Nancy and Leonard are married- They have two children who will be financially dependent for the next 20 years- They are taking out life insurance on Leonard, the bread winner and earns an annual salary of $80,000- Nancy is sure she is able to get a 9.5% rate of return on the policy settlement- Using the earnings multiple approach calculate how much life insurance they should take out on Leonard.

What Is the Difference Between Life and Health Insurance? 
Health insurance pays for your medical treatment, drugs, and preventative check-ups for you and others covered under your plan.

Life insurance provides a cash sum to your loved ones if you die during the length of the Life insurance policy.