Question

You are a dual income, no kids family. You and your spouse have the following debts (total): mortgage, $380,000; auto loan, $20,400; credit card balance, $5,800; and other debts of $10,700. Further, you estimate that your funeral will cost $11,600. Your spouse expects to continue to work after your death. Using the DINK method, what is your life insurance need?

Answer 1

$220,050

Step-by-step explanation:

DINK is a method of calculating life insurance coverage.

DINK , an acronym for double income no kid is calculated by adding to the funeral expenses half of all debts.

Mortgage - $380000

Auto loan - $20,400

Credit card balance - $5800

Other debts - $10700

Total $416,900

Insurance need = $11600 + ($416900/2)

$11600+$208450 = $220,050