Using the Multiple of Income Method to estimate life insurance needs,what is the minimum amount of insurance needed for Susan Smith if her annual income is $60,000?

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The Multiple of Income Method suggests purchasing life insurance coverage that is a multiple of your annual income, typically recommended between 5 to 10 times your annual income. For Susan Smith, with an annual income of $60,000, the minimum recommended using this method would be 5 times her annual income, which equals $300,000.

Using the Multiple of Income Method to Estimate Life Insurance