Nancy is a widow with two teenage children. Nancy’s gross income is $ 3,000 per month, and taxes take about 30% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?
Answer to relevant QuestionsNancy’s employer provides her with two times her annual gross salary in life insurance. How much additional insurance should Nancy purchase based on the information in the previous problem? Shortly after Steve graduated from college, he considered a whole life insurance policy that would provide $ 10,000 in life insurance protection and accumulate a cash value of twice his current annual income by age 65. Two ...Concerning Brad’s life insurance decision, comment on the following: a. His need for life insurance b. If you think he needs life insurance, is whole life his best choice? c. His plan to use the whole life policy’s loan ...Why do investors measure risk? Describe the two common measures of risk. What are dividends? Do all firms pay them?
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