Jane and Vitorio Are Both Professionals Who Can Easily Live

question 159

Multiple Choice

Jane and Vitorio are both professionals who can easily live on either of their incomes , if there were no debt payments. They have a combined net worth of $950 000. They have debts in the amount of a $250 000 mortgage and car loans of $85 000 on a BMW and a Jaguar. In addition, they pay off their credit cards off each month, usually around $21 000. If anything should happen to either one of them, they want to leave their family debt-free. How much life insurance should they consider?

• A)They should each have a policy for $356 000.
• B)None because their net worth is $950 000.
• C)They should each have a policy for $615 000.
• D)They should have $335 000 coverage on each of them.