Problem 12-9 Estimating Life Insurance Needs Using the DINKMethod [LO12-2]You are a dual-income, no-kids family. You and your spouse have the following debts:Mortgage = $260,000; Auto loan = $11,500; Credit card balance = $2,250; and otherdebts = $6,500. Further, you estimate that your funeral will cost $6,000. Your spouseexpects to continue to work after your death. Using the DINK method, what should beyour need for life insurance?Answer is complete but not entirely correct.Total insurance need$ 146,125 ×

DINK = dual income, no kids.The DINK method is the method used where both persons earn income and it…

Answered: You are a dual-income, no-kids family.…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter8: Insuring Your Life

Section: Chapter Questions

Problem 3FPE

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Harvey Cook, 45, is a recently divorced father of two children, ages 10 and 7. He currently earns $95,000 a year as an operations manager for a utility company. The divorce settlement requires him to pay $1,500 a month in child support and $400 a month in alimony to his ex-wife. Harvey is now renting an apartment, and the divorce settlement left him with about $100,000 in savings and retirement benefits. His employer provides a $75,000 life insurance policy. Harvey’s ex-wife is currently the beneficiary listed on the policy. What advice would you give to Harvey? What factors should he consider in deciding whether to buy additional life insurance at this point in his life? If he does need additional life insurance, what type of policy or policies should he buy? Use Worksheet 8.1 to help answer these questions for Harvey.
9. Social Security payments to Deceased Dependants If the deceased was entitled to $1,100/per month and the widow is 67, how much would the widow be entitled to assuming the family max has not been met? Do Not use $ dollar $ signs in your answer
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3. How much life insurance do you need? Calculating resources- Part 2 Dmitri and Frances Ivanov have completed Step 1 of their needs analysis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of Frances (age 41) and their two children (ages 7 and 11) in the event of Dmitri’s (the primary earner’s) death. The Ivanovs also have certain financial resources available after Dmitri’s death, however, so their life insurance needs are lower than this amount. If Dmitri dies, Frances will be eligible to receive Social Security survivors’ benefits—approximately $3,500 a month ($42,000 a year) until the youngest child graduates from high school in 9 years. After the children leave home, Frances will be able to work full-time and earn an estimated $52,000 a year (after taxes) until she retires at age 65. After Frances turns 65, she’ll receive approximately $3,100 a month ($37,200 a year) from her own Social Security and retirement benefits. The life…
9.4 Life Insurance; Do You Really Need It? Daryl is a single 25-year-old with no children. He has $75,000 in unpaid student loans, $10,000 in a savings account. His employer offers $50,000 of annually renewable term life insurance to him at no cost as an employee benefit. How much additional life insurance should he purchase? $0. $15,000. $25,000. $65,000.
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I dont get how this answer is incorrect
LO.2 Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her was 18,000 (300 per day). Medicare paid 8,500 toward the cost of her stay. Belinda also received 5,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is 370. What is the effect on Belindas gross income?
Find what insurance will cover of your bodily injury find what insurance will pay for your friend's bodily injury find what your insurance will pay for neighbor's automobile damage
1
Problem 12-7 Calculating the Amount of Life Insurance Needed Using the Easy Method [LO12-2] Suppose that yours is a typical family. Your annual income is $55,000. Using the easy method, what should be your need for life insurance? (Do not round intermediate calculations.) Life insurance need $ 26,950
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