Tim and Allison are married and have two children,ages 4 and 7. Allison is a “nonworking”spouse who devotes all of her time to household activities. Estimate how much life insurance Tim andAllison...

Tim and Allison are married and have two children, ages 4 and 7. 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 estimate how much insurance Tim and Allison should carry, multiply the number of years before their youngest child, 4, reaches 18 by $10,000.

Insurance needed = 14 x $10,000 or $140,000.