Purchasing Additional Insurance. Nancy is a widow with two teenage children. Nancy's gross income is $2,300 per month and taxes take about 23% 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. Therefore, she will need to purchase life insurance in the amount of $170,016. Now assume that Nancy's employer provides her with two times her annual gross salary in life insurance. How much additional insurance should Nancy purchase? The amount of additional insurance Nancy should purchase is $. (Round to the nearest dollar.)

Purchasing Additional Insurance. Nancy is a widow with two teenage children. Nancy's gross income is $2,300 per month and taxes take about 23% 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. Therefore, she will need to purchase life insurance in the amount of $170,016. Now assume that Nancy's employer provides her with two times her annual gross salary in life insurance. How much additional insurance should Nancy purchase? The amount of additional insurance Nancy should purchase is $. (Round to the nearest dollar.)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 43P

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