2. Estimating life insurance needs. Use Worksheet 8.1. Margo Schmidt is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Esther for two years. Her income is $850 a month in Social Security survivor's benefits. Esther wants to make sure that her mother will be taken care of if Esther should die prematurely. Esther, 40, is single and earns $55,000 a year as a human resources manager for a small manufacturing firm. She owns a condo with a current market value of $100,000 and has a $70,000 mortgage. Other debts include a $5,000 auto loan and $500 in various credit card balances. Her 401 (k) plan has a current balance of $24,500 and she keeps $7,500 in a money market account for emergencies. After talking with her mother's doctor, Esther believes that her mother will be able to continue living independently for another two to three years. She estimates that her mother would need about $2,000 a month to cover her living expenses and medical costs during this time. After that, Esther's mother will probably need nursing home LO LO 2. Estimating life insurance needs. Use Worksheet 8.1. Margo Schmidt is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Esther for two years. Her income is $850 a month in Social Security survivor's benefits. Esther wants to make sure that her mother will be taken care of if Esther should die prematurely. Esther, 40, is single and earns $55,000 a year as a human resources manager for a small manufacturing firm. She owns a condo with a current market value of $100,000 and has a $70,000 mortgage. Other debts include a $5,000 auto loan and $500 in various credit card balances. Her 401 (k) plan has a current balance of $24,500 and she keeps $7,500 in a money market account for emergencies. After talking with her mother's doctor, Esther believes that her mother will be able to continue living independently for another two to three years. She estimates that her mother would need about $2,000 a month to cover her living expenses and medical costs during this time. After that, Esther's mother will probably need nursing home LO LO