Judy and James have a 4-year-old child. They plan to purchase life insurance using this formula: Current income × 7 × 70%. Which method are they using to determine their life insurance needs?

Question

Quizplus · Accepted Answer

The "Easy method" is a simplified approach to estimating life insurance needs, often involving a multiplier of current income. In this scenario, Judy and James are using a formula that multiplies the current income by 7 and then takes 70% of that figure, which aligns with the characteristics of the Easy method.

Judy and James Have a 4-Year-Old Child