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Susan is a single parent with two children and earns $45,000 per year. She is purchasing term life insurance to replace 65% of her income
Susan is a single parent with two children and earns $45,000 per year. She is purchasing term life insurance to replace 65% of her income for 15 years, until her youngest child will be self supporting. Assuming her survivors can receive a 3% after-tax, inflation return on insurance proceeds, use the earnings multiple approach to calculate the face value of her policy.
$33,445 | ||
$349,245 | ||
$402,975 | ||
$56,668 |
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