You are a dual income, no kids family. you and your spouse have the following debts (total): mortgage, $200,000; auto loan, $9600; credit card balance, $2200; and personal debts of $5300. further, you estimate that your funeral will cost $4400. your spouse expects to continue to work after your death. using the dink method, what does your life insurance need?

The life insurance need is $112950

Solution:

Given that,

Mortgage =

Auto loan =

Credit card balance =

Personal debts =

Funeral expenses =

To find the life insurance needs using DINK method, we have use the following formula,

On substituting the values we get,

The term DINK stands for Double Income, No Kids. This method has you adding half of all your debts plus funeral expenses.

answer: (3,11) is your answer.