When John is married with no children and hee and his wife both work and their combined debt load is $200,000, the insurance policy is $103000.
The insurance policy of John will be:
= ($200000 + $6000)/2
= $206000/2
= $103000
The method to use when Brenda and her husband both work and they have two children is the sink method which will be:
= $60000 × 70% × 7
= $294000
When Joaquin is married and has one child, the dink method will be used. This will be:
= $250000 × 70% × 7
= $1225000
For Brandon is a recent college graduate with no spouse or dependents and no debt and since he is looking for his first full-time job, there is no need to buy the insurance policy.
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