Question
Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $130,000; and
Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $130,000; and special needs are $80,000. Sarah has the following assets: $20,000 in cash, $30,000 in personal property (furniture, appliances, electronics, etc.) and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchase?
A) $80,000
B) $130,000
C) $50,000
D) $160,000
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