2. How much life insurance do you need? Calculating needs - Part1 Jalil and Aluna Ngumi are 38 years old and have one son, age 9 . Jalit is the primary earner, making $140,000 per year. Aluna does not currently work. The Ngumis have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Aluna and their son in the event of Jalil's death. Jalil and Aluna estimate that while their son is stili living at home, monthly iling expenses for Aluna and their child will be about s4,000 (in current doltars). After their son leaves for college in 9 years, Aluna will need a monthly income of $3,300 until she retires at age 65 . The Ngumis estimate Aluna's living expenses after 65 will only be $2,900 a month. The life expectancy of o woman Aluna's ape is 87 years, 50 the Ngumi family calculates that Aluna will spend about 22 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses. Life Insurance Needs Analysis Worksheet Life Insurance Needs Analysis Worksheet Name of insured Javil and Aluna Ngumi Date July 31 , 2015 Step 1: Financial resources needed after death 1. Annual living expenses and athar noade Total living expenses (add $1,910,400 Une 1d for each perlod to check your total): In addition to these monthly expenses, other future outlays must be accounted for, Before they had a child, Aluna worked as a mechanicak engineer, but her knowledge and skiis are now somewhat outdated. Therefore, they include s40,000 for Aluna to go back to school, Additionally, Jalil and Auna want to create a college fund of $60,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $18,000. Finally, they have taken out a loan for a business venture of $32,200 and a credit card balance of $1,200, Because the Ngumis are renters, they have no outstanding mortgage. Using this information, complete 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 life insurance policy the Ngumis should purchase, they need to factor in additional information. True or False: The value of Jalil's employer-offered life insurance policy should be accounted for in the remaining portion of the form. True False