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17 March, 07:59

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.

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  1. 17 March, 08:05
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    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
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