1. Estimating Life Insurance Needs Using the DINK Method. You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $28,000 annually. You own a home with an $80,000 mortgage, and you owe $10,000 on car loans, $5,000 in personal debt, and $3,000 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. Estimate your total insurance needs using the DINK method.
2. Estimating Life Insurance Needs Using the DINK Method. You are a dual income, no kids family. You and your spouse have the following debts: 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. Using the DINK method, what should be your need for life insurance?