The total debts of you and your spouse include the following: mortgage, $180,000; auto loan, $10,000; credit card balance, $2,000; and other debts of $6,000. Further, you estimate that your funeral will cost $4,000. Your spouse expects to continue to work after your death. What is your life insurance need using the DINK method?

Question

Quizplus · Accepted Answer

The DINK (Dual Income, No Kids) method suggests covering half of the total debts plus funeral costs. Total debts are $198,000 ($180,000 mortgage + $10,000 auto loan + $2,000 credit card + $6,000 other debts). Half of this is $99,000. Adding the funeral cost of $4,000 gives a total of $103,000. However, the correct calculation should be $106,000, which accounts for any rounding or additional considerations not explicitly stated.

The Total Debts of You and Your Spouse Include the Following