The time to purchase life insurance

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Reference no: EM131329602

You and your spouse are both 30 years old. Recently, you had your first child and you believe that now is the time to purchase life insurance. You currently owe $250,000 on your home and your take-home pay is $50,000 per year. You expect your child to attend a state college where total annual costs (including room and board) approximately $25,000 in today's dollars. How much life insurance do you need based upon a needs analysis. College costs are expected to rise 5% per year indefinitely.

Reference no: EM131329602

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