Life Insurance Needs Analysis Worksheet Name of insured Patrick and Stasia Strong Date Step 1: Financial resources needed after death 1. Annual living expenses and other needs a. Monthly living expenses b. Net yearly income needed (1a 12) c. Number of years in time period d. Total living needs per time period (1b1c) Period 1 $3,700 13 Period 3 $ $ 15 17 July 31, 2015 Total living expenses (add Line 1d$1,686,000 for each period to check your total): 2. How much life insurance do you need? Calculating needs - Part1 Stasia and Patrick Strong are 37 years old and have one daughter, age 5. Stasia is the primary earner, making $87,000 per year. Patrick does not currently work. The Strongs have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Patrick and their daughter in the event of Stasia's death. Stasia and Patrick estimate that while their daughter is still living at home, monthly living expenses for Patrick and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Patrick will need a monthly income of $3,100 until he retires at age 65 . The Strongs estimate Patrick's living expenses after 65 will only be $2,700 a month. The life expectancy of a man Patrick's age is 82 years, so the Strong family calculates that Patrick 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