The total debts of you and your spouse include the following: mortgage,$200,000; auto loan,$16,000; credit card balance,$2,000; and personal debts of $4,000.Further,you estimate that your funeral will cost $6,000.Your spouse expects to continue to work after your death.What is your life insurance need using the DINK method?

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Quizplus · Accepted Answer

The DINK (Dual Income, No Kids) method for calculating life insurance needs typically involves paying off all debts and providing for funeral expenses. Here, the total debts are $200,000 (mortgage) + $16,000 (auto loan) + $2,000 (credit card balance) + $4,000 (personal debts) = $222,000. Since the DINK method involves only your share of the debt and assuming debts are shared equally, we divide this by 2, getting $111,000. Adding the funeral expenses of $6,000 results in a total life insurance need of $117,000.

The Total Debts of You and Your Spouse Include the Following