Just-married couples sometimes overindulge in the type and amount of life insurance that they buy. John and Nicole Greenwood of Murfreesboro, Tennessee, took a diff erent approach.

Both were working and had a small amount of life insurance provided through their respective employee benefi t programs:

John, $40,000, and Nicole, $50,000. During their discussion of life insurance needs and related costs, they decided that if Nicole completed her master’s degree in industrial psychology, she would have better employment opportunities. Consequently, they decided to use money they had available for additional life insurance to pay for Nicole’s education. They both feel, however, that they do not want to have inadequate life insurance.

(a) In what way does Nicole’s return to school alter the Greenwoods’ life insurance needs?