Back to Assignment Attempts Average/3 * 2. How much life insurance do you need? Calculating needs - Part1 lason and Eleanor Stein are 52 years old and have one daughter, age 14. Jason is the primary carer, making $80,000 per year. Eleanor does not currently work. The Steins have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Eleanor and their daughter in the event of Jason's death. Inson and Eleanor estimate that while their daughter is still living at home, monthly living expenses for Eleanor and their child will be about $3,300 (in current dollars). After their daughter leaves for college in 4 years, Eleanor will need a monthly income of $2,750 until she retires at age 65. The Steins estimate Eleanor's living expenses after 65 will only be $2,300 a month. The life expectancy of a woman Eleanor's age is 87 years, so the Stein family calculates that Eleanor will send about 22 years in retirement Listing this information, complete the first portion of the needs analysis worksheet to estimate their tota/ living expenses. Life Insurance Needs Analysis Worksheet Name of insured Jason and Elmanor Stein Date July 2015 Step 1: Financial resources needed after death 1. Annual expenses and other needs Derled1 Period 2 Period 3 Monthly living $3,300 CENGAGE MINDTAP Assignment Chapter 08 Insuring Your Life Name of Insured Jason and Eleanor Stein Date July 31, 2015 Step 1: Financial resources needed after death 1. Annual living expenses and other needs Period 2 Period 3 a Period 1 $3,300 b. S Monthly living expenses Net yearly income needed (12 x 12) Number of years in time period Total living needs per time period (1 x 10 22 d S Total living expenses (add $1.062,600 une Id for each period to check your total) In addition to the monthly expenses, other ture outras must be accounted for before they had a child, Deanor worked as a mechanical engineer, butharnowledge and skills are now somewhat outdated. Therefore, they indude $25,000 for frescor in jo back to school. Additionally, son and nor want to create a college und $30,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate will mount to 12.000 Finally, they have taken out a fan for home improvements of $110,000 and an automobile lean of $5.000. They own the home but are an outstanding mortage of $100.000 In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Eleanor worked as a mechanical engineer, but her knowledge and skills are now somewhat outdated. Therefore, they include $25,000 for Eleanor to go back to school. Additionally, Jason and Eleanor want to create a college fund of $30,000 to fund their child'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 home improvements of $130,000 and an automobile loan or $5,000. They own their home but still have an outstanding mortgage of $300,000 Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 2. Special needs B b 30 3 Spouse's education fund Child's college fund Other needs Post expenses (unor costs and estate taxes) Debt liquidation House mortgage Other loans Total debt ( 446) Other financial needs Total Financial resouros needed (add right-hand column plus the Total Uving Expenses you calculated): LIT 4 b. 5 S $0 $ 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 Steins should purchase, they need to factor in additional Information True or Falset lason's future salary Of he does not die) should be accounted for in the remaining portion of the form True Using this information, complete the next portion of Step I to determine the total financial resources needed. 2. Special needs a. $0 C. Spouse's education fund Child's college fund Other needs Final expenses (funeral costs and estate taxes) Debt liquidation House mortgage 3. 4 Other loans C S $0 Total debt (40+45) Other financial needs Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated): $ 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 Steins should purchase, they need to factor in additional information True or False: Jason's future salary (it he does not dit) should be accounted for in the remaining portion of the form. True False Grade It Now Save & Continue Continue without saving Back to Assignment Attempts Average/3 * 2. How much life insurance do you need? Calculating needs - Part1 lason and Eleanor Stein are 52 years old and have one daughter, age 14. Jason is the primary carer, making $80,000 per year. Eleanor does not currently work. The Steins have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Eleanor and their daughter in the event of Jason's death. Inson and Eleanor estimate that while their daughter is still living at home, monthly living expenses for Eleanor and their child will be about $3,300 (in current dollars). After their daughter leaves for college in 4 years, Eleanor will need a monthly income of $2,750 until she retires at age 65. The Steins estimate Eleanor's living expenses after 65 will only be $2,300 a month. The life expectancy of a woman Eleanor's age is 87 years, so the Stein family calculates that Eleanor will send about 22 years in retirement Listing this information, complete the first portion of the needs analysis worksheet to estimate their tota/ living expenses. Life Insurance Needs Analysis Worksheet Name of insured Jason and Elmanor Stein Date July 2015 Step 1: Financial resources needed after death 1. Annual expenses and other needs Derled1 Period 2 Period 3 Monthly living $3,300 CENGAGE MINDTAP Assignment Chapter 08 Insuring Your Life Name of Insured Jason and Eleanor Stein Date July 31, 2015 Step 1: Financial resources needed after death 1. Annual living expenses and other needs Period 2 Period 3 a Period 1 $3,300 b. S Monthly living expenses Net yearly income needed (12 x 12) Number of years in time period Total living needs per time period (1 x 10 22 d S Total living expenses (add $1.062,600 une Id for each period to check your total) In addition to the monthly expenses, other ture outras must be accounted for before they had a child, Deanor worked as a mechanical engineer, butharnowledge and skills are now somewhat outdated. Therefore, they indude $25,000 for frescor in jo back to school. Additionally, son and nor want to create a college und $30,000 to fund their child's college education. They estimate that final expenses (funeral costs and estate will mount to 12.000 Finally, they have taken out a fan for home improvements of $110,000 and an automobile lean of $5.000. They own the home but are an outstanding mortage of $100.000 In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Eleanor worked as a mechanical engineer, but her knowledge and skills are now somewhat outdated. Therefore, they include $25,000 for Eleanor to go back to school. Additionally, Jason and Eleanor want to create a college fund of $30,000 to fund their child'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 home improvements of $130,000 and an automobile loan or $5,000. They own their home but still have an outstanding mortgage of $300,000 Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 2. Special needs B b 30 3 Spouse's education fund Child's college fund Other needs Post expenses (unor costs and estate taxes) Debt liquidation House mortgage Other loans Total debt ( 446) Other financial needs Total Financial resouros needed (add right-hand column plus the Total Uving Expenses you calculated): LIT 4 b. 5 S $0 $ 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 Steins should purchase, they need to factor in additional Information True or Falset lason's future salary Of he does not die) should be accounted for in the remaining portion of the form True Using this information, complete the next portion of Step I to determine the total financial resources needed. 2. Special needs a. $0 C. Spouse's education fund Child's college fund Other needs Final expenses (funeral costs and estate taxes) Debt liquidation House mortgage 3. 4 Other loans C S $0 Total debt (40+45) Other financial needs Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated): $ 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 Steins should purchase, they need to factor in additional information True or False: Jason's future salary (it he does not dit) should be accounted for in the remaining portion of the form. True False Grade It Now Save & Continue Continue without saving