Moe would like to know how much life insurance he will need forthe future. Using...

Moe would like to know how much life insurance he will need for the future. Using "The Easy Method," calculate how much life insurance will he need if his current income is $90,000.

Expert Solution

EASY METHOD : It is based on the insurance agent’s rule of thumb that a “typical family” will need approximately 70% of your salary for seven years before they adjust to the financial consequences of your death.

SO amount of insurance needed = $90000 x 7 x 0.7 = $441,000

jeff jeffy answered 3 years ago

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