Question

You are a dual income, no kids family. You and your spouse have the following debts (total): mortgage, $180,000; auto loan, $10,000; credit card balance, $2,000; and other debts of $6,000. Further, you estimate that your funeral will cost $4,000. Your spouse expects to continue to workafter your death. Using the DINK method, what should be your need for life insurance?
A)$103,000
B)$206,000
C)$226,000
D)$233,000
E)over $233,000

Answer 1

Answer:

There are no correct answers in options

The correct answer is

DINK Method

One half of mortgage $ 90,000 One half of auto loan 5,000

One half of credit card loans 1,000

Other debts 6,000

Funeral expenses 4,000

Total insurance need $ 106,000

While the DINK method bases the insurance need on one-half of most debts, it does include 100 percent of "other debts". This helps ensure the remaining spouse has sufficient funds to meet future family needs

good luck ❤