Question

You and your spouse each earn $50,000 and have no kids. You and your spouse have the following debts: Mortgage = $190,000; Auto loan = $10,000; Credit card balance = $2,000, and other debts of $4,000. Further, you estimate that your funeral will cost $6,000. Your spouse expects to continue to work after your death. Using the DINK Method, what should be your need for life insurance for each of you? (The death benefit for one of the policies)

Answer 1

DINK Method

This method has you adding half of all your debts plus funeral expenses. DINK stands for double income, no kids.

190.000/2=95.000

10.000/2=5.000

2.000/2=1.000

4.000/2=2.000

6.000

95.000+5.000+1.000+2.000+6.000=109.000

109.000 will be your need for life insurance