3. How much life insurance do you need? Caloulating resources-Part 2 Jacques and kyoko Smith have completed Step 1 of their needs analifis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of kyoke (age 41) and their two children (ages 7 and 11) in the event of lacques's (the primary earner's) death. The 5miths aleo have certain financial resources available after lacques's death, however, so their life insurance needs are lower than this amount. If Jacques dies, Kyoko will be eligible to receive Sodal security survivors' benelits-approximately $3,500 a month (\$42,000 a year) until the youngest child araduates from high school in 9 years. After the children leave home, Kyoko will be able to work full-time and earn an estimated $52,000 a year (after taxes) unti she retires at age 65. After Kyoko turns 65 , sheil receive approximately $3,100 a month ( $37,200 a year) from her own 50cial Socurity and retirement benefits. The lfe expectancy for a woman within Kyoko's demographic is 87 . The couple has atio saved $60,000 in a mutual fund, and Jacques's employer provides him a $100,000 life insurance poticy. Using this information, compiete Step 2 of the needs analysis worisheet to estimate their total financial resources available after death. (Note: If the value of a certain entry is zero, be sure to enter "o" to receive credit.) Life Insurance Needs Analysis Worksheet (Part 2) Step 2: Financial Resources Available After Death Finally, to determine the value of Afe insurance lacques and kyolio should purchase, complete step 3 of the needs analysis method by subtracting the total financal resources available from the total financial resouross nfeded. True or False: Altematively, the Smithis 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