3. How much life insurance do you need? Calculating resources- Part 2 Alex and Becky Alden have completed Step 1 of their needs analysis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of Becky (age 41) and their two children (ages 7 and 11) in the event of Alex's (the primary earner's) death. The Aldens also have certain financial resources available after Alex's death, however, so their life insurance needs are lower than this amount. If Alex dies, Becky will be eligible to receive Social Security survivors' benefits-approximately $3,500 a month ( $42,000 a year) until the youngest child graduates from high school in 9 years. After the children leave home, Becky will be able to work full-time and earn an estimated $52,000 a year (after taxes) until she retires at age 65. After Becky turns 65, she'll receive approximately $3,100 a month ( $37,200 a year) from her own Social Security and retirement benefits. The life expectancy for a woman within Becky's demographic is 87 . The couple has also saved $60,000 in a mutual fund, and Alex's employer provides him a $100,000 life insurance policy. Using this information, complete Step 2 of the needs analysis worksheet to estimate their total financial resources available after death. (Noter the value of a certain entry is zero, be sure to enter " 0 " to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Step 2: Financial Resources Available After Death Assignment: Chapter 08 Insuring Your Life value of a certain entry is zero, be sure to enter " 0 " to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Finally, to determine the value of life insurance Alex and Becky should purchase, complete Step 3 of the needs analysis method by the total financial resources available from the total financial resources needed. True or False: Alternatively, the Aldens could have estimated their life insurance needs using the multiple-of-earnings method, a more complicated but more accurate method than the needs analysis. False True