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

Answer:

$202,200

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