Question

You have a gross annual income of $62,000. use the multiple of income method to determine the minimum amount of life insurance you should carry.

Answer 1

Gross annual income of $62,000
The multiple of income method states that most families need 70% of ones income for seven years. 

If that were true, in this case, we would take
($62,000)(.70) = $43,400
($43,400)(7) = $303,800
You would want to have roughly $303,800 in life insurance.