3. How much life insurance do you need? Calculating resources- Part 2 . Dmitri and Frances Ivanov have completed Step 1 of their needs analysis worksheet and determined that they need $2,745,000 to maintain the projected lifestyle of Frances (age 38) and their two children (ages 8 and 10) in the event of Dmitnis (the pilmary earner's) death. The Ivanovs also have certain financlal resources available after Dmitris death, however, so their If insurance needs are fower than this amcunt. If Dmitri dies, Frances will be eligible to receive Social Security survivors' benefits-approximately $3,000 a month (\$36,000 a year) until the youngest child graduates from high school in 10 years. After the children leave home, Frances will be able to work full-time and earn an estimated $46,000 a year (after taxes) until she retires at age 65, After Frances turns 65 , sheil receive approximately $2,400 a month (\$28, 800 a year) from her own Social Security and retirement benefits. The life expectancy for a woman within Frances's demographic is b7. The couple has also saved s42,300 in a mutual fund, and Dmitris employer provides him a $100,000 life insurance policy. Using this information, complete Step 2 of the needs anaiylis workaheet to estimafe their fotal financlal resources available after death. (Note: If the value of a certain entry is rero, be sare to enter "os to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Using this information, complete Step 2 of the needs analysis worksheet ro estimate their total finanolal resources availabie after death, (Note: if the value of a certain entry is zero, be sure to enter "o* to recelve credic.) Life Insurance Needs Analysis Worksheet (Part 2) Finaliy, to determine the value of life insurance Dmitri and Frances should purchase, complete 5 tep 3 of the needs analysis method by subtracting the total financiat resources availabie from the total financial resources nceded. True or False: Alternatively, the Ivanovs could have estimated their life insurance needs using the multipie-of-earnings method, a less complicated but less accurate method than the needs analysis: False True 3. How much life insurance do you need? Calculating resources- Part 2 . Dmitri and Frances Ivanov have completed Step 1 of their needs analysis worksheet and determined that they need $2,745,000 to maintain the projected lifestyle of Frances (age 38) and their two children (ages 8 and 10) in the event of Dmitnis (the pilmary earner's) death. The Ivanovs also have certain financlal resources available after Dmitris death, however, so their If insurance needs are fower than this amcunt. If Dmitri dies, Frances will be eligible to receive Social Security survivors' benefits-approximately $3,000 a month (\$36,000 a year) until the youngest child graduates from high school in 10 years. After the children leave home, Frances will be able to work full-time and earn an estimated $46,000 a year (after taxes) until she retires at age 65, After Frances turns 65 , sheil receive approximately $2,400 a month (\$28, 800 a year) from her own Social Security and retirement benefits. The life expectancy for a woman within Frances's demographic is b7. The couple has also saved s42,300 in a mutual fund, and Dmitris employer provides him a $100,000 life insurance policy. Using this information, complete Step 2 of the needs anaiylis workaheet to estimafe their fotal financlal resources available after death. (Note: If the value of a certain entry is rero, be sare to enter "os to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Using this information, complete Step 2 of the needs analysis worksheet ro estimate their total finanolal resources availabie after death, (Note: if the value of a certain entry is zero, be sure to enter "o* to recelve credic.) Life Insurance Needs Analysis Worksheet (Part 2) Finaliy, to determine the value of life insurance Dmitri and Frances should purchase, complete 5 tep 3 of the needs analysis method by subtracting the total financiat resources availabie from the total financial resources nceded. True or False: Alternatively, the Ivanovs could have estimated their life insurance needs using the multipie-of-earnings method, a less complicated but less accurate method than the needs analysis: False True
