Karen and Dave King are a two-income couple in their early thirties. They have two children, ages 6 and 3. Daves monthly take-home pay is $1,800, and Karens is $2,100. The Kings feel that because they are a two-income family, they both should have adequate life insurance coverage. Accordingly, they are presently trying to decide how much life insurance each one of them needs. To begin with, they would like to set up an education fund for their children in the amount of $80,000 to provide college funds of $10,000 a year in todays dollars for four years for each child. Moreover, in the event of either one of their deaths, they want the surviving spouse to have the funds to pay off all outstanding debts, including the $140,000 mortgage on their house. They estimate that they have $15,000 in consumer installment loans and credit cards. They also project that if either of them dies, the other probably will be left with about $10,000 in final estate and burial expenses. As far as their annual income needs are concerned, Dave and Karen both feel very strongly that each should have enough insurance to replace their respective current income levels until the youngest child turns 18 (a period of 15 years). Though neither Dave nor Karen would be eligible for social security survivors benefits because they both intend to continue working, both children would qualify, in the (combined) amount of around $1,400 a month. The Kings have amassed about $75,000 in investments, and they have a decreasing-term life policy on each other in the amount of $85,000, which would be used to partially pay off the mortgage. Further, Dave has a $60,000 group policy at work and Karen a $90,000 group policy.