Jason and Eleanor Stein have completed Step 1 of their needs analysis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of Eleanor (age 32) and their two children (ages 3 and 4) in the event of Jason's (the primary earner's) death. The Steins also have certain financial resources available after Jason's death, however, so their life insurance needs are lower than this amount. If Jason dies, Eleanor 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 15 years. After the children leave home, Eleanor will be able to work full-time and earn an estimated $52,000 a year (after taxes) until she retires at age 65. After Eleanor turns 65, she'll 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 Eleanor's demographic is 87. The couple has also saved $60,000 in a mutual fund, and Jason'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. (Note: If 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 1. Income Period 2 Period 3 Annual Social Security survivors' benefits $ Surviving spouse's annual income Other annual pensions and Social $ Security benefits Annual income (1a + 1b + 1c) Number of years in time period 15 Total period income (10 x 1e) g. Total income 2. Savings and investments 3. Other life insurance 4. Other resources Total Financial Resources Available (1g + 2 + 3 + 4): $2,109,600 to toto $2,269,600 Finally, to determine the value of life insurance Jason and Eleanor should purchase, complete Step 3 of the needs analysis method by subtracting the total financial resources available from the total financial resources needed: Step 3: Additional Life Insurance Needed Total Financial Resources Needed (from Step 1) Total Financial Resources Available (from Step 2) $2,418,000 $2,269,600 Additional Life Insurance Needed: True or False: Alternatively, the Steins could have estimated their life insurance needs using the multiple-of-earnings method, a less complicated but less accurate method than the needs analysis. O O False True Jason and Eleanor Stein have completed Step 1 of their needs analysis worksheet and determined that they need $2,418,000 to maintain the projected lifestyle of Eleanor (age 32) and their two children (ages 3 and 4) in the event of Jason's (the primary earner's) death. The Steins also have certain financial resources available after Jason's death, however, so their life insurance needs are lower than this amount. If Jason dies, Eleanor 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 15 years. After the children leave home, Eleanor will be able to work full-time and earn an estimated $52,000 a year (after taxes) until she retires at age 65. After Eleanor turns 65, she'll 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 Eleanor's demographic is 87. The couple has also saved $60,000 in a mutual fund, and Jason'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. (Note: If 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 1. Income Period 2 Period 3 Annual Social Security survivors' benefits $ Surviving spouse's annual income Other annual pensions and Social $ Security benefits Annual income (1a + 1b + 1c) Number of years in time period 15 Total period income (10 x 1e) g. Total income 2. Savings and investments 3. Other life insurance 4. Other resources Total Financial Resources Available (1g + 2 + 3 + 4): $2,109,600 to toto $2,269,600 Finally, to determine the value of life insurance Jason and Eleanor should purchase, complete Step 3 of the needs analysis method by subtracting the total financial resources available from the total financial resources needed: Step 3: Additional Life Insurance Needed Total Financial Resources Needed (from Step 1) Total Financial Resources Available (from Step 2) $2,418,000 $2,269,600 Additional Life Insurance Needed: True or False: Alternatively, the Steins could have estimated their life insurance needs using the multiple-of-earnings method, a less complicated but less accurate method than the needs analysis. O O False True