Kyle and Laura have been married 3 years. They bought a house costing $212,000 using a $190,000 mortgage. They have no other debts. Kyle earns $42,000 per year and Laura $41,000. Each has a retirement plan valued at $10,000. They recently received a mail offer from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $20,000 cash value survivorship joint life policy. They each would like to provide the other with support for 5 years if one of them should die. Assuming $10,000 in final expenses, calculate the amount of life insurance they need using the needs-based approach. Assume a 4% interest rate.
Orignal From: Personal Finance, Life Insurance Planning?
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