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?

Question

Gia Gaines

Business

30 December, 20:51

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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Cruella · Answer 1

Using the DINK method, your life insurance need $117000

Explanation:

The DINK method is used to ensure that one spouse will not be unduly burdened by debts should the other spouse die ...

according to DINK method, you are to sum half of the total debts

total life insurance = funeral expenses + one half of mortgage + one half of auto load + one half of credit card balance + one half of other debts

= $6000 + $100000 + $8000 + $1000 + $2000

= $117000

Therefore, Using the DINK method, your life insurance need $117000