Stella is a stay-at-home mom. She and her husband Mark have 2 young children. Mark has $130,000 in group life insurance through his employer. They have an outstanding mortgage of $520,000. Stella and Mark are planning to save up $50,000 for each child's education, but currently only have a total of $20,000 saved for education at this time. Assume a funeral will cost $25,000. Assume an interest rate of 4% compounded annually. Stella is now 44 years-old. Stella plans to return to work part-time in the event of Mark's death. They have estimated that they would still need an income of $6000 per month.

How much life insurance should they buy on Mark's life, if Stella needs the income to age 65?

 $1.031,853.87

$1,028,486.87

$1,526,853.87

$981,868.72

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To calculate how much life insurance Ma... View the full answer