1. You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $40,000 annually. You own a home with a $100,000 mortgage, and you owe $11,000 on car loans, $2,000 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. You estimate that funeral expenses will be $5,000. Estimate your total insurance needs using the DINK method.
2. You are the wage earner in a "typical family," with $60,000 gross annual income. Use the easy method to determine how much life insurance you should carry.(Do not round intermediate calculations.)
3. Georgia, a widow, has take-home pay of $1,050 a week from her part-time job. Her disability insurance coverage replaces 70 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia off work for 17 weeks?(Do not round intermediate calculations.)
4. You have a gross annual income of $52,000. Use the multiple of income method to determine the minimum amount of life insurance you should carry.