Monica and Chandler are married, and each earns $75,000 in their job. They have the following...
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Monica and Chandler are married, and each earns $75,000 in their job. They have the following debts: • mortgage: $180,000 • auto loan: $10,000 • credit card balance: $6,000 In the event of one of their premature deaths, they would like to provide the following: Pay off all family debts. • Provide cash for a readjustment period equal to 50% of the deceased spouse's income. • Start a college fund in the amount of $100,000 for their unborn child. • Provide 50% of the family income during the dependency period (until their unborn child reaches age 18). Pay for the funeral costs, estimated to be $15,000. Their respective employer provides 1.5 times annual income in group term life insurance, and the couple has $50,000 invested in a brokerage account. Using the family need method, what is Monica's life insurance need? O $112,500 O $1,698,500 O $1,536,000 O $1.438,000 Monica and Chandler are married, and each earns $75,000 in their job. They have the following debts: • mortgage: $180,000 • auto loan: $10,000 • credit card balance: $6,000 In the event of one of their premature deaths, they would like to provide the following: Pay off all family debts. • Provide cash for a readjustment period equal to 50% of the deceased spouse's income. • Start a college fund in the amount of $100,000 for their unborn child. • Provide 50% of the family income during the dependency period (until their unborn child reaches age 18). Pay for the funeral costs, estimated to be $15,000. Their respective employer provides 1.5 times annual income in group term life insurance, and the couple has $50,000 invested in a brokerage account. Using the family need method, what is Monica's life insurance need? O $112,500 O $1,698,500 O $1,536,000 O $1.438,000
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Using The Family need method Let us calculate the Immediate needs at death and ... View the full answer
Related Book For
Introductory Statistics Exploring the World Through Data
ISBN: 978-0321978271
2nd edition
Authors: Robert Gould, Colleen Ryan
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