Question

You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $33,000 annually. You own a home with a mortgage of $90,000, and you owe $18,100 on car loans, $7,800 in personal debt, and $3,800 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8,500. Estimate your total insurance needs using the DINK method.

Total insurance need:

Answer 1

Calculation of insurance needs using DINK method ( assuming funeral expenses of $8500 for both)

One half of mortgage	=	$45,000
One half of car loan	=	9,050
One half of personal debts	=	3,900
One half of credit card loans	=	1,900
One half of Funeral expenses	=	4,250
Total insurance needs	=	$64,100

note:- funeral expenses is taken 8500 for both. so, in calculation i have taken half for one member.

Calculation of insurance needs using DINK method ( assuming funeral expenses of $8500 for one person)

One half of mortgage	=	$45,000
One half of car loan	=	9,050
One half of personal debts	=	3,900
One half of credit card loans	=	1,900
One half of Funeral expenses	=	8,500
Total insurance needs	=	$68,350

note:- funeral expenses is taken 8500 for one person..