Homer and Marge are married, both 40 years of age with two children (ages 10 and 12)

Homer and Marge are married, both 40 years of age with two children (ages 10 and 12). They have some debts including:

• Credit cards = $3,000
• Car loans = $20,000
• Home mortgage= $125,000

Their home is worth $175,000 and they have a net worth of $75,000. They are both employed. Homer makes $40,000 per year at the local nuclear power plant while Marge hauls in $45,000 in the hair-styling business.

Questions
Please post your analysis of the following issues:

• What type of life insurance policy would you recommend for Marge? Why?
• How much coverage should she have? (Explain which method you used to calculate the coverage needed and why.)