Question

Tim and Allison are married and have two children, ages 2 and 6. Allison is a "nonworking" spouse who devotes all of her time to household activities. Estimate how much life insurance Tim and Allison should carry to cover Allison.

Answer 1

Answer :

Life insurance needed = Number of years until the youngest child is 18 x $10,000

(18-2) x 10,000

16 x $10,000 =

=$160,000

Therefore estimated Life insurance needed is $ 160,000