natamick
contestada

James is looking into life insurance. He currently makes $50,000 a year and has two children, ages 15 and 11. How much coverage and how long a term of life insurance would you recommend to James?

Respuesta :

miyaa45

Step-by-step explanation:

If James wants to cover both of his children at his current salary until they both can support themselves on their own, he would need a 10-year term policy (if the youngest moves out when he/she is 21) with a face value of $500,000 (current salary-$50,000*10 years).

abiolataiwo2015
  • The coverage amount is $500,000
  • The recommended term of life insurance is 10-year term.

Based on the information given i would recommend insurance coverage amount of $500,000 and a term of life policy of 10-year term.

James will need a coverage amount of $500,000 until the two children are financial independent and can cater for themselves.

Using a long term policy of 10 years term of life insurance is recommended as the older will be 25 years and the youngest will be 21 years by then.

Coverage insurance amount:

Insurance coverage=Salary× Term of life

Insurance coverage=$50,000×10 year

Insurance coverage=$500,000

Inconclusion:

  • The coverage amount is $500,000
  • The recommended term of life insurance is 10-year term.

Learn more here:

https://brainly.com/question/24214455?

Otras preguntas