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Personal Finance 1st Edition by Jack R. Kapoor
Edition 1ISBN: 1308231393Personal Finance 1st Edition by Jack R. Kapoor
Edition 1ISBN: 1308231393Estimating Life Insurance Needs Using the DINK Method. You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $38,000 annually. You own a home with an $80,000 mortgage, and you owe $15,000 on car loans, $5,000 in personal debt, and $2,000 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 $5,000. Estimate your total insurance needs using the DINK method.
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The DINK Method – If a person has no dependents and his spouse earns as much as or more than he does, there are simple insurance needs. All that is needed is to ensure that the spouse would not be unduly burdened by debts should he die.
This method assumes that the spouse will continue to work after the person’s death.
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