2. Calculate the amount of life insurance James needs based on the Financial Needs Method. Readjustment (1 year) Child's Age (5-16) Child's Age (17-18) Empty Nest/Blackout Retirement Period Period for Surviving for Surviving Spouse (Age 48-65) Spouse (20 years) 34 - 35 35 - 47 47 - 48 48 - 65 66 - 85 James' (Would Be) Age 41 41 - 53 53 - 54 54 - 71 50,000 Annual Income Needed Less: Assumed OASDI (Social Security) 65,250 30,000 65,250 30,000 35,250 65,250 15,000 50,250 46,000 25,000 Net Annual Income Needed 35,250 50,000 21,000 i = (03) - 1x100 1.9417 1.9417 1.9417 1.9417 1.9417 Years Needed PV of net annual income needed Discount Period Present Value Today 2. Calculate the amount of life insurance James needs based on the Financial Needs Method. Readjustment (1 year) Child's Age (5-16) Child's Age (17-18) Empty Nest/Blackout Retirement Period Period for Surviving for Surviving Spouse (Age 48-65) Spouse (20 years) 34 - 35 35 - 47 47 - 48 48 - 65 66 - 85 James' (Would Be) Age 41 41 - 53 53 - 54 54 - 71 50,000 Annual Income Needed Less: Assumed OASDI (Social Security) 65,250 30,000 65,250 30,000 35,250 65,250 15,000 50,250 46,000 25,000 Net Annual Income Needed 35,250 50,000 21,000 i = (03) - 1x100 1.9417 1.9417 1.9417 1.9417 1.9417 Years Needed PV of net annual income needed Discount Period Present Value Today