175,000 for mortgage

18,600 / 2 = 9, 300 for atomobile loan

5,200 / 2 = 2,600 for credit card debt

9,800 / 2 = 4, 900 other debt

funeral exp 10, 400

insurance: 202,200