Mike makes 45000 a year and laura makes 65000 yearly they...

Name: mike makes 45000 a year and laura makes 65000 yearly they estimate that their annual living expenses are 53885 the couple has 102604 in outstanding debts currently they each have 500000 in l 31856
Uploaded: 2023-10-02T06:09:11-08:00
Duration: 2 min 12 s
Channel: Akash M
Description: mike makes 45000 a year and laura makes 65000 yearly they estimate that their annual living expenses are 53885 the couple has 102604 in outstanding debts currently they each have 500000 in l 31856

Mike makes $45,000 a year and Laura makes $65,000 yearly. They estimate that their annual living expenses are $53885. The couple has $102604 in outstanding debts. Currently, they each have $500,000 in life insurance. The couple wants to use a multiple of seven to replace income and to cover living expenses. How much more life insurance should Mike purchase? Answer:

Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $65,000 per year, and Amy earns $73,000. Each has a retirement plan valued at approximately $14,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $15,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least five years if one of them should die. Assuming $14,000 in final expenses and $20,000 allocated to help make mortgage payments, calculate the amount of life insurance they should purchase using the needs-based approach. Also assume that both Mack and Amy would replace 75 percent of their individual current income for five years. Use a 3 percent after-tax, after-inflation rate of return for your calculations.

Akash M.

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