Income Method. Nancy is a widow with two teenage
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Income Method. Nancy is a widow with two teenage
1. Income Method. Nancy is a widow with two teenage children. Nancy’s gross income is $3,000 per month, and taxes take about 30% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?
2. Purchasing Additional Insurance. Nancy’s employer provides her with two times her annual gross salary in life insurance. How much additional insurance should Nancy purchase based on the information in the previous problem?
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