2. How much life insurance do you need? Caiculating needs-Part1 Maria and Paolo Ross5 are 37 years old and have one daughtec, age 5. Maria is the primary earner, making 507,000 per year. Paolo does not currently work. The Rossis have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Paolo and their daughter in the event of Maria's death. Maria and Paolo estimate that while their daughter is still living at home, monthly living expenses for Paolo and their child will be about $3, 700 (in current dollars). After their daughter leaves for college in 13 years, Paolo will need a monthly income of $3, 100 until he retires at age 65 . The Rossis estimate Paolo's living expenses after 65 will only be $2,700 a month. The life expectancy of a man Paolo's age is 82 years, 50 the Fussi family calculates that Paolo will spend about 17 years in retirement. Using this information, complete the first portion of the needs analysis workoheet to estimate their total living expenses. Life Insurance Needs Analysis Worksheet In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Paolo worked as a real estate agent, but his knowledge and skills are now somewhat outdated. Therefore, they indude $30,000 for Paolo to 00 back to school. Additionally, Maria and Paolo want to create a college fund of $35,000 to fund their chal's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for a business venture of $40,000 and an automobire loan of $3,000, Because the fossis are renters, they have no outstanding mortgage. Using this information, oomplete the next portion of step 1 to determine the total financial resources needed. The second half of the needs analysis worksheet is not shown on this page. To complete the worksheet and determine the value of the lite insurance policy the frossis should purchase, they need to factor in additional information. True or False: Paolo's anmual sodial Security benefit should be accounted for in the remalning portion of the form: True False