Ginny and Larry Stewart are $52$ years old and have one son, age $14.$ Ginny is the primary earner, making $$80,000$ per year. Larry does not currently work. The Stewarts have decided to use the needs analysis method$$to calculate the value of a life insurance policy that would provide for Larry and their son in the event of Ginny$$s death.

Ginny and Larry estimate that while their son is still living at home, monthly living expenses for Larry and their child will be about $$3,300($in current dollars$).$ After their son leaves for college in $4$ years, Larry will need a monthly income of $$2,750$ until he retires at age $65.$ The Stewarts estimate Larry$$s living expenses after $65$ will only be $$2,300$ a month. The life expectancy of a man Larry$$s age is $82$ years, so the Stewart family calculates that Larry will spend about $17$ 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