Life Insurance: Income Replacement Method Text P$291$

Danika is the sole wage earner in a $$typical family$,$ with $$80,000$ gross annual income.

Use the income replacement method to determine how much life insurance Danika should carry.

General Rule: Typical family will need insurance coverage equal to $70\%$ of your salary for $7$ years

Solution:

Recommended amount of Life Insurance $=$ of Gross Income Gross Income $=$

years $\%$ of Gross income $=$

# years $=$

Total Life Insurance Needs $=$