Question

Jim and Susan are both in good health and Jim has a reasonably secure career. Jim currently has an income of $70,000 and has 2 children. Jim has been married to Susan for 15 years. Under the Easy Method, what is the amount of insurance Jim would need for his family?

Answer 1

$343,000

Step-by-step explanation:

Given:

Annual income of Jim = $70,000

Amount of life insurance using Easy Method

According to the Easy Method of life insurance, a person has to take 70% of his annual income and multiply it with 7 to get a minimum amount of Life insurance for his family.

According to Easy method Jim's Life insurance amount is $343,000

Computation:

(Annual income)(70%)(7)

($70,000)(0.7)(7)

$343,000