Mahesh earns 1,20,000 pa. He has total debt of Rs. 2,00,000 and have two dependants. Interest rate is 7%, and assumes 80% of his pre-death salary is the estimated requirement to maintain his family after paying the loan. Calculate the life insurance cover needed under multiple approach method.

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Mahesh earns 1,20,000 pa. He has total debt of Rs. 2,00,000 and have two dependants. Interest rate is 7%, and assumes 80% of his pre-death salary is the estimated requirement to maintain his family after paying the loan. Calculate the life insurance cover needed under multiple approach method.
A . 18 lakhs
B . 15 lakhs
C . 12 lakhs
D . 16 lakhs

Answer: D